Executive Summary

Q2 2025 net sales rose 12.2% year over year to $40.3M, operating income increased 24% to $6.3M, and EPS grew to $0.44 from $0.39, supported by stronger demand in government security and towboat markets .
Management announced a special dividend of $1.00 per share alongside the regular $0.30 dividend, providing a clear near-term capital return event .
Sequentially, revenue was flat vs Q1 2025 ($40.3M), while operating income and EPS improved (OI: $6.3M vs $5.9M; EPS: $0.44 vs $0.42), reflecting margin gains across both segments .
No formal financial guidance was issued; focus remained on segment execution and cash returns. Earnings call transcript was not available for Q2 2025 .

What Went Well and What Went Wrong

Demand strength: Higher Security Products sales primarily to the government security market and higher Marine Components sales to government and towboat markets drove revenue and margin expansion .
Margin execution: Operating income increased year over year due to higher sales and gross margin at both segments, indicating effective cost and pricing discipline .
Capital return: Declared a special $1.00 dividend and maintained the regular $0.30 dividend, underscoring confidence in cash generation and balance sheet strength .

Limited disclosure: No segment-level revenue/profit detail was disclosed, constraining deeper mix analysis beyond qualitative commentary .
Interest income headwind: Interest income declined year over year to $0.9M from $1.3M, modestly offsetting operating gains .
Visibility: No financial guidance or transcript available for Q2 2025; investors must rely on press release commentary for trajectory and drivers .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$35.9	$40.3	$40.3
Gross Margin ($USD Millions)	$11.1	$12.2	$12.9
Operating Income ($USD Millions)	$5.1	$5.9	$6.3
Net Income ($USD Millions)	$4.9	$5.1	$5.5
EPS ($USD)	$0.39	$0.42	$0.44
Interest Income ($USD Millions)	$1.3	$0.8	$0.9
Weighted Avg Diluted Shares (Millions)	12.3	12.3	12.3
Gross Margin %	31.1%*	30.2%*	31.9%*
EBIT Margin %	14.2%*	14.6%*	15.7%*

Metric	YoY Change (Q2 2025 vs Q2 2024)	QoQ Change (Q2 2025 vs Q1 2025)	S&P Global Consensus	Actual vs Consensus
Revenue ($USD Millions)	+$4.4 (+12.2%)	$0.0 (flat)	N/A (unavailable via S&P Global)	N/A
EPS ($USD)	+$0.05 (+12.8%)	+$0.02 (+4.8%)	N/A (unavailable via S&P Global)	N/A
Operating Income ($USD Millions)	+$1.2 (+24.0%)	+$0.4 (+6.8%)	N/A	N/A

Note: S&P Global consensus estimates for CIX in Q2 2025 were unavailable; comparisons to Street estimates cannot be made [GetEstimates].

Segment	Q4 2024	Q1 2025	Q2 2025
Security Products	Lower sales due to a government security customer pilot project not continuing into 2024 .	Modest increase, primarily to the government security market .	Strong increase, primarily to the government security market .
Marine Components	Higher sales to towboat and government markets in Q4 vs prior year .	Higher sales primarily to towboat and government markets .	Higher sales to government and towboat markets .

KPI	Q2 2024	Q1 2025	Q2 2025
SG&A ($USD Millions)	$6.0	$6.3	$6.6
Employees	~510	~550	~570

Metric	Period	Previous Guidance	Current Guidance	Change
Regular Dividend	Q3 2025	$0.30/share (declared May 21, payable June 17)	$0.30/share payable Sept 16, record Sept 5	Maintained
Special Dividend	Q3 2025	None	$1.00/share payable Aug 27, record Aug 18	New (raised capital return)
Revenue/Margins/OpEx/Tax	Q2–Q3 2025	N/A	No guidance provided	N/A

Note: Q2 2025 earnings call transcript not available [ListDocuments: earnings-call-transcript returned none].

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Government security market demand	Q4: Security Products down due to end of a government pilot project . Q1: Security Products up modestly, primarily government security .	Security Products up primarily to government security market .	Recovery and growth post pilot-project lapse
Towboat/government marine demand	Q4: Marine Components higher to towboat and government . Q1: Marine Components higher to towboat and government .	Marine Components higher to government and towboat .	Sustained strength across towboat/government
Tariffs/macro and supply chain	Mentioned as ongoing risk factors in Q4 and Q1 .	Continued emphasis on tariffs, global conditions, and supply chain risks .	Persistent macro risk backdrop
Pricing/margins	Q4: Lower gross margin % at Security Products pressured OI . Q1: OI improvement driven by higher marine gross margin .	OI up YoY with higher sales and gross margin in both segments .	Improving margin mix
Litigation/regulatory	Ongoing risk disclosures (e.g., permitted chemicals) .	Continued disclosure of litigation/regulatory risks .	Stable risk disclosure

“Second quarter and year-to-date 2025 net sales increased…due to higher Security Products sales primarily to the government security market and higher Marine Components sales to the government and towboat markets.”
“Operating income increased…due to higher sales and gross margin at each of the Security Products and Marine Components segments.”
“CompX is committed to balancing investment in the growth of its business with stockholder distributions…strong balance sheet and disciplined approach to capital investment has provided this opportunity to return additional cash to our stockholders in 2025…”

Not available; the Q2 2025 earnings call transcript could not be located in company documents or press release repositories [ListDocuments: earnings-call-transcript returned none].

S&P Global consensus estimates for Q2 2025 EPS and revenue were unavailable for CIX; therefore, beat/miss versus Street could not be determined [GetEstimates].
Given reported YoY increases in revenue and operating income, any existing models anticipating deceleration may require updates to reflect sustained government/towboat demand and margin execution .

Revenue and EPS improved YoY with flat sequential sales but better profitability, signaling margin traction amid stable volumes .
Government security and towboat markets remained key drivers; monitor order cadence and potential lumpiness tied to government projects .
The special $1.00 dividend plus regular $0.30 dividend underscores confidence in cash flow and balance sheet strength; near-term capital return is a notable event for the stock .
Interest income decline is a minor headwind; core operational gains outweighed this effect .
Lack of formal guidance and no transcript elevate the importance of upcoming disclosures (e.g., Q3 press release) for trajectory confirmation .
Headline risks persist (tariffs, supply chain, litigation); management continues to flag these as potential disruptors .
Headcount growth (~510 → ~550 → ~570) suggests ongoing investment and scaling to meet demand, particularly in targeted end markets .