EXHIBIT 99.1

FOR IMMEDIATE RELEASE

THE EASTERN COMPANY REPORTS SECOND QUARTER 2026 RESULTS

SHELTON, CT – August 11, 2026 - The Eastern Company (“Eastern” or the “Company”) (NASDAQ:EML), an industrial manufacturer of engineered products and solutions serving commercial transportation, logistics, and other industrial markets, today announced its results of operations for the second fiscal quarter of 2026 ended July 4, 2026. Results for the reported period reflect the June 1, 2026, acquisition of Sungear, LLC and Sinecera, LLC (dba Crown Precision), two California-based precision manufacturers serving the aerospace, defense, and adjacent end markets.

Ryan Schroeder, Eastern’s President and CEO, stated, “Second quarter net sales and gross margin improved sequentially as order execution strengthened and demand improved across our core commercial transportation businesses, though both remained below prior year levels. The unfavorably priced contracts within our returnable packaging transport business, as discussed in our first quarter 2026 earnings call, are now behind us, and new orders are booking at stronger margins. We also expanded into the aerospace and defense markets through the acquisition of Sungear and Crown Precision. These businesses complement our existing portfolio by adding embedded positions within long-cycle programs and exposure to multi-year procurement tailwinds. We ended the quarter with a backlog of $126.2 million, a 45% increase from a year ago, supported by acquired aerospace orders together with strengthening demand for truck mirror assemblies, returnable transport packaging, and latch and handle assemblies.

“We enter the second half of the year with strong momentum and improved visibility across our businesses,” continued Mr. Schroeder. “Our manufacturing expertise supplies key components to some of America’s most admired industrial companies. Heavy-truck build rates have risen, benefiting both Eberhard Manufacturing and Velvac, and bringing Eberhard's largest customer back into the market for mechanical access systems after an extended slowdown, driving meaningful backlog growth. As production volume builds, our product mix improves, and we integrate the acquired operations, we remain focused on disciplined execution to translate this momentum into improving underlying profitability through the remainder of 2026.”

Second Quarter 2026 Financial Results

The following analysis excludes discontinued operations.

Net sales for the second quarter of 2026 decreased 12% to $61.8 million from $70.2 million for the corresponding period in 2025. The decrease in sales was due to lower shipments of truck mirror assemblies, returnable transport packaging and latch and handle assemblies of $5.7 million, $3.4 million, and $0.9 million, respectively, partially offset by $1.7 million in aerospace sales from the acquisition of Sungear and Crown Precision. Net sales for the first six months of 2026 decreased 11% to $121.5 million from $136.1 million for the corresponding period in 2025. Sales decreased in the first six months of 2026 due to lower shipments of returnable transport packaging, truck mirror assemblies and latch and handle assemblies of $10.9 million, $4.5 million, and $0.9 million, respectively, partially offset by a $1.7 million increase in aerospace sales from the acquisition of Sungear and Crown Precision.

Gross margin as a percentage of sales was 20.6% for the second quarter of 2026 and 20.3% for the first six months of 2026, compared to 23.3% and 23.1%, respectively, for the corresponding periods in 2025.

Selling and administrative expenses decreased $2.1 million, or 17.5%, for the second quarter of 2026 compared to the corresponding period in 2025 due to $1.9 million of lower restructuring charges, lower personnel costs of $0.1 million, lower amortization of $0.1 million and other expenses of $0.4 million, partially offset by higher computer expenses of $0.4 million. Selling and administrative expenses decreased $2.9 million, or 12.9% for the first six months of 2026 due to $1.9 million of lower restructuring charges, lower personnel costs of $0.5 million, lower amortization of $0.2 million, lower commission expenses of $0.4 million and other expenses of $0.6 million, partially offset by higher legal expenses of $0.3 million and higher computer expenses of $0.4 million.

Net income from continuing operations for the second quarter of fiscal 2026 was $5.6 million, or $0.94 per diluted share, compared to net income of $2.0 million, or $0.33 per diluted share, for the comparable period in 2025. For the first six months of 2026, net income from continuing operations was $6.3 million, or $1.04 per diluted share, compared to $4.2 million, or $0.69 per diluted share, for the comparable period in 2025.

Net income from continuing operations in both periods included a one-time, non-cash bargain purchase gain of $6.5 million recognized in connection with the recently completed acquisition of Sungear and Crown Precision, which is excluded from the adjusted measures described below.

Adjusted net income from continuing operations (a non-GAAP measure) for the second quarter of fiscal 2026 was $0.9 million, or $0.15 per diluted share, compared to adjusted net income from continuing operations of $3.5 million, or $0.57 per diluted share, for the corresponding period in 2025. For the six months ended July 4, 2026, adjusted net income from continuing operations was $1.6 million, or $0.26 per diluted share, compared to $5.7 million, or $0.93 per diluted share, for the comparable 2025 period.

Adjusted EBITDA from continuing operations (a non-GAAP measure) for the second quarter of 2026 was $3.4 million compared to $6.7 million for the corresponding period in 2025, a decrease of $3.3 million or approximately 49%. For the six months ended July 4, 2026, adjusted EBITDA from continuing operations was $6.4 million compared to $11.7 million in the corresponding 2025 period. See “Non-GAAP Financial Measures” below and the reconciliation table accompanying this release.

