CompX(CIX) - 2025 Q1 - Quarterly Results

Financial Highlights CompX reported strong growth in Q1 2025, with net sales increasing 6.1% year-over-year to $40.3 million, operating income rising 59.5% to $5.9 million, and net income growing 37.8% to $5.1 million, resulting in a diluted EPS of $0.42 compared to $0.31 in Q1 2024 Key Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $40.3M | $38.0M | +6.1% | | Operating Income | $5.9M | $3.7M | +59.5% | | Net Income | $5.1M | $3.7M | +37.8% | | Diluted EPS | $0.42 | $0.31 | +35.5% | Business Performance Analysis The increase in Q1 2025 net sales and operating income was primarily driven by higher sales and gross margin in the Marine Components segment, particularly to the towboat and government markets, with the Security Products segment also contributing to growth - The primary driver for increased sales and operating income was the Marine Components segment, which saw higher sales to towboat and government markets and improved gross margins[2] - Security Products sales also contributed to the growth, with higher sales directed towards the government security market[2] - CompX operates as a leading manufacturer of security products and recreational marine components from three U.S. locations, employing approximately 550 people[3] Risk Factors and Forward-Looking Statements The company outlines numerous forward-looking statements and associated risks that could materially affect future results, including supply and demand fluctuations, raw material cost changes, competition, supply chain disruptions, and global economic and political conditions - The company faces risks related to supply and demand, raw material costs (e.g., zinc, brass, steel), and competition from low-cost manufacturing sources like China[5] - Potential risks also include litigation, intellectual property defense, and challenges with new product development[8] - Broader economic and geopolitical risks that could impact operations include supply chain disruptions, tariffs, cyber-attacks, and global conflicts[8] Consolidated Financial Statements The summary of consolidated operations provides a detailed comparison of financial performance for the three months ended March 31, 2025, versus the same period in 2024, highlighting improvements in gross margin and operating income Summary of Consolidated Operations | (In millions, except per share amounts) | 2024 | 2025 | | :--- | :--- | :--- | | Net sales | $38.0 | $40.3 | | Cost of sales | $28.3 | $28.1 | | Gross margin | $9.7 | $12.2 | | Selling, general and administrative expense | $6.0 | $6.3 | | Operating income | $3.7 | $5.9 | | Interest income | $1.2 | $0.8 | | Income before income taxes | $4.9 | $6.7 | | Income tax expense | $1.2 | $1.6 | | Net income | $3.7 | $5.1 | | Basic and diluted net income per common share | $0.31 | $0.42 |