CIX earnings analysis
What we found in CIX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CompX delivered a strong Q2 2026, with revenue of $43.614 million up 8.0% year over year and operating income of $8.921 million up 41.2%, driven by higher sales and materially improved gross margin. Both segments grew, led by Security Products, while liquidity remained strong with $52.4 million of cash and lower first-half capex. Reported EPS and absolute operating cash flow were not included in the provided filing extract, so EPS and free cash flow are null.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated sequentially and year over year
- Q2 net sales were $43.614 million, up $3.248 million (8.0%) from $40.366 million a year earlier and up $3.045 million (7.5%) sequentially from implied Q1 2026 sales of $40.569 million.
- Strong margin expansion drove operating leverage
- Gross margin expanded 370 basis points year over year to 35.6% from 31.9%, while operating margin increased 480 basis points to 20.4% from 15.6%. Operating income rose $2.601 million (41.2%) to $8.921 million.
- Security Products led growth
- Security Products sales increased $2.665 million to $33.348 million, with gains including $0.9 million in healthcare, $0.7 million in transportation, $0.5 million through distributors, and $0.4 million in tool storage.
- Industrial demand lifted Marine Components
- Marine Components sales increased $0.583 million to $10.266 million. A $1.6 million industrial-market increase more than offset a $1.0 million decline in government-market sales.
- Liquidity remained substantial and capex moderated
- Cash and cash equivalents were $52.4 million at June 30, 2026. First-half operating cash flow increased $1.5 million year over year, while capital expenditures declined to $1.5 million from $2.2 million.
- Management outlook remains constructive
- Management expects full-year 2026 sales, gross margin and operating margin to exceed 2025 levels, supported by healthcare, transportation and tool-storage demand in Security Products and aeroderivative industrial demand in Marine Components.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Input costs and tariffs could pressure margins
- Management says second-half 2026 margins may be challenged by imported-component tariffs, shipping costs and domestic raw-material inflation; cost increases have persisted from Q2 2025 through Q2 2026. The Q2 gross margin was 35.6%, making cost recovery and mix important to sustaining profitability.
- Higher receivable days may weigh on working capital
- Consolidated days sales outstanding increased to 41 days at June 30, 2026 from 33 days at December 31, 2025. Marine Components DSO rose to 46 days from 26 days, although management attributes the change primarily to sales-and-collection timing.
- No risk-factor updates versus the 2025 annual report
- No new or revised risk factors were provided in Item 1A; the filing incorporates the risk factors in the 2025 Annual Report. This limits evidence of a filing-specific change in disclosed risk exposure.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 35.6%
- Operating margin
- 20.4%
- Segment
- Security Products: Q2 2026 net sales $33.348 million, up 9% year over year; operating income $7.989 million and operating margin 24.0%.
- Segment
- Marine Components: Q2 2026 net sales $10.266 million, up 6% year over year; operating income $2.769 million and operating margin 27.0%.
What they said about what is next.
No numerical revenue or EPS guidance was provided in the 10-Q. Management expects 2026 net sales, gross margin, and operating margin to exceed 2025 levels; it expects approximately $5.5 million of 2026 capital expenditures.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- CompX reported its Q1 2026 results with a slight increase in revenue compared to the previous year but a decline in gross margin percentages despite improved operating income. The mixed performance in its Security…
- 10-K · March 4, 2026
- CompX reported a recovery in 2025 with net sales of $158.285 million (up 8% vs $145.941 million in 2024), improved gross margin (30.4% in 2025 vs 28.3% in 2024) and operating income of $22.6 million. The company…
- 10-K · March 5, 2025
- CompX reported fiscal 2024 net sales of $145.941 million (down 10% vs. 2023) and net income of $16.587 million (diluted EPS $1.35). Operating income fell to $17.0 million in 2024 from $25.4 million in 2023, driven by…
- 10-Q · May 7, 2024
- CompX reported first-quarter net sales of $37,971,000 (Q1 2023: $41,151,000), with gross margin declining to $9,667,000 (25.5% of sales) and operating income falling to $3,715,000 (9.8% of sales). Diluted EPS declined…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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