Compx International Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 4 March 2026: press release. The quarter’s numbers.

Key takeaways

Fourth-quarter sales and profit: Fourth-quarter net sales were $37.7 million, down from $38.4 million a year earlier. Operating income rose to $5.6 million from $4.9 million. Net income was $4.7 million, or $.38 per diluted share, against $4.5 million, or $.37. Source
Full-year sales and operating income rose: Full-year net sales were $158.3 million, against $145.9 million in 2024. Full-year operating income was $22.6 million, against $17.0 million. Source
Healthcare sales fell in Security Products: Security Products sales to the healthcare market were lower in the fourth quarter, which the company cited as the main reason net sales decreased year on year. Source
Marine sales and margins lifted operating income: Fourth-quarter operating income rose mainly on higher Marine Components sales. Gross margins also improved at both the Security Products and Marine Components segments. Source
Government security drove full-year sales: Full-year net sales rose mainly on higher Security Products sales to the government security market. Source
Gross margins improved in both segments: Gross margin was $12.1 million in the fourth quarter against $11.0 million, and $48.2 million for the year against $41.3 million, with gains at both segments. Source

“Fourth quarter 2025 net sales decreased over the comparable 2024 period predominantly due to lower Security Products sales to the healthcare market, partially offset by higher Marine Components sales to the industrial market.”
Compx International Inc., press release

Results and growth drivers

Fourth-quarter sales and profit: Fourth-quarter net sales were $37.7 million, down from $38.4 million a year earlier. Operating income rose to $5.6 million from $4.9 million. Net income was $4.7 million, or $.38 per diluted share, against $4.5 million, or $.37. Source
Full-year sales and operating income rose: Full-year net sales were $158.3 million, against $145.9 million in 2024. Full-year operating income was $22.6 million, against $17.0 million. Source
Full-year net income and EPS higher: Full-year net income was $19.5 million, or $1.58 per basic and diluted share, against $16.6 million, or $1.35 in 2024. Source

Segments and operating drivers

Healthcare sales fell in Security Products: Security Products sales to the healthcare market were lower in the fourth quarter, which the company cited as the main reason net sales decreased year on year. Source
Marine sales and margins lifted operating income: Fourth-quarter operating income rose mainly on higher Marine Components sales. Gross margins also improved at both the Security Products and Marine Components segments. Source
Industrial sales partly offset Security decline: Higher Marine Components sales to the industrial market partly offset the lower Security Products sales in the fourth quarter. Source

“Operating income for the full year of 2025 increased compared to 2024 due to higher sales and improved gross margins at each of the Security Products and Marine Components segments.”
Compx International Inc., press release

Products and customer markets

Two product lines reported: The company described itself as a manufacturer of security products and recreational marine components, reporting two segments: Security Products and Marine Components. Source
Government security drove full-year sales: Full-year net sales rose mainly on higher Security Products sales to the government security market. Source
Marine sales rose across three markets: For the full year, Marine Components sales rose across the towboat, government and industrial markets, according to the release. Source

Costs, margins and pricing

Gross margins improved in both segments: Gross margin was $12.1 million in the fourth quarter against $11.0 million, and $48.2 million for the year against $41.3 million, with gains at both segments. Source
Cost of sales rose for the year: Cost of sales was $25.6 million in the fourth quarter, down from $27.4 million, and $110.1 million for the year, up from $104.6 million. Source
Selling and admin expense increased: Selling, general and administrative expense was $6.5 million in the fourth quarter, against $6.1 million, and $25.6 million for the year, against $24.3 million. Source

Interest, tax and share count

Interest income declined: Interest income was $0.7 million in the fourth quarter, down from $0.9 million, and $3.2 million for the year, down from $4.7 million. Source
Income tax expense rose: Income tax expense was $1.6 million in the fourth quarter, up from $1.3 million, and $6.3 million for the year, up from $5.1 million. Source
Diluted share count unchanged: Weighted average diluted common shares were 12.3 million in each period shown. Source

People and locations

Headcount fell to about 549: The release says the company employs approximately 549 people, down from approximately 558 in the prior quarter's release. Source
Three U.S. operating locations: The company operates from three locations, all in the United States. Source
Treasurer named as investor contact: Bryan A. Hanley, Senior Vice President and Treasurer, is named as the investor relations contact. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

COMPX REPORTS FOURTH QUARTER 2025 RESULTS

DALLAS, TEXAS … March 4, 2026 … CompX International Inc. (NYSE American: CIX) announced today net sales of $37.7 million for the fourth quarter of 2025 compared to $38.4 million in the same period of 2024. Operating income was $5.6 million in the fourth quarter of 2025 compared to $4.9 million in the same period of 2024. Net income was $4.7 million, or $.38 per basic and diluted common share, for the fourth quarter of 2025 compared to $4.5 million, or $.37 per basic and diluted common share, in the same period of 2024.

