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Burnham Holdings, Inc. Announces Second Quarter 2025 Financial Results

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

LANCASTER, Pa., July 24, 2025 /PRNewswire/ — Burnham Holdings, Inc. (OTC-Pink: BURCA) (“BHI”, the “Company”, “we” or “our”) today reported its consolidated financial results for the second 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 second quarter of 2025 reached $53.0 million, an 8.5% increase ($4.1 million) over the second quarter of 2024. Year-to-date net sales climbed to $108.7 million, up from $97.7 million in the first half of 2024.
  • Solid Gross Profit Margins: The Company maintained strong gross profit margins of 21.6% in the second quarter of 2025, reflecting operational efficiencies in the Commercial businesses.
  • Strategic SG&A Investment: Selling, general, and administrative expenses (SG&A) increased by 18.3% in the second quarter and 18.2% in the first half of 2025, aligning with planned initiative spending to support long-term growth.
  • Enhanced Profitability Metrics: Adjusted EBITDA for the first half of 2025 reached $9.0 million (7.5% of net sales), an increase from $8.5 million in the first half of 2024. Adjusted net income for Q2 2025 rose to $1.1 million (vs. $0.8 million prior year), with first-half adjusted net income at $4.5 million (vs. $3.8 million). 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 second quarter of 2025 improved to $0.23, up from $0.18 in 2024. Year-to-date adjusted diluted earnings per share were $0.95, compared to $0.81 for the first half of 2024.

“Burnham Holdings’ second quarter results reflect not only strong operational performance across our continuing businesses, but also the positive impact of critical strategic decisions made to sharpen our focus and enhance financial flexibility,” stated Chris Drew, President and CEO of Burnham Holdings. “Our strategic portfolio adjustments, including the divestiture of Thermo Pride and Norwood Manufacturing and the wind down of Crown Boiler operations, are pivotal steps in our unified strategy to build an even more agile, focused, and financially robust company, ultimately creating enhanced long-term value for our shareholders. These decisive actions underscore our commitment to optimizing performance and seizing future growth opportunities.”

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 $3.1 million in the second quarter, 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, $0.2 million of accelerated depreciation and $1.4 million of inventory reserves.

Building on this strategic momentum, BHI also substantially divested all of the assets of TP and NMI, as announced on May 5, 2025.  This significant transaction aligns with the holding company’s long-term vision to strengthen its core boiler business while expanding its commercial and industrial rental and service operations.  The transaction successfully closed for $27.3 million, yielding net cash proceeds of $23.7 million after accounting for customary adjustments and transaction expenses. A book gain of $8.1 million ($6.2 million net of tax) was realized in the second quarter. Importantly, the proceeds were applied to outstanding debt on our revolving credit facility, which significantly drove down total debt and resulted in a substantial year-over-year decrease in interest expense. Through rigorous discipline around working capital management, average debt levels continue to sharply decrease on a year-over-year basis. Overall, we continue to believe order flow and our current backlogs are in line with seasonal operating patterns and 2025 is expected to follow the same manner.

These key strategic actions – the divestiture of TP and NMI, along with planned wind down of manufacturing operations at Crown Boiler – underscores BHI’s commitment to its core boiler operations. The company’s strategic longer-term focus remains firmly on growing and developing its commercial and industrial boiler service and installation business, including expansion of its mobile boiler room offerings.  The enhanced debt capacity resulting from these initiatives provides valuable flexibility, allowing BHI to pursue alternative funding avenues in support of its strategic growth goals.  

Further demonstrating our commitment to shareholder returns, the Burnham Holdings, Inc. Board of Directors, at its meeting on July 24, 2025, declared a quarterly common stock dividend of $0.23 per share. This dividend is payable on September 25, 2025, to shareholders of record as of September 18, 2025.

About Burnham Holdings, Inc.: BHI is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers, furnaces and related HVAC products and accessories for residential, commercial, and industrial applications.  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


Six Months Ended



June 29,


June 30,


June 29,


June 30,



2025


2024


2025


2024

Net sales 


$        52,971


$        48,840


$      108,708


$        97,746

Cost of goods sold


41,519


38,541


83,622


75,102

  Gross profit


11,452


10,299


25,086


22,644

Selling, general and administrative expenses


10,755


9,090


20,908


17,688

Impairment loss


3,137



3,137


  Operating (loss) income


(2,440)


1,209


1,041


4,956

Other (expense) / income:









  Non-service related pension credit


50


113


100


250

  Interest and investment gain


498


379


492


489

  Interest expense


(105)


(533)


(344)


(829)

    Other income (expense)


443


(41)


248


(90)

(Loss) income from continuing operations before income tax


(1,997)


1,168


1,289


4,866

Income tax (benefit) expense


(459)


