EACO Corporation reported a significant increase in financial performance for the fiscal year ending August 31, 2025, with revenues reaching $427.9 million, a 20.1% increase from $356.2 million in the previous fiscal year. The company's gross margin also improved, rising to $128.7 million, or 30.1% of revenues, compared to $106.2 million, or 29.8% of revenues, in fiscal 2024. This growth was attributed to an expanded sales force, which added 28 employees, and increased inventory availability that met rising customer demand.
The company’s operating expenses increased to $86.9 million from $80.9 million, primarily due to higher year-end bonuses linked to record sales and an increase in personnel costs. Notably, EACO settled a class action lawsuit for $7.8 million during the fiscal year, which had been accrued in previous periods. The net income for fiscal 2025 was $32.3 million, significantly up from $15.0 million in fiscal 2024, resulting in basic earnings per share of $6.63, compared to $3.06 the prior year.
EACO's operational footprint expanded with plans to open a new sales office in Chihuahua, Mexico, in December 2025, adding to its existing 51 sales offices and seven distribution centers across the U.S. and Canada, as well as one office in the Philippines. The company served over 10,000 customers, with no single customer accounting for more than 10% of total revenues, indicating a diversified customer base. International sales represented 11.1% of total sales, with Canada and Asia being significant markets.
The company also made strategic investments, including the purchase of its corporate headquarters in Anaheim, California, for $31 million, which was funded through cash reserves and liquidated securities. EACO's liquidity position remains stable, with approximately $738,000 in cash and $30.4 million in marketable securities as of August 31, 2025. The company has a $20 million line of credit, which was unused at the end of the fiscal year, and it remains in compliance with all financial covenants.
Looking ahead, EACO aims to continue its growth trajectory by expanding its sales force and geographic reach while navigating potential risks such as market fluctuations and supply chain challenges. The company is also focused on improving its internal controls over financial reporting, addressing identified weaknesses to enhance operational efficiency and compliance.
About EACO CORP
EACO Corporation is a holding company with a primary focus on its wholly-owned subsidiary, Bisco Industries, a distributor of electronic components and fasteners. Bisco supplies parts to industries such as aerospace, communication, and industrial equipment through a network of sales offices and distribution centers in North America and Asia. The company emphasizes broad product offerings, customized solutions, and strong vendor relationships to serve diverse manufacturing markets.
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