Burnham Holdings, Inc. Announces Third Quarter 2025 Financial Results

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October 23, 2025 6:09 PM EDT

Strategic Portfolio Adjustments Drive Strong Growth and Enhanced Focus for Long-Term Value Creation

LANCASTER, Pa., Oct. 23, 2025 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our") today reported its consolidated financial results for the third quarter of 2025, demonstrating robust growth driven by strategic portfolio adjustments aimed at strengthening its core boiler business and expanding high-growth commercial and industrial service offerings. The financial statement presentation has been adjusted to reflect the previously announced divestiture of its subsidiaries Thermo Pride, LLC (TP) and Norwood Manufacturing, Inc. (NMI) as discontinued operations.

  • Strong Top-Line Growth: Net sales for the third quarter of 2025 reached $58.3 million, a 5.3% increase ($2.9 million) compared to the third quarter of 2024. Year-to-date net sales climbed to $167.0 million, up from $153.2 million for the first nine months of 2024.
  • Solid Gross Profit Margins: Gross profit margin increased to 19.6% in the third quarter of 2025 from 18.2% in the third quarter of 2024, reflecting continued operational efficiencies in the Commercial businesses. Year-to-date gross margin was 21.9%, up from 21.4% for the first nine months of 2024.
  • Strategic SG&A Investment: Selling, general, and administrative expenses (SG&A) increased by 5.7% in the third quarter and 13.7% in the first nine months of 2025, aligning with planned initiative spending to support long-term growth.
  • Robust Earnings: Net Income was $1.6 million ($0.35 per basic share and $0.34 per diluted share), up from $0.6 million ($0.12 per basic and diluted share) in the third quarter of 2025. Year-to-date net income was $9.9 million ($2.12 per basic share and $2.10 per diluted share), more than double from $4.4 million ($0.94 per basic share and $0.93 per diluted share) for the first nine months of 2024.
  • Enhanced Profitability Metrics: Adjusted EBITDA for the third quarter of 2025 was $2.9 million (4.9% of net sales), an increase from $2.7 million (4.2% of net sales) in third quarter of 2024. Adjusted EBITDA for first nine months of 2025 rose to $11.9 million (6.6% of net sales) from $11.3 million (6.4% of net sales) for the first nine months of 2024. These adjusted figures exclude the gain from the sale of TP and NMI, as well as impairment losses from the previously announced wind down of production activities at Crown Boiler.
  • Increased Shareholder Value: Adjusted diluted earnings per share for the third quarter of 2025 improved to $0.20, up from $0.12 in 2024. Year-to-date adjusted diluted earnings per share were $1.15, compared to $0.93 for the first nine months of 2024.

On October 7, 2025, the Company announced that it purchased a group annuity contract and will transfer a portion of its pension payment obligations under the Retirement Plan for Employees of the Burnham Group (pension) to a third-party insurance company.  Under the contract, the Company will transfer approximately $90.0 million of its defined benefit pension obligations and related plan assets for approximately 1,000 retirees and beneficiaries to the insurance company.  The contract was purchased using assets from the pension trust and no additional funding contribution was required as part of this transaction.

On January 1, 2026, the third-party insurer will begin paying and administering the retirement benefits of the retirees and beneficiaries included in this annuity transfer. This change will not affect the amount of individuals' monthly benefit payments.  This decision does not impact current employees.  Retirees and beneficiaries who are included in this annuity transfer will be notified in the coming weeks.

In connection with this transaction, the company expects to recognize an estimated non-cash pre-tax non-operating pension settlement charge of approximately $20.8 million in the fourth quarter.  The actual settlement charge will depend on finalization of actuarial assumptions, including discount rate, as well as the fair value of plan assets as of the measurement date.  This charge represents and acceleration of deferred charges currently on the consolidated balance sheet in accumulated other comprehensive loss.

"We achieved solid net sales and profitability growth in the third quarter highlighted by the continued strong execution of our operating subsidiaries and broader unified strategy," stated Chris Drew, President and CEO of Burnham Holdings. "In addition to our positive results, we significantly de-risked our pension obligations that will provide us with greater financial flexibility and support our future operations. With the promising early returns of our strategic portfolio adjustments combined with a more efficient operating structure, we believe we are well-positioned to drive long-term shareholder value."

