Core Insights - The Eastern Company reported a decline in adjusted net income and net sales for the second quarter of 2025, reflecting challenges in the truck mirror assembly market and overall industry demand [1][2][7] Financial Performance - Adjusted net income for Q2 2025 was $0.57 per share, down from $0.65 per share in the previous year [1] - Net sales decreased to $70.2 million, a 3% decline from $72.6 million year-over-year [2] - Net income from continuing operations fell to $2 million from $4.1 million a year earlier [2] - Adjusted EBITDA from continuing operations dropped to $6.7 million from $8 million in the prior-year quarter [4] Margin and Cost Analysis - Gross margin narrowed to 23.3% from 25.4%, primarily due to increased raw material costs associated with in-house sourcing for a mirror project [3] - Selling, general and administrative expenses rose 9.4% to $12.2 million, influenced by restructuring charges [4] Operational Developments - The company experienced a 19% drop in backlog to $87.1 million, driven by decreased orders in specific product lines [4] - Management highlighted operational progress, including SG&A reductions and efficiency gains, despite macroeconomic headwinds [5] Strategic Initiatives - The company completed the sale of Big 3 Mold's ISBM business unit and integrated remaining operations [8] - Share repurchases totaled 31,000 shares in the quarter, with a year-to-date total of 82,000 shares, alongside a net debt reduction of $4 million in Q2 [6]