Ross Davisson's questions to EASTERN (EML) leadership • Q1 2025
Question
Ross Davisson of Banneton Capital inquired about the outlook for the returnable packaging business amid supply chain shifts and also asked for clarity on the recent decline in gross margin.
Answer
CEO Ryan Schroeder and CFO Nicholas Vlahos addressed the questions. Schroeder noted that while the returnable packaging market has been quiet, the Big 3 Precision business is well-positioned to benefit from onshoring trends due to its domestic supply chain and is prepared for a potential release of pent-up demand. Vlahos added that the recent gross margin decline to 22.4% was influenced by sales mix, and he anticipates improvement as sales of higher-margin products increase, complemented by ongoing cost reduction efforts.