During the second quarter of fiscal 2026, total debt increased by $8.8 million to $41.7 million, reflecting borrowings to complete the acquisition of Sungear and Crown Precision. In addition, the Company repurchased 19,529 shares of common stock under its share repurchase program authorized in April 2025. As of July 4, 2026, 256,275 shares remained available for repurchase under the program.

Conference Call and Webcast

The Eastern Company will host a conference call to discuss its results for the second quarter of 2026 and related matters on Wednesday, August 12, 2026, at 9:00AM Eastern Time. Participants can access the conference call by phone at 888-506-0062 (toll-free in the US and Canada) or 973-528-0011 (international), using access code 573591. Participants can also join via the web at https://www.webcaster5.com/Webcast/Page/1757/54302.

About The Eastern Company 

The Eastern Company manages businesses that design, manufacture and sell engineered solutions for industrial markets. The Company operates from locations in the U.S., Canada, Mexico, Taiwan, and China. More information on the Company can be found at www.easterncompany.com.

Safe Harbor for Forward-Looking Statements

Statements contained in this press release that are not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terminology such as “would,” “should,” “could,” “may,” “will,” “expect,” “believe,” “estimate,” “anticipate,” “intend,” “continue,” “plan,” “potential,” “opportunities,” or similar terms or variations of those terms or the negative of those terms. There are many factors that affect the Company’s business and the results of its operations and that may cause the actual results of operations in future periods to differ materially from those currently expected or anticipated. These factors include:

The Company is also subject to other risks identified and discussed in Part I, Item 1A, Risk Factors, and in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the 2025 Form 10-K/A which was filed with the Securities and Exchange Commission on March 19, 2026, and that may be identified from time to time in our quarterly reports on Form 10-Q, current reports on Form 8-K and other filings we make with the SEC.

Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted, and the Company may alter its business strategies to address changing conditions. Also, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses. The Company undertakes no obligation to update, alter, or otherwise revise any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events, or otherwise, except as required by law.

Non-GAAP Financial Measures

The non-GAAP financial measures we provide in this press release should be viewed in addition to, and not as an alternative for, results prepared in accordance with U.S. GAAP.

To supplement the condensed consolidated financial statements prepared in accordance with U.S. GAAP, we have presented Adjusted Net Income from Continuing Operations, Adjusted Earnings Per Share from Continuing Operations, and Adjusted EBITDA from Continuing Operations, which are considered non-GAAP financial measures. The non-GAAP financial measures presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define these non-GAAP financial measures in the same way. These measures are not substitutes for their comparable U.S. GAAP financial measures, such as net sales, net income, diluted earnings per share, or other measures prescribed by U.S. GAAP, and there are limitations to using non-GAAP financial measures.

Adjusted Net Income from Continuing Operations is defined as net income from continuing operations excluding, when incurred, gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. Adjusted Net Income from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis across periods by removing the impact of certain items that management believes do not directly reflect our underlying operating performance.

Adjusted Earnings Per Share from Continuing Operations is defined as earnings per share from continuing operations excluding, when incurred, certain per share gains or losses that we do not believe reflect our ongoing operations, including, for example, the impacts of impairment losses, gains/losses on the sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring costs. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. We believe that Adjusted Earnings Per Share from Continuing Operations provides important comparability of underlying operational results, allowing investors and management to assess operating performance on a consistent basis from period to period.

Adjusted EBITDA from Continuing Operations is defined as net income from continuing operations before interest expense, provision for income taxes, and depreciation and amortization and excluding, when incurred, the impacts of certain losses or gains that we do not believe reflect our ongoing operations, including, for example, impairment losses, gains/losses on sale of subsidiaries, property and facilities, transaction expenses primarily relating to acquisitions and divestitures, factory start-up costs, factory relocation expenses, executive severance, and restructuring expenses. This measure also excludes credit agreement refinancing expenses, when applicable, because we do not believe these expenses are reflective of our ongoing operations. Adjusted EBITDA from Continuing Operations is a tool that can assist management and investors in comparing our performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our underlying operations.

Management uses such measures to evaluate performance period over period, to analyze the underlying trends in our business, to assess our performance relative to our competitors, and to establish operational goals and forecasts that are used in allocating resources. These financial measures should not be considered in isolation from, or as a replacement for, U.S. GAAP financial measures.

We believe that presenting non-GAAP financial measures in addition to U.S. GAAP financial measures provides investors greater transparency to the information used by our management for its financial and operational decision-making. We further believe that providing this information better enables our investors to understand our operating performance and to evaluate the methodology used by management to evaluate and measure such performance.

Investor Relations Contacts

The Eastern Company

Ryan Schroeder or Nicholas Vlahos

203-729-2255

THE EASTERN COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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CONDENSED CONSOLIDATED BALANCE SHEETS

THE EASTERN COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(1) We estimate the tax effect of the items identified to determine a non-GAAP annual effective tax rate applied to the pre-tax amount in order to calculate the non-GAAP provision for income taxes

(a) consists of personnel related and facility costs

(a) consists of personnel related and facility costs