What CompX International Inc. told the SEC could break it.

CompX's products rely on zinc and brass (Security Products locks) and stainless steel and aluminum (Marine Components); total material costs including purchased components were ~43% of cost of sales in 2025, exposing margins to commodity-price volatility.

“Our primary raw materials are: ● Security Products - zinc and brass (for the manufacture of locking mechanisms). ● Marine Components - stainless steel (for the manufacture of exhaust headers and pipes and wake enhancement systems), aluminum (for the manufacture of throttles and trim tabs) and other components. These raw materials are purchased from several suppliers, are readily available from numerous sources and accounted for approximately 14% of our total cost of sales for 2025. Total material costs, including purchased components, represented approximately 43% of our cost of sales in 2025.”

CompX's single largest customer, the United States Postal Service, was 26% of consolidated net sales in 2025 (within its Security Products segment), and its top ten customers were ~52% of net sales — concentrating revenue in a few OEM/government buyers.

“We sell to a diverse customer base with only one customer representing 10% or more of our consolidated net sales in 2025 (United States Postal Service representing 26%). Our largest ten customers accounted for approximately 52% of our consolidated net sales in 2025.”

CompX's Security Products results swing with the government security market — 2025 sales rose on $9.9M higher government-security sales, while 2024 fell because a 2023 government pilot project did not recur — making a large part of the segment dependent on episodic government demand (largely USPS).

“Security Products net sales increased 5% to $120.7 million in 2025 compared to $115.2 million in 2024. Relative to prior year, the increase in sales was primarily due to $9.9 million higher sales to the government security market”

CompX sources electronic and other components from China/Asia, began incurring tariff-related surcharges in 2025 (including from US-based suppliers), and new/increased U.S. tariffs on China, Mexico or other countries could raise its supply costs and pressure liquidity.

“the imposition of new tariffs or increases in existing tariffs by the U.S. government on imports from China, Mexico or other countries from which we import raw materials and other components could increase our supply costs. Increases in our supply costs may decrease our liquidity or negatively impact our financial condit”