Strategic Portfolio Adjustments Drive Strong Growth and Enhanced Focus for Long-Term Value Creation LANCASTER, Pa., Feb. 19, 2026 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the fourth quarter of 2025, demonstrating continued growth driven by record high net sales and strategic portfolio adjustments aimed at strengthening its core boiler business. The financial statement presentation has been adjusted t ...

Core Insights - Burnham Holdings, Inc. reported strong growth in Q3 2025, driven by strategic portfolio adjustments to enhance its core boiler business and expand commercial and industrial service offerings [1][5][9] Financial Performance - Net sales for Q3 2025 reached $58.3 million, a 5.3% increase from $55.4 million in Q3 2024. Year-to-date net sales climbed to $167.0 million, up from $153.2 million for the first nine months of 2024 [9][12] - Gross profit margin increased to 19.6% in Q3 2025 from 18.2% in Q3 2024, with year-to-date gross margin at 21.9%, up from 21.4% [9][12] - Net income for Q3 2025 was $1.6 million ($0.35 per basic share), compared to $0.6 million ($0.12 per basic share) in Q3 2024. Year-to-date net income was $9.9 million ($2.12 per basic share), more than double from $4.4 million ($0.94 per basic share) in the first nine months of 2024 [9][12] - Adjusted EBITDA for Q3 2025 was $2.9 million (4.9% of net sales), an increase from $2.7 million (4.2% of net sales) in Q3 2024 [9][12] Strategic Initiatives - The company purchased a group annuity contract to transfer approximately $90.0 million of its defined benefit pension obligations to a third-party insurance company, impacting about 1,000 retirees and beneficiaries [2][3] - A non-cash pre-tax non-operating pension settlement charge of approximately $20.8 million is expected to be recognized in Q4 2025 [4] - The company is winding down operations at Crown Boiler to improve manufacturing efficiency and production flexibility, which involved recorded impairment charges totaling $3.3 million during 2025 [5][9] Legal Matters - On October 21, 2025, the New York Court of Appeals denied Burnham LLC's petition for leave to appeal a verdict against the company, resulting in $31.5 million in compensatory damages and $6.5 million in punitive damages [6]

Core Insights - Burnham Holdings, Inc. reported strong growth in Q2 2025, driven by strategic portfolio adjustments aimed at enhancing its core boiler business and expanding commercial and industrial service offerings [1][2][3] Financial Performance - Net sales for Q2 2025 reached $53.0 million, an 8.5% increase ($4.1 million) compared to Q2 2024 [8] - Year-to-date net sales climbed to $108.7 million, up from $97.7 million in the first half of 2024 [8] - Adjusted EBITDA for the first half of 2025 was $9.0 million, representing 7.5% of net sales, an increase from $8.5 million in the first half of 2024 [8] - Adjusted net income for Q2 2025 rose to $1.1 million, compared to $0.8 million in the prior year [8] - Adjusted diluted earnings per share improved to $0.23 in Q2 2025, up from $0.18 in 2024 [8] Strategic Actions - The company divested its subsidiaries Thermo Pride, LLC and Norwood Manufacturing, Inc., closing the transaction for $27.3 million, yielding net cash proceeds of $23.7 million [3][4] - The divestiture and the planned wind down of Crown Boiler operations are part of a unified strategy to optimize performance and focus on high-growth areas [2][4] - Impairment charges of $3.1 million were recorded in Q2 2025 as part of the strategic realignment [2][3] Shareholder Returns - The Board of Directors declared a quarterly common stock dividend of $0.23 per share, payable on September 25, 2025 [5] Operational Efficiency - The company maintained strong gross profit margins of 21.6% in Q2 2025, reflecting operational efficiencies in its commercial businesses [8] - Average debt levels have decreased significantly year-over-year, contributing to lower interest expenses [3][4]