Net sales for the year ended December 31, 2025 were $158.3 million compared to $145.9 million in the previous year. Operating income was $22.6 million for the year ended December 31, 2025 compared to $17.0 million in 2024. Net income for the year ended December 31, 2025 was $19.5 million, or $1.58 per basic and diluted common share, compared to $16.6 million, or $1.35 per basic and diluted common share, for the same period in 2024.

Fourth quarter 2025 net sales decreased over the comparable 2024 period predominantly due to lower Security Products sales to the healthcare market, partially offset by higher Marine Components sales to the industrial market. Operating income increased in the fourth quarter of 2025 compared to the same period in 2024 primarily due to higher sales at Marine Components as well as improved gross margins at each of the Security Products and Marine Components segments.

Net sales increased for the full year of 2025 compared to the same period in 2024 primarily due to higher Security Products sales to the government security market and higher Marine Components sales to various markets including the towboat, government and industrial markets. Operating income for the full year of 2025 increased compared to 2024 due to higher sales and improved gross margins at each of the Security Products and Marine Components segments.

CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 549 people.

Forward-Looking Statements

The statements in this press release relating to matters that are not historical facts are forward-looking statements that represent management’s belief and assumptions based on currently available information. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot give any assurances that these expectations will be correct. Such statements, by their nature, involve substantial risks and uncertainties that could significantly impact expected results, and actual future results could differ materially from those predicted. While it is not possible to identify all factors, we continue to face many risks and uncertainties.

The factors that could cause our actual future results to differ materially include, but are not limited to, the following:

Future supply and demand for our products;
Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs), including as a result of additional or changed tariffs on imported raw materials, and our ability to pass those costs on to our customers or offset them with reductions in other operating costs;
Price and product competition from low-cost manufacturing sources (such as China);
The impact of pricing and production decisions;
Customer and competitor strategies including substitute products;
Our ability to retain key customers;
Uncertainties associated with new product development and the development of new product features;
Pending or possible future litigation (such as litigation related to our use of certain permitted chemicals in our production process) or other actions;
Our ability to protect or defend our intellectual property rights;
Potential difficulties in integrating future acquisitions;
Decisions to sell operating assets other than in the ordinary course of business;
Environmental matters (such as those requiring emission and discharge standards for existing and new facilities);
The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;
Government laws and regulations and possible changes therein including new environmental, health and safety, sustainability or other regulations;
General global economic and political conditions that disrupt our supply chain, reduce demand or perceived demand for component products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises);
Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);
The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes (including tariffs imposed by the U.S. government on imports from China and Mexico);
Technology related disruptions (including, but not limited to, cyber attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue

operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders; and

Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts.

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

Bryan A. Hanley

SUMMARY OF CONSOLIDATED OPERATIONS

(In millions, except per share amounts)

	Three months ended				Year ended
	December 31,				December 31,
	2024		2025		2024	2025
	(Unaudited)
Net sales		$38.4		$37.7	$145.9	$158.3
Cost of sales		27.4		25.6	104.6	110.1
Gross margin		11.0		12.1	41.3	48.2
Selling, general and administrative expense		6.1		6.5	24.3	25.6
Operating income		4.9		5.6	17.0	22.6
Interest income		.9		.7	4.7	3.2
Income before income taxes		5.8		6.3	21.7	25.8
Income tax expense		1.3		1.6	5.1	6.3
Net income		$4.5		$4.7	$16.6	$19.5
Basic and diluted net income per common share	$	.37	$	.38	$1.35	$1.58
Weighted average diluted common shares outstanding		12.3		12.3	12.3	12.3

Contacts
Senior Vice President and Treasurer
Tel. 972-233-1700
COMPX INTERNATIONAL INC.