EML · CIK 31107
What The Eastern Company told the SEC could break it.
Trade policy runs through most of what Eastern flagged. Its hardware products depend on steel and aluminum, and 2025 Section 232 measures eliminated country exemptions and raised tariffs to 50% on steel, aluminum and many derivative products, raising costs and tightening supply; separately, it incurred $10.2 million of tariffs on China-sourced products in 2025, up from $2.5 million in 2024, mostly recovered through price increases but still a margin pressure. That exposure is amplified by a manufacturing footprint concentrated in China (Shanghai and Dongguan) and Mexico (a Reynosa maquiladora), putting it squarely in the path of China and Mexico trade and geopolitical risk. It also has modest customer concentration, with one customer at about 13% of accounts receivable in 2025.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Commodity & input dependence
- steel and aluminum (Section 232 tariffs to 50%)high
Eastern's hardware products depend on steel and aluminum; 2025 Section 232 measures eliminated country exemptions and raised tariffs to 50% on steel, aluminum and derivative products, increasing costs and reducing supply availability.
“in 2025 the United States increased its Section 232 steel and aluminum measures, eliminating country exemptions and raising aluminum tariffs to 25% effective March 2025, and since June 2025 has imposed 50% tariffs on steel, aluminum and many covered “derivative” products from nearly all trading partners.”
Regulatory & policy
- tariffs on China-sourced products ($10.2M incurred in 2025)high
Eastern incurred $10.2M of tariffs on China-sourced products in 2025 (up from $2.5M in 2024); most were recovered via price increases but the exposure pressures margins.
“Tariffs incurred during 2025 were $10.2 million from China-sourced products as compared to $2.5 million in 2024.”
SEC filing →As of 2026
Customer concentration
- one customer ~13% of revenue / accounts receivablemedium
One customer was ~13% of total accounts receivable (and ~13% of Engineered Solutions segment revenue, $33.1M) in 2025; while not dependent on one customer, simultaneous deterioration of several large customers could materially hurt results.
“One customer represented 13 % of total accounts receivable for 2025 and one customer represented 14 % of total accounts receivable in 2024.”
SEC filing →As of 2026
Geographic concentration
- manufacturing in China (Shanghai, Dongguan) and Mexico (Reynosa)medium
Eastern's manufacturing footprint includes two Chinese subsidiaries (Shanghai and Dongguan), a Taiwan and Hong Kong subsidiary, and a Reynosa, Mexico maquiladora — exposing it to China/Mexico geopolitical and trade risk.
“two wholly owned Chinese subsidiaries (one located in Shanghai, China, and one located in Dongguan, China), and a wholly owned subsidiary in Reynosa, Mexico.”
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