EACO Corporation Reports 27.8% Revenue Growth to $142.4 Million in Latest Quarter

EACO Corporation reported significant financial growth in its latest quarterly filing, with net sales reaching $142.4 million for the three months ended May 31, 2026, a 27.8% increase from $111.4 million in the same period last year. The company's gross profit also rose to $44.4 million, up 30.4% from $34.1 million, resulting in a gross profit margin of 31.2%. For the nine months ending May 31, 2026, net sales totaled $371.1 million, a 21.5% increase compared to $305.5 million in the prior year, with gross profit increasing by 25.9% to $115 million.

The company attributed its revenue growth to an expanded sales force, which increased by 48 employees, bringing the total to 491 sales personnel. This expansion, along with improved relationships with vendors and customers, has allowed EACO to better meet customer demand, particularly in the aerospace and defense sectors. The gross profit margin also improved by 1.1% over the nine-month period, reflecting enhanced pricing strategies and inventory management.

Operationally, EACO's total employee headcount rose to 684 from 632 year-over-year, indicating a strategic focus on scaling its workforce to support growth. The company operates 51 sales offices and seven distribution centers across the U.S. and Canada, with additional offices in the Philippines and Mexico. International sales accounted for approximately 13.3% of total revenues for the nine months ended May 31, 2026, up from 11.0% in the previous year, with Canada representing a significant portion of this growth.

Despite the positive financial performance, EACO reported a decrease in cash provided by operating activities, which fell to $4.5 million from $9.4 million in the prior year. This decline was attributed to increased inventory and accounts receivable, reflecting the company's efforts to stock up in anticipation of future demand. The company also noted a net cash outflow from investing activities of $5.5 million, primarily due to purchases of marketable securities and leasehold improvements.

Looking ahead, EACO remains optimistic about its growth trajectory, driven by ongoing investments in its workforce and operational capabilities. The company has extended its line of credit with Citizens Business Bank to $20 million, providing additional liquidity to support its strategic initiatives. Management is focused on enhancing internal controls and addressing identified weaknesses in financial reporting, which they believe will further strengthen the company's financial position and operational efficiency.