Compx International Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 5 May 2026: press release. The quarter’s numbers.

Key takeaways

Net sales increased slightly: Net sales were $40.6 million, against $40.3 million a year earlier. Source
Operating income increased to $7.1 million: Operating income was $7.1 million, against $5.9 million a year earlier. Source
Marine industrial sales increased: Marine Components sales to the industrial market were higher than a year earlier. Source
Security Products sales declined: Security Products sales were lower than a year earlier, partly offsetting the Marine Components increase. Source
Security Products margin rose on mix: Gross margin at Security Products was higher, which the company attributed to a more favorable customer and product mix. Source
Net income increased to $5.9 million: Net income was $5.9 million, against $5.1 million a year earlier. Source

“Operating income increased in the first quarter of 2026 compared to the same period in 2025 primarily due to higher gross margin at Security Products”
Compx International Inc., press release

Results and growth drivers

Net sales increased slightly: Net sales were $40.6 million, against $40.3 million a year earlier. Source
Operating income increased to $7.1 million: Operating income was $7.1 million, against $5.9 million a year earlier. Source
Interest income declined: Interest income was $.7 million, against $.8 million a year earlier. Source

Segment sales by market

Marine industrial sales increased: Marine Components sales to the industrial market were higher than a year earlier. Source
Security Products sales declined: Security Products sales were lower than a year earlier, partly offsetting the Marine Components increase. Source
Marine sales added to operating income: Higher Marine Components sales also contributed to the operating income increase, to a lesser extent than Security Products margin. Source

“First quarter 2026 net sales increased over the comparable 2025 period due to higher Marine Components sales to the industrial market partially offset by lower Security Products sales”
Compx International Inc., press release

Segment margins and mix

Security Products margin rose on mix: Gross margin at Security Products was higher, which the company attributed to a more favorable customer and product mix. Source
Q4 2025 margins improved in both segments: In the fourth quarter of 2025, gross margins improved at Security Products and Marine Components, and higher Marine sales also added to operating income.
Full-year 2025 margin gains across segments: For full-year 2025, operating income increased on higher sales and improved gross margins at both segments.

Costs, margins and tax

Gross margin increased on lower cost of sales: Gross margin was $13.3 million, against $12.2 million, as cost of sales fell to $27.3 million from $28.1 million. Source
SG&A expense slightly lower: Selling, general and administrative expense was $6.2 million, against $6.3 million a year earlier. Source
Tax expense increased: Income tax expense was $1.9 million, against $1.6 million a year earlier. Source

Net income and per-share figures

Net income increased to $5.9 million: Net income was $5.9 million, against $5.1 million a year earlier. Source
Diluted share count unchanged: Weighted average diluted shares were 12.3 million in both periods. Source
Basic and diluted EPS increased: Basic and diluted net income per share was $.48, against $.42 a year earlier. Source

Employees and business profile

Company describes its business: The company describes itself as a manufacturer of security products and recreational marine components. Source
About 560 employees in three locations: The company operates from three U.S. locations and employs approximately 560 people. Source
Headcount about 549 in March release: The fourth quarter 2025 release gave headcount of approximately 549 people.

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 FIRST QUARTER 2026 RESULTS

DALLAS, TEXAS … May 5, 2026 … CompX International Inc. (NYSE American: CIX) announced today net sales of $40.6 million for the first quarter of 2026 compared to $40.3 million in the same period of 2025. Operating income was $7.1 million in the first quarter of 2026 compared to $5.9 million in the same period of 2025. Net income was $5.9 million, or $.48 per basic and diluted common share, for the first quarter of 2026 compared to $5.1 million, or $.42 per basic and diluted common share, in the same period of 2025.

First quarter 2026 net sales increased over the comparable 2025 period due to higher Marine Components sales to the industrial market partially offset by lower Security Products sales. Operating income increased in the first quarter of 2026 compared to the same period in 2025 primarily due to higher gross margin at Security Products resulting from a more favorable customer and product mix and, to a lesser extent, the impact of higher sales at Marine Components.

CompX is a leading manufacturer of security products and recreational marine components. It operates from three locations in the U.S. and employs approximately 560 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;
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.

SUMMARY OF CONSOLIDATED OPERATIONS

(In millions, except per share amounts)

	Three months ended
	March 31,
	2025		2026
	(unaudited)
Net sales		$40.3		$40.6
Cost of sales		28.1		27.3
Gross margin		12.2		13.3
Selling, general and administrative expense		6.3		6.2
Operating income		5.9		7.1
Interest income		.8		.7
Income before income taxes		6.7		7.8
Income tax expense		1.6		1.9
Net income		$5.1		$5.9
Basic and diluted net income per common share	$	.42	$	.48
Weighted average diluted common shares outstanding		12.3		12.3

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