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]