CIX · CompX International Inc.

Gross profit increased to $13.3 million from $12.2 million, expanding the gross margin to 32.7%. This improvement stemmed primarily from a more favorable customer and product mix, particularly at Security Products. The higher gross profit directly contributed to operating income rising 20.1% to $7.0 million from $5.9 million, with operating margin reaching 17.4%. Management noted the increase was driven mainly by the favorable mix at Security Products and, to a lesser extent, higher Marine Components sales volumes. As a percentage of net sales, operating income benefited from these factors alongside improved coverage of operating costs and expenses on the slightly higher sales base.

Net income grew 14.1% to $5.9 million, translating to diluted EPS of $0.48 versus $0.42 last year. These results underscore the company's ability to leverage mix improvements for profitability even with relatively flat top-line growth.

Looking forward, management will continue monitoring customer demand to align production and inventories accordingly. While Q1 benefited from a favorable Security Products mix, ongoing variability in OEM demand, along with raw material costs and economic conditions, present risks. The company maintains stable supply chains and monitors tariff surcharges through pricing adjustments, positioning for modest full-year sales growth with margins comparable to 2025 levels.