As previously announced on April 7, 2025, BHI initiated a plan to strategically wind down operations at Crown Boiler. This forward-looking decision is integral to driving manufacturing efficiency, improving production flexibility, and directly supports the Company's long-term growth objectives. This further enables BHI and its subsidiaries to enhance product integration, streamline operations, and standardize offerings across its portfolio. While this strategic realignment involved recorded impairment charges totaling $3.3 million during 2025, it was a necessary step to optimize BHI's operational footprint and focus resources towards its most promising growth avenues. These charges included $1.5 million of goodwill relating to the acquisition of Crown in 2003, $0.4 million of accelerated depreciation and $1.4 million of inventory reserves.

Subsidiary Litigation Update
On October 21, 2025, the New York Court of Appeals denied Burnham LLC's, a wholly owned subsidiary of BHI, petition for leave to appeal the verdict that was entered against the company in Maffei v. A.O. Smith Water Prods. Co. (In re N.Y.C. Asbestos Litigation) matter. The gross verdict (without regard to setoff or apportionment reductions) equated to $31.5 million of compensatory damages and $6.5 million of punitive damages. Prior to this appeal, Burnham LLC filed an appeal to the Appellate Division, First Judicial Department who affirmed the trial's verdict. Because Burnham believes its arguments on appeal are meritorious, Burnham plans to investigate all further appeal options including the possibility of filing an emergency petition for certiori to the United States Supreme Court. Although the verdict was rendered at trial, Burnham LLC had a reasonable belief that there was a high probability of post-verdict relief on the damages in the appeals process based on advice of third-party experts and their analysis of prior case law. The compensatory portion of damages are insured by applicable policies, and Burnham LLC will be vigorously pursuing coverage from its applicable insurance policies to pay for cost of the awarded punitive damages. In the event the coverage is unavailable or denied, Burnham LLC will be required to pay only the punitive damages directly. As previously disclosed, in the normal course of business, certain subsidiaries of BHI have been named, and may in the future be named, as defendants in various legal actions, including claims for damages alleging exposure to asbestos from products of the company's subsidiaries or their predecessors.

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 Income

(In thousands, except per share amounts)

(Unaudited)



Three Months Ended


Nine Months Ended



September 28,


September 29,


September 28,


September 29,



2025


2024


2025


2024

Net sales 


$        58,327


$        55,411


$      167,035


$      153,157

Cost of goods sold


46,901


45,350


130,523


120,452

  Gross profit


11,426


10,061


36,512


32,705

Selling, general and administrative expenses


10,472


9,911


31,380


27,599

Impairment loss


181


-


3,318


-

  Operating income


773


150


1,814


5,106

Other (expense) / income:









  Non-service related pension credit


50


124


150


374

  Interest and investment gain


372


423


864


912

  Interest expense


(121)


(697)


(465)


(1,526)

    Other income (expense)


301


(150)


549


(240)

Income from continuing operations before income tax


1,074


-


2,363


4,866

Income tax expense


247


-


542


1,119

  Income from continuing operations


827


-


1,821


3,747










Income from discontinued operations, net of tax


-


552


1,066


637

Gain on sale of discontinued operations, net of tax


801


-


7,028


-

  Income from discontinued operations, net of tax


801


552


8,094


637










  Net income


$          1,628


$             552


$          9,915


$          4,384










Earnings per share (EPS):









  Basic









    Income from continuing operations


$            0.18


$                  -


$            0.39


$            0.80

    Income from discontinued operations


0.17


0.12


1.73


0.14

      Basic EPS


$            0.35


$            0.12


$            2.12


$            0.94










  Diluted









    Income from continuing operations


$            0.17


$                  -


$            0.38


$            0.79

    Income from discontinued operations


0.17


0.12


1.72


0.14

      Diluted EPS


$            0.34


$            0.12


$            2.10


$            0.93










Cash dividends per share


$            0.23


$            0.23


$            0.69


$            0.69

 

Burnham Holdings, Inc.

Consolidated Balance Sheets

(In thousands)





(Unaudited)




(Unaudited)





September 28,


December 31,


September 29,

ASSETS



2025


2024


2024

Current Assets








Cash and cash equivalents


$              7,154


$              6,329


$              6,256


Trade accounts receivable, net


22,839


23,858


25,570


Inventories, net


54,768


46,962


60,082


Costs in excess of billings


563


141


1,425


Prepaid expenses and other current assets


3,539


4,394


3,012


Current assets of discontinued operations


-


12,747


14,129



Total Current Assets


88,863


94,431


110,474










Property, plant and equipment, net


70,183


65,972


65,614

Lease assets


5,559


6,005


6,410

Other long-term assets


20,497


22,261


17,097

Long-term assets of discontinued operations


-


5,667


5,921



Total Assets


$          185,102


$          194,336


$          205,516










LIABILITIES AND SHAREHOLDERS' EQUITY







Current Liabilities








Accounts payable & accrued expenses


$            29,631


$            32,264


$            27,845


Billings in excess of costs


602


1,698


3,497


Current liabilities of discontinued operations


-


3,245


1,818


Current portion of:








