0001104659-26-023463
SEC filingCompX International Inc. reported improved financial performance for fiscal year 2025. Net sales increased 8% year-over-year to $158.3 million, recovering from a 10% decline in 2024. Gross margin improved significantly to $48.2 million (30.4% of net sales) from $41.3 million in 2024, driven by higher sales and improved gross margin at both the Security Products and Marine Components segments. Operating income increased 33% to $22.6 million, representing 14.3% of net sales. Net income reached $19.5 million, with earnings per share of $2.00. The company generated $22.9 million in operating cash flow and paid $27.1 million in dividends. Key growth drivers included higher Security Products sales to the government security market and increased Marine Components sales to towboat, government, and industrial markets.
CompX International Inc. demonstrated strong recovery in fiscal year 2025 with net sales increasing 8% to $158.3 million, reversing the 10% decline experienced in 2024. The company's profitability improved significantly, with gross margin expanding to $48.2 million (30.4% of net sales) from $41.3 million (28.3%) in 2024. Operating income grew 33% to $22.6 million, representing 14.3% of net sales compared to 11.7% in the prior year. Net income reached $19.5 million, with earnings per share of $2.00. The performance improvement was driven by higher sales and improved gross margins across both business segments.
Net sales increased $12.4 million in 2025 compared to 2024, primarily due to higher Security Products sales to the government security market and increased Marine Components sales to various markets including towboat, government, and industrial markets. The Security Products segment manufactures mechanical and electrical cabinet locks and locking mechanisms used in postal, recreational transportation, office furniture, cabinetry, tool storage, and healthcare applications. The Marine Components segment produces wake enhancement systems, stainless steel exhaust systems, gauges, throttle controls, trim tabs, and related hardware for recreational marine and other industries. The company's ten largest customers accounted for approximately 52% of consolidated net sales, with a single customer representing 26% of total sales.
Gross margin as a percentage of net sales improved to 30.4% in 2025 from 28.3% in 2024, driven by a more favorable customer and product mix, particularly within Security Products, and increased coverage of fixed costs due to higher sales across both segments. Cost of sales increased to $110.1 million (69.6% of net sales) from $104.6 million (71.7%) in 2024. Material costs represented approximately 43% of cost of sales, with commodity-related raw materials accounting for approximately 14%. Operating costs and expenses increased to $25.6 million (16.2% of net sales) from $24.3 million (16.7%) in 2024, primarily due to higher employee-related costs including salaries, benefits, and medical expenses.
The company generated $22.9 million in net cash from operating activities, compared to net income of $19.5 million. Key adjustments included $3.7 million in depreciation and amortization and $1.9 million in noncash interest income. Investing activities used $2.4 million in cash, primarily for capital expenditures of $3.7 million. Financing activities included dividend payments of $27.1 million. The balance sheet shows total assets of $156.2 million, including $54.1 million in cash and cash equivalents, $30.4 million in inventories, and $23.7 million in net property and equipment. Total liabilities were $17.5 million, with stockholders' equity of $138.6 million.
The company expects raw material prices for zinc, brass, aluminum, stainless steel, and other manufacturing materials in 2026 to be more volatile compared to 2025. Processing and conversion costs for raw materials remain elevated due to labor, transportation, and energy costs and are not expected to decrease. Key risk factors include dependence on significant customers (with the ten largest accounting for 52% of sales), competitive pressures from lower-cost Asian manufacturers, potential supply chain disruptions, raw material price volatility, and climate change regulations that could increase production costs. The company continues to focus on developing innovative product features and diversifying into new markets to drive growth.