Strategic Portfolio Adjustments from 2025 Drive Enhanced Profitability with Net Income up 36% and EBITDA Reaching 9.7% of Net Sales
LANCASTER, Pa., April 27, 2026 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the first quarter of 2026, delivering strong net sales and improved profitability, reflecting early momentum from the prior-year strategic portfolio actions to strengthen its core boiler business.. The financial statement presentation has been adjusted to reflect the previously announced divestiture of its subsidiaries Thermo Products, LLC (TP) and Norwood Manufacturing, Inc. (NMI) as discontinued operations.
- Net Sales: Net sales for the first quarter of 2026 reached $66.2 million, up 18.7% ($10.4 million) from the first quarter of 2025.
- Solid Gross Profit Margins: Gross profit margin increased to 26.6% in the first quarter of 2026 from 24.5% in the first quarter of 2025.
- Strategic SG&A Investment: Adjusted selling, general, and administrative expenses (SG&A) as a percentage of net sales were 19.8% in the first quarter of 2026 compared to 18.2% for the first quarter of 2025. Although higher on a percentage basis quarter over quarter, SG&A spend for 2026 was in line with expectations of planned initiative spending.
- Net Income: Net income from continuing operations for the first quarter of 2026 was $3.4 million, or $0.72 per diluted share, compared with net income from continuing operations of $2.5 million, or $0.54 per diluted share in the first quarter of 2025.
- Enhanced Profitability Metrics: EBITDA from continuing operations for the first quarter of 2026 was $6.4 million (9.7% of net sales), an increase from $4.8 million (8.6% of net sales) in the first quarter of 2025.
- Increased Shareholder Value: Diluted earnings per share from continuing operations for the first quarter of 2026 improved to $0.72, up from $0.54 in the first quarter of 2025.
"Our first quarter performance reflects the tangible impact of the strategic actions we took in 2025. By sharpening our focus on our core boiler business and higher-efficiency technologies, we're seeing strong sales growth, improved margins, and enhanced profitability," stated Chris Drew, President and CEO of Burnham Holdings. "Just as importantly, the operational discipline and investments we've put in place are positioning us to build on this momentum and deliver sustained value throughout 2026 and beyond."
While recent economic volatility from oil and natural gas markets may indirectly impact near-term margins, and fluctuations in input costs could create additional variability, BHI is well positioned to navigate these dynamics. BHI's strong foundation in its core cast iron business, combined with ongoing investment in high-efficiency technologies, positions the Company to capture continued sales growth as energy price volatility drives demand for a range of heating solutions. In addition, strategic investments made over the past year to further streamline operations are expected to support long-term margin expansion by enhancing engineering efficiency, increasing production throughput, and optimizing the cost structure across BHI's operational product portfolio.
Burnham Holdings, Inc.'s Annual Meeting is being held today virtually via a secure website meeting platform at 11:30 a.m. eastern. A press release regarding today's shareholder voting and the Board of Directors determination regarding declaration of a quarterly dividend will be released later this afternoon.
About Burnham Holdings, Inc.: BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers for residential applications. Additionally, through its various subsidiaries it serves the commercial / industrial boiler markets with a variety of boiler products, rental trailers and boiler room services. BHI is listed on the OTC Exchange under the ticker symbol "BURCA". For more information, please visit www.burnhamholdings.com.
Safe Harbor Statement: This Press Release contains forward-looking statements. Other reports, letters, press releases and investor presentations distributed or made available by the Company may also contain forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates, and projections, and you should therefore not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, variations in weather, changes in the regulatory environment, litigation, customer preferences, general economic conditions, technology, product performance, raw material costs, and increased competition.
Non-GAAP Financial Information: This press release may contain certain non-GAAP financial measures, including, but not limited to, adjusted SG&A, EBITDA, Adjusted EBITDA, Adjusted Net Income and adjusted diluted earnings per share. These non-GAAP financial measures do not provide investors with an accurate measure of, and should not be used as a substitute for, the comparable financial measures as determined in accordance with accounting principles generally accepted in the United States ("GAAP"). The Company believes these non-GAAP financial measures, when read in conjunction with the comparable GAAP financial measures, give investors a useful tool to assess and understand the Company's overall financial performance, because they exclude items of income or expense that the Company believes are not reflective of its ongoing operating performance, allowing for a better period-to-period comparison of operations of the Company. The Company acknowledges that there are many items that impact a company's reported results, and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
Burnham Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 29, March 30,
2026 2025
Net sales $66,183 $55,736
Cost of goods sold 48,551 42,103
