#United States #financial results #Lancaster #Burnham Holdings #Boilers

Burnham Holdings, Inc. Reports Strong Third Quarter Growth for 2025

Introduction
Burnham Holdings, Inc. (OTC-Pink: BURCA), a leading manufacturer of boilers and related HVAC products, recently released its consolidated financial results for the third quarter of 2025. The results highlight a significant growth trajectory driven by strategic portfolio adjustments aimed at reinforcing its core boiler business and expanding its service offerings.

Financial Highlights

The latest financial report revealed an increase in net sales, which climbed to $58.3 million, marking a 5.3% increase (approximately $2.9 million) compared to the same period in 2024. Year-to-date net sales have also risen to $167.0 million, up from $153.2 million in the first three quarters of the previous year.

Gross Profit Margins

Burnham Holdings saw an improvement in its gross profit margin, which increased to 19.6% in Q3 2025, up from 18.2% in Q3 of the previous year. The year-to-date figures reflect a gross margin of 21.9%, slightly up from 21.4% in 2024. This growth can be attributed to ongoing operational efficiencies within the Commercial sector.

Administrative Expenses

In alignment with planned initiatives to support long-term growth, the company's selling, general, and administrative expenses (SGA) saw a rise of 5.7% in Q3 and 13.7% over the first nine months of 2025.

Profitability Metrics

Net income reported for Q3 2025 was $1.6 million, translating to $0.35 per basic share and $0.34 per diluted share. This indicates a substantial increase compared to the net income of $0.6 million ($0.12 per share) from the same quarter last year. The year-to-date net income reached $9.9 million, a significant rise from $4.4 million in 2024.

Additionally, the adjusted EBITDA for Q3 was $2.9 million, constituting 4.9% of net sales, up from 4.2% in the previous year. For the first nine months of 2025, adjusted EBITDA reached $11.9 million, improving from $11.3 million in the same period last year.

Shareholder Value and Pension Management

Burnham Holdings also focused on increasing shareholder value with adjusted diluted earnings per share for Q3 at $0.20, up from $0.12 in 2024. Year-to-date, this figure reached $1.15, compared to $0.93 in the same period last year.

On October 7, 2025, the company announced a strategic move to de-risk its pension obligations by purchasing a group annuity contract to transfer a portion of its defined benefit pension liabilities to a third-party insurance company. This transaction involves approximately $90.0 million worth of pension obligations and will begin on January 1, 2026.

Operational Adjustments

In line with announcements made earlier in the year, the decision to wind down operations at the Crown Boiler subsidiary is seen as a necessary approach toward optimizing Burnham’s operational footprint and enhancing overall manufacturing efficiency. Despite an impairment charge of $3.3 million due to this decision, it aligns with the company's growth strategy focused on promising opportunities.

Litigation Update

As part of its ongoing challenges, the company faced a legal setback when the New York Court of Appeals denied a petition by Burnham LLC, a subsidiary, regarding a previous verdict. The total verdict amounted to $31.5 million in compensatory damages along with $6.5 million for punitive damages. Moving forward, Burnham will be exploring all legal options in response to this ruling.

Conclusion
The positive financial results from Burnham Holdings, Inc. reflect the effectiveness of the company's strategic adjustments. With a focus on enhancing operational efficiencies and shareholder value, the firm is well-positioned for continued growth in the challenging economic landscape. As stated by CEO Chris Drew, the execution of operating strategies alongside de-risking pension obligations promises a brighter financial horizon for the company, ensuring long-term value creation for its shareholders.