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Burnham Holdings, Inc. Reports First Quarter 2025 Financial Results

On April 28, 2025, Burnham Holdings, Inc. (OTC-Pink: BURCA) provided an update on its consolidated financial performance for the first quarter that ended on March 30, 2025. The company demonstrated a robust growth trajectory compared to the same quarter last year, showcasing its resilience in the HVAC market.

Financial Highlights

The highlights of Burnham Holdings’ financial results for Q1 2025 include a total net sales figure of $64.8 million, which marks a substantial increase of $8.8 million or about 15.8% from Q1 2024. This growth was largely driven by the impressive performance of both their residential and commercial product lines.

• - Residential Product Sales: Rose by 20.1% compared to the previous year, indicating a strong demand for heating solutions among consumers.
• - Commercial Product Sales: Increased by 2.6%, reflecting steady growth in an important sector.
• - Service and Rentals Growth: The Service and Rentals segment soared by 40.1%, underscoring a shift in consumer preferences towards services that ensure efficient running of HVAC systems.

The gross profit margin for the quarter stood at 25.4%, up from 24.9% in Q1 2024, indicating improvements in operational efficiencies despite facing challenges from product mix and temporary inefficiencies in certain manufacturing setups.

Operating Expenses and Profitability

When looking at the operating expenses, selling, general, and administrative (SGA) expenses remained stable, aligning with company expectations. For Q1 2025, SGA was $11.9 million, translating to 18.4% of sales compared to 17.9% in the previous year. Despite the slight increase in percentage terms, Burnham Holdings maintained control over spending.

The company reported an EBITDA of $6.0 million, or 9.3% of net sales, a slight increase from $5.6 million or 9.9% in Q1 2024. The net income for the first quarter reached $3.4 million, an increase from $3.0 million in the same quarter of 2024, with diluted earnings per share increased to $0.72 from $0.64.

Balance Sheet and Debt Management

Burnham Holdings has been actively managing its debt, achieving an approximate reduction of $3.3 million in average levels of its revolving credit facility. This contributed to an absolute debt decrease of $8.2 million year-over-year. The company showcased discipline in minimizing working capital needs, leading to an inventory reduction of $8.1 million, consequently improving operating cash flow.

In early April, the company announced a strategic decision to wind down manufacturing operations at Crown Boiler in Philadelphia, PA. This move is anticipated to enhance overall production efficiency and flexibility—essential components for supporting the firm’s long-term growth objectives.

Market Outlook

Burnham Holdings believes that the current order flow and backlogs are consistent with expected seasonal patterns, projecting that 2025 will continue along this growth trajectory. The company is poised to capitalize on market dynamics while pursuing operational excellence and financial discipline.

Annual Meeting

Additionally, the company's 2025 Annual Meeting of Shareholders was scheduled for today at 11:30 a.m. EDT, conducted virtually. Important announcements regarding shareholder voting outcomes and potential dividend declarations were anticipated to follow the meeting.

In reviewing its journey, Burnham Holdings, Inc. is a significant player in the HVAC industry, being the parent company of several manufacturers known for their quality boilers, furnaces, and related products, aimed at residential, commercial, and industrial applications. As it progresses, Burnham remains committed to innovative solutions that align with its core mission: delivering efficiency and quality to customers across various sectors.

For comprehensive information on their financial performance and strategic shifts, you can visit their official website at www.burnhamholdings.com.