Gross profit 17,632 13,633
Selling, general and administrative expenses 13,109 10,153
Operating income 4,523 3,480
Other (expense) / income:
Non-service related pension credit 13 50
Gain on derivative mark to market 22
Interest and investment gain (loss) 216 (6)
Interest expense (309) (239)
Other expense (58) (195)
Income from continuing operations before income tax 4,465 3,285
Income tax expense 1,027 754
Income from continuing operations 3,438 2,531
Income from discontinued operations, net of tax 840
Net income $3,438 $3,371
Earnings per share:
Basic
Income from continuing operations $0.73 $0.54
Income from discontinued operations 0.18
Basic earnings per share $0.73 $0.72
Diluted
Income from continuing operations $0.72 $0.54
Income from discontinued operations 0.18
Diluted earnings per share $0.72 $0.72
Cash dividends per share $0.23 $0.23
Burnham Holdings, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited) (Unaudited)
March 29, December 31, March 30,
ASSETS 2026 2025 2025
Current Assets
Cash and cash equivalents $8,300 $7,657 $6,264
Trade accounts receivable,
net 26,846 29,065 19,222
Inventories, net 44,065 37,442 49,490
Costs in excess of billings 360 507 203
Prepaid expenses and other
current assets 4,772 6,556 2,922
Current assets of
discontinued operations 12,173
Total Current Assets 84,343 81,227 90,274
Property, plant and equipment, net 69,594 69,306 67,642
Lease assets 6,312 6,014 5,633
Other long-term assets 18,418 18,772 21,801
Long-term assets of discontinued operations 5,544
Total Assets $178,667 $175,319 $190,894
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable & accrued
expenses $36,317 $41,243 $27,031
Billings in excess of costs 297 261 1,304
Current liabilities of
discontinued operations 2,281
Current portion of:
Long-term liabilities 87 87 772
Lease liabilities 1,662 1,571 1,312
Long-term debt 184 184 184
Total Current Liabilities 38,547 43,346 32,884
Long-term debt 16,820 11,373 23,883
Lease liabilities 4,650 4,443 4,321
Other long-term liabilities 4,689 4,860 4,581
Deferred income taxes 7,749 7,710 9,295
Long-term liabilities of discontinued operations 441
Shareholders' Equity
Preferred Stock 530 530 530
Class A Common Stock 3,654 3,654 3,642
Class B Convertible Common
Stock 1,293 1,293 1,302
Additional paid-in capital 10,250 10,055 10,918
Retained earnings 105,389 103,031 131,183
Accumulated other
comprehensive loss (5,208) (5,280) (21,028)
Treasury stock, at cost (9,696) (9,696) (11,058)
Total Shareholders' Equity 106,212 103,587 115,489
Total Liabilities and
Shareholders' Equity $178,667 $175,319 $190,894
Burnham Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 29, March 30,
2026 2025
Cash flows from operating activities:
Net income $3,438 $3,371
Income from discontinued operations, net of tax 840
Income from continuing operations $3,438 $2,531
Adjustments to reconcile income from continuing operations
to net cash provided by operating activities:
Depreciation and amortization 1,642 1,277
Deferred income taxes 16 5
Provision for long-term employee benefits 54 (50)
Share-based compensation expense 195 119
Other reserves and allowances 753 (2,202)
Changes in current assets and liabilities:
Decrease in accounts receivable, net 1,221 4,621
Increase in inventories, net (6,623) (2,528)
Decrease in other current assets 1,038 721
Decrease in accounts payable and accrued expenses (3,521) (2,146)
Net cash (used) provided by operating activities of continuing operations (1,787) 2,348
Net cash provided by operating activities of discontinued operations 1
Net cash (used) provided by operating activities (1,787) 2,349
Cash flows from investing activities:
Capital expenditures (1,936) (2,949)
Net cash used by investing activities of continuing operations (1,936) (2,949)
Net cash used by investing activities of discontinued operations (4)
Net cash used by investing activities (1,936) (2,953)
Cash flows from financing activities:
Net activity from revolving credit facility 5,492 1,656
Repayment of term loan (46) (46)
Dividends paid (1,080) (1,072)
Net cash provided by financing activities 4,366 538
Net increase (decrease) in cash and cash equivalents $643 $(63)
Cash and cash equivalents, beginning of period $7,657 $6,327
Net increase (decrease) in cash and cash equivalents 643 (63)
Cash and cash equivalents, end of period $8,300 $6,264
Burnham Holdings, Inc.
Consolidated Statements of Shareholders' Equity
(In thousands)
(Unaudited)
Class B Accumulated
Class A Convertible Additional Other Treasury
Preferred Common Common Paid-in Retained Comprehensive Stock, Shareholders'
Stock Stock Stock Capital Earnings Loss at Cost Equity
Balance at December 31, 2024 $530 $3,633 $1,311 $10,799 $128,884 $(20,820) $(11,058) $113,279
Net income 3,371 3,371
Other comprehensive loss,
net of tax (208) (208)
Cash dividends declared:
Common stock - ($0.23 per share) (1,072) (1,072)
Share-based compensation:
Expense recognition 119 119
Conversion of common stock 9 (9)
Balance at March 30, 2025 $530 $3,642 $1,302 $10,918 $131,183 $(21,028) $(11,058) $115,489
Class B Accumulated
Class A Convertible Additional Other Treasury
Preferred Common Common Paid-in Retained Comprehensive Stock, Shareholders'
Stock Stock Stock Capital Earnings Loss at Cost Equity
Balance at December 31, 2025 $530 $3,654 $1,293 $10,055 $103,031 $(5,280) $(9,696) $103,587
Net income 3,438 3,438
Other comprehensive income,
net of tax 72 72
Cash dividends declared:
Common stock - ($0.23 per share) (1,080) (1,080)
Share-based compensation:
Expense recognition 195 195
Balance at March 29, 2026 $530 $3,654 $1,293 $10,250 $105,389 $(5,208) $(9,696) $106,212
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SOURCE Burnham Holdings, Inc.
