Name: COMPX INTERNATIONAL INC Q3 2025 Earnings Call
Start: 2025-11-05T21:18:28.000Z

Executive Summary

Q3 revenue of $40.0M and EPS of $0.34 grew year over year on strong Security Products demand in the government security market and higher Marine Components sales to towboat, government and industrial end-markets . Net income was $4.2M, up from $3.5M in Q3’24 .
Sequentially, revenue was stable (Q2: $40.3M; Q3: $40.0M) while operating income stepped down (Q2: $6.3M → Q3: $4.8M) as gross margin dollars declined from $12.9M to $11.0M .
No formal revenue or margin guidance was issued; the Board maintained the regular $0.30 quarterly dividend and did not repeat Q2’s $1.00 special dividend .
No earnings call transcript was available; the quarter’s narrative rests on press releases and the 8-K exhibits .

What Went Well and What Went Wrong

What Went Well
- Year-over-year growth: Net sales rose to $40.0M from $33.6M and EPS to $0.34 from $0.28, with operating income up to $4.8M from $3.3M .
- Demand drivers broadened: “Net sales increased… due to higher Security Products sales primarily to the government security market and higher Marine Components sales to various markets including the towboat, government and industrial markets.” (press release) .
- Consistent capital return: Regular $0.30 quarterly dividend declared for Dec 9, 2025; follows Q2 special $1.00 plus $0.30 regular dividend in August .
What Went Wrong
- Sequential margin pressure: Operating income fell to $4.8M in Q3 from $6.3M in Q2 as gross margin dollars decreased to $11.0M from $12.9M despite similar sales levels .
- No formal forward guidance: Company did not provide revenue, margin, OpEx, or tax rate guidance, limiting near-term estimate recalibration .
- Macro/cost risks remain: Management reiterated exposure to raw material costs (zinc, brass, aluminum, steel), tariffs, and supply chain disruptions in risk disclosures .

Sequential trend (Q1–Q3 2025)

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$40.3	$40.3	$40.0
Operating Income ($M)	$5.9	$6.3	$4.8
Net Income ($M)	$5.1	$5.5	$4.2
Diluted EPS ($)	$0.42	$0.44	$0.34
Gross Margin %	30.2%*	31.9%*	27.6%*
EBIT Margin %	14.6%*	15.7%*	11.9%*

YoY comparison (Q3 2024 vs Q3 2025)

Estimates vs Actuals (S&P Global)

Metric	Period	Actual	S&P Global Consensus Mean	Surprise
Revenue ($M)	Q3 2025	$40.0	N/A (not available)	N/A
EPS ($)	Q3 2025	$0.34	N/A (not available)	N/A

Notes:

Metric	Period	Previous Guidance	Current Guidance (Q3’25)	Change
Revenue, Margins, OpEx, Tax	FY/Quarter	None provided	None provided	Maintained: No formal guidance
Regular Dividend per Share	Q4 2025 Payment	$0.30 (regular cadence in 2025)	$0.30 payable Dec 9, 2025; record Nov 21, 2025	Maintained
Special Dividend per Share	2025	$0.00 prior to Aug 2025	$1.00 special declared Aug 5, 2025	Introduced in Q2’25; none in Q3

Topic	Q1 2025 (Mar 31)	Q2 2025 (Jun 30)	Q3 2025 (Sep 30)	Trend
Security Products demand (gov’t security)	Increased sales primarily to government security market	Increased sales primarily to government security market	Continued higher sales to government security market	Sustained strength
Marine Components demand	Higher sales to towboat & government markets	Higher sales to government & towboat markets	Higher sales to towboat, government & industrial markets	Broadening end-markets
Profitability drivers	Operating income up on higher sales & gross margin	Operating income up on higher sales & gross margin	Operating income up YoY on higher sales & gross margin	Positive YoY; sequentially softer
Raw materials/tariffs risk	Highlighted in risk list	Highlighted in risk list	Highlighted in risk list	Ongoing risk
Capital returns	Regular dividend declared in May 2025	$1.00 special + $0.30 regular (Aug)	$0.30 regular (Nov)	Shareholder-friendly; normalized in Q3

Note: No Q3’25 earnings call transcript was located; themes reflect disclosures in company press releases and the 8‑K exhibits .

“Net sales increased over the comparable 2024 periods due to higher Security Products sales primarily to the government security market and higher Marine Components sales to various markets including the towboat, government and industrial markets.” — Q3’25 press release .
“Operating income increased in the third quarter and for the first nine months of 2025 compared to the same periods in 2024 due to higher sales and gross margin at each of the Security Products and Marine Components segments.” — Q3’25 press release .

The company did not provide an earnings call transcript for Q3’25 in our sources; no Q&A details are available .

S&P Global consensus for Q3’25 revenue and EPS was not available; as a result, no beat/miss framework can be established for this quarter using SPGI consensus. Values and “N/A” status derived from S&P Global.
Actuals: Revenue $40.0M and EPS $0.34 (both per company press release) .

KPI	Q1 2025	Q2 2025	Q3 2025
Weighted Avg Diluted Shares (M)	12.3	12.3	12.3
Employees (approx.)	550	570	558
Dividends Announced	Regular dividend declared May 21, 2025	$1.00 special + $0.30 regular (declared Aug 5, 2025)	$0.30 regular (payable Dec 9, 2025)

YoY growth remained solid, driven by government-linked Security Products demand and broadening Marine Components end-markets (towboat, government, industrial) .
Sequential profitability moderated as gross margin dollars declined from Q2 to Q3 despite stable sales, pressuring operating income .
The capital return profile is supportive: after a Q2 special $1.00 dividend, CIX maintained its $0.30 regular dividend in Q3, signaling continued cash flow resilience .
Absence of formal revenue/margin guidance or a call transcript limits near-term visibility; monitoring government and marine demand indicators remains key .
Cost/tariff exposure remains a watch item; any movement in raw materials or trade policy could impact margins and pricing power .
Near-term trading: dividend support and YoY growth may underpin the stock; sequential margin softness could temper enthusiasm until visibility on Q4 demand/mix improves .
Medium-term: Continued penetration in government security and diversified marine markets, backed by a strong balance sheet and disciplined capital returns, supports a steady compounding thesis if cost inflation is managed .

Footnotes: