CompX(CIX) - 2025 Q2 - Quarterly Results

CompX Q2 2025 Earnings Release Financial Performance Highlights CompX International Inc. reported significant year-over-year growth for the second quarter and first six months of 2025 Second Quarter 2025 Performance Net sales, operating income, and net income all showed significant year-over-year growth in the second quarter of 2025 Q2 Financial Performance (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $40.3M | $35.9M | +12.3% | | Operating Income | $6.3M | $5.1M | +23.5% | | Net Income | $5.5M | $4.9M | +12.2% | | EPS (basic and diluted) | $0.44 | $0.39 | +12.8% | Year-to-Date 2025 Performance The first six months of 2025 saw continued positive momentum with notable increases in sales, operating income, and net income First Half (H1) Financial Performance (YoY Comparison) | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $80.6M | $73.9M | +9.1% | | Operating Income | $12.2M | $8.8M | +38.6% | | Net Income | $10.6M | $8.6M | +23.3% | | EPS (basic and diluted) | $0.86 | $0.70 | +22.9% | Business and Operational Overview Revenue growth was driven by strong performance in both the Security Products and Marine Components segments - Sales growth was driven by higher Security Products sales to the government security market[3] - Increased Marine Components sales to the government and towboat markets also contributed to revenue growth[3] - Operating income improvement was a result of both higher sales and better gross margins across both business segments[3] - CompX is a leading manufacturer of security products and recreational marine components, operating from three U.S. locations with approximately 570 employees[4] Risk Factors and Forward-Looking Statements The company's forward-looking statements are subject to risks from supply and demand, raw material costs, competition, and global conditions - Future supply and demand for the company's products[6] - Changes in raw material costs (such as zinc, brass, steel) and the ability to pass these costs to customers[6][8] - Price and product competition from low-cost manufacturing sources, such as China[8] - Potential disruptions from general global economic and political conditions, including supply chain issues, trade disputes, and global conflicts[8] - Technology-related disruptions, including cyber attacks that could impact operations or the supply chain[8] Summary of Consolidated Operations The report provides a detailed unaudited consolidated income statement for the second quarter and first half of 2025 and 2024 Consolidated Operations (In millions, except per share amounts) | | Three months ended June 30, | Six months ended June 30, | | :--- | :--- | :--- | | | 2024 | 2025 | 2024 | 2025 | | Net sales | $35.9 | $40.3 | $73.9 | $80.6 | | Cost of sales | 24.8 | 27.4 | 53.1 | 55.5 | | Gross margin | 11.1 | 12.9 | 20.8 | 25.1 | | SG&A expense | 6.0 | 6.6 | 12.0 | 12.9 | | Operating income | 5.1 | 6.3 | 8.8 | 12.2 | | Interest income | 1.3 | 0.9 | 2.5 | 1.7 | | Income before income taxes | 6.4 | 7.2 | 11.3 | 13.9 | | Income tax expense | 1.5 | 1.7 | 2.7 | 3.3 | | Net income | $4.9 | $5.5 | $8.6 | $10.6 | | EPS (basic and diluted) | $0.39 | $0.44 | $0.70 | $0.86 |