    Long-term liabilities


72


772


71


    Lease liabilities


1,426


1,348


1,175


    Long-term debt 


184


184


184



Total Current Liabilities


31,915


39,511


34,590










Long-term debt


14,540


22,273


48,390

Lease liabilities


4,133


4,657


5,235

Other long-term liabilities


5,051


4,823


5,847

Deferred income taxes


9,659


9,352


8,371

Long-term liabilities of discontinued operations


-


441


668

Shareholders' Equity








Preferred Stock


530


530


530


Class A Common Stock 


3,654


3,633


3,633


Class B Convertible Common Stock


1,293


1,311


1,311


Additional paid-in capital


9,929


10,799


10,625


Retained earnings


135,491


128,884


122,397


Accumulated other comprehensive loss


(21,320)


(20,820)


(25,023)


Treasury stock, at cost 


(9,773)


(11,058)


(11,058)



Total Shareholders' Equity


119,804


113,279


102,415



Total Liabilities and Shareholders' Equity


$          185,102


$          194,336


$          205,516

 

Burnham Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Nine Months Ended



September 28,


September 29,



2025


2024

Cash flows from operating activities:





  Net income


$              9,915


$              4,384

  Income from discontinued operations, net of tax


8,094


637

  Income from continuing operations


$              1,821


$              3,747

  Adjustments to reconcile income from continuing operations





    to net cash provided by operating activities:





    Depreciation and amortization


3,790


3,658

    Investment impairment loss


3,318


-

    Deferred income taxes


44


50

    Provision for long-term employee benefits


(171)


(375)

    Share-based compensation expense


474


300

    Other reserves and allowances


(1,995)


(32)

    Changes in current assets and liabilities:





      Decrease in accounts receivable, net


979


481

      Increase in inventories, net


(9,255)


(10,767)

      (Increase) decrease in other current assets


(172)


1,956

      Decrease in accounts payable and accrued expenses


(2,217)


(7,042)

        Net cash used by operating activities of continuing operations


(3,384)


(8,024)

        Net cash (used) provided by operating activities of discontinued operations


(30)


251

        Net cash used by operating activities


(3,414)


(7,773)






Cash flows from investing activities:





    Capital expenditures


(8,358)


(9,388)

    Proceeds from sale of discontinued operations


23,687


-

        Net cash provided (used) by investing activities of continuing operations


15,329


(9,388)

        Net cash provided (used) by investing activities of discontinued operations


7


(250)

        Net cash provided (used) by investing activities


15,336


(9,638)






Cash flows from financing activities:





    Net activity from revolving credit facility


(7,641)


21,251

    Repayment of term loan


(92)


(92)

    Share-based compensation activity


(56)


(71)

    Dividends paid


(3,308)


(3,278)

        Net cash (used) provided by financing activities


(11,097)


17,810






Net increase in cash and cash equivalents


$                 825


$                 399






Cash and cash equivalents, beginning of period


$              6,329


$              5,857

Net increase in cash and cash equivalents


825


399

Cash and cash equivalents, end of period


$              7,154


$              6,256

 

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, 2023


$        530


$      3,633


$      1,311


$    11,769


$  121,291


$           (24,668)


$  (12,431)


$       101,435


















Net income


-


-


-


-


2,991


-


-


2,991

Other comprehensive income,

















     net of tax


-


-


-


-


-


253


-


253

Cash dividends declared:

















    Common stock - ($0.23 per share)


-


-


-


-


(1,065)


-


-


(1,065)

Share-based compensation:

















    Expense recognition


-


-


-


100


-


-


-


100


















Balance at March 31, 2024


$        530


$      3,633


$      1,311


$    11,869


$  123,217


$           (24,415)


$  (12,431)


$       103,714


















Net income


-


-


-


-


841


-


-


841

Other comprehensive loss,

















     net of tax


-


-


-


-


-


(27)


-


(27)

Cash dividends declared:

















    Preferred stock - 6%


-


-


-


-


(9)


-


-


(9)

    Common stock - ($0.23 per share)


-


-


-


-


(1,132)


-


-


(1,132)

Share-based compensation:

















    Expense recognition


-


-


-


100


-


-


-


100

    Issuance of vested shares


-


-


-


(1,444)


-


-


1,373


(71)


















Balance at June 30, 2024


$        530


$      3,633


$      1,311


$    10,525


$  122,917


$           (24,442)


$  (11,058)


$       103,416


















Net income


-


-


-


-


552


-


-


552

Other comprehensive loss,

















     net of tax


-


-


-


-


-


(581)


-


(581)

Cash dividends declared:

















    Common stock - ($0.23 per share)


-


-


-


-


(1,072)


-


-


(1,072)

Share-based compensation:

















    Expense recognition


-


-


-


100


-


-


-


100


















Balance at September 29, 2024


$        530


$      3,633


$      1,311


$    10,625


$  122,397


$           (25,023)


$  (11,058)


$       102,415









































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 - ($0.22 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


















Net income


-


-


-


-


4,916


-


-


4,916

Other comprehensive loss,

















     net of tax


-


-


-


-


-


(209)


-


(209)

Cash dividends declared:

















    Preferred stock - 6%


-


-


-


-


(9)


-


-


(9)

    Common stock - ($0.22 per share)


-


-


-


-


(1,147)


-


-


(1,147)

Share-based compensation:

















    Expense recognition


-


-


-


160


-


-


-


160

    Issuance of vested shares


-


-


-


(1,393)


-


-


1,285


(108)


















Balance at June 29, 2025


$        530


$      3,642


$      1,302


$      9,685


$  134,943


$           (21,237)


$    (9,773)


$       119,092


















Net income


-


-


-


-


1,628


-


-


1,628

Other comprehensive loss,

















     net of tax


-


-


-


-


-


(83)


-


(83)

Cash dividends declared:

















    Common stock - ($0.22 per share)


-


-


-


-


(1,080)


-


-


(1,080)

Share-based compensation:

















    Expense recognition


-


-


-


195


-


-


-


195

    Issuance of vested shares


-


3


-


49


-


-


-


52

Conversion of common stock


-


9


(9)


-


-


-


-


-


















Balance at September 28, 2025


$        530


$      3,654


$      1,293


$      9,929


$  135,491


$           (21,320)


$    (9,773)


$       119,804

 

Burnham Holdings, Inc.

Non-GAAP Reconciliation

(In thousands, except per share amounts)

(Unaudited)



Three Months Ended


Nine Months Ended



September 28,


September 29,


September 28,


September 29,



2025


2024


2025


2024

Net sales of continuing operations


$        58,327


$        55,411


$      167,035


$      153,157

Net sales of discontinued operations


-


9,278


11,518


22,926

  Total net sales


$        58,327


$        64,689


$      178,553


$      176,083










Net income


$          1,628


$             552


$          9,915


$          4,384

Exclude:









  Income tax expense


486


165


2,959


1,309

  Interest expense


121


697


465


1,526

  Depreciation and amortization


1,499


1,322


4,325


4,031

    EBITDA


$          3,734


$          2,736


$        17,664


$        11,250










    EBITDA as a percent of net sales


6.4 %


4.2 %


9.9 %


6.4 %










EBITDA


$          3,734


$          2,736


$        17,664


$        11,250

Adjustments:









  Gain on sale of discontinued operation


(1,040)


-


(9,127)


-

  Impairment loss


181


-


3,318


-

  Adjusted EBITDA


$          2,875


$          2,736


$        11,855


$        11,250










  Adjusted EBITDA as a percent of net sales


4.9 %


4.2 %


6.6 %


6.4 %












Three Months Ended


Nine Months Ended



September 28,


September 29,


September 28,


September 29,



2025


2024


2025


2024

Net income


$          1,628


$             552


$          9,915


$          4,384

Adjustments, net of tax


(661)


-


(4,473)


-

  Adjusted net income


$             967


$             552


$          5,442


$          4,384










Diluted weighted-average shares outstanding


4,731


4,718


4,722


4,713










Diluted earnings per share


$            0.34


$            0.12


$            2.10


$            0.93

Adjusted diluted earnings per share


$            0.20


$            0.12


$            1.15


$            0.93

 

Cision View original content:https://www.prnewswire.com/news-releases/burnham-holdings-inc-announces-third-quarter-2025-financial-results-302593344.html

SOURCE Burnham Holdings, Inc.


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