268


295


1,119

  (Loss) income from continuing operations


(1,538)


900


994


3,747









Income (loss) from discontinued operations, net of tax


227


(59)


1,066


85

Gain on sale of discontinued operations, net of tax


6,227



6,227


  Income (loss) from discontinued operations, net of tax


6,454


(59)


7,293


85









  Net income


$          4,916


$             841


$          8,287


$          3,832









Earnings per share (EPS):









  Basic









    (Loss) income from continuing operations


$           (0.33)


$            0.19


$            0.21


$            0.81

    Income (loss) from discontinued operations


1.38


(0.01)


1.56


0.01

      Basic EPS


$            1.05


$            0.18


$            1.77


$            0.82









  Diluted









    (Loss) income from continuing operations


$           (0.33)


$            0.19


$            0.21


$            0.80

    Income (loss) from discontinued operations


1.37


(0.01)


1.55


0.01

      Diluted EPS


$            1.04


$            0.18


$            1.76


$            0.81









Cash dividends per share


$            0.23


$            0.23


$            0.46


$            0.46

 

Burnham Holdings, Inc.

Consolidated Balance Sheets

(In thousands)





(Unaudited)




(Unaudited)





June 29,


December 31,


June 30,

ASSETS



2025


2024


2024

Current Assets








Cash and cash equivalents


$              7,032


$              6,329


$              6,497


Trade accounts receivable, net


21,371


23,858


20,764


Inventories, net


54,126


46,962


60,777


Costs in Excess of Billings


202


141


1,227


Prepaid expenses and other current assets


3,210


4,394


5,120


Current assets of discontinued operations



12,747


14,119



Total Current Assets


85,941


94,431


108,504









Property, plant and equipment, net


69,049


65,972


65,122

Lease assets


5,851


6,005


3,980

Other long-term assets


20,455


22,261


17,396

Long-term assets of discontinued operations



5,667


5,901



Total Assets


$          181,296


$          194,336


$          200,903









LIABILITIES AND SHAREHOLDERS’ EQUITY







Current Liabilities








Accounts payable & accrued expenses


$            31,761


$            32,264


$            29,106


Billings in excess of costs


803


1,698


659


Current liabilities of discontinued operations



3,245


2,160


Current portion of:








    Long-term liabilities


772


772


1,171


    Lease liabilities


1,398


1,348


989


    Long-term debt 


184


184


184



Total Current Liabilities


34,918


39,511


34,269









Long-term debt


8,955


22,273


45,454

Lease liabilities


4,453


4,657


2,991

Other long-term liabilities


4,210


4,823


5,599

Deferred income taxes


9,668


9,352


8,506

Long-term liabilities of discontinued operations



441


668

Shareholders’ Equity








Preferred Stock


530


530


530


Class A Common Stock 


3,642


3,633


3,633


Class B Convertible Common Stock


1,302


1,311


1,311


Additional paid-in capital


9,685


10,799


10,525


Retained earnings


134,943


128,884


122,917


Accumulated other comprehensive loss


(21,237)


(20,820)


(24,442)


Treasury stock, at cost 


(9,773)


(11,058)


(11,058)



Total Shareholders’ Equity


119,092


113,279


103,416



Total Liabilities and Shareholders’ Equity


$          181,296


$          194,336


$          200,903

 

Burnham Holdings, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)



Six Months Ended



June 29,


June 30,



2025


2024

Cash flows from operating activities:





  Net income


$              8,287


$              3,832

  Income from discontinued operations, net of tax


7,293


85

  Income from continuing operations


$                 994


$              3,747

  Adjustments to reconcile income from continuing operations





    to net cash provided by operating activities:





    Depreciation and amortization


2,472


2,462

    Impairment loss


3,137


    Deferred income taxes


28


12

    Provision for long-term employee benefits


(156)


(250)

    Share-based compensation expense


279


200

    Other reserves and allowances


(1,445)


232

    Changes in current assets and liabilities:





      Decrease in accounts receivable, net


2,460


6,231

      Increase in inventories, net


(8,613)


(12,838)

      Decrease (increase) in other current assets


1,006


(2,899)

      Decrease in accounts payable and accrued expenses


(1,761)


(4,626)

        Net cash used by operating activities of continuing operations


(1,599)


(7,729)

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


(9)


228

        Net cash used by operating activities


(1,608)


(7,501)





Cash flows from investing activities:





    Capital expenditures


(5,729)


(7,567)

    Proceeds from sale of discontinued operations


23,687


    Other investing activities



(8)

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


17,958


(7,575)

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


7


(229)

        Net cash provided (used) by investing activities


17,965


(7,804)





Cash flows from financing activities:





    Net activity from revolving credit facility


(13,226)


18,314

    Repayment of term loan


(92)


(92)

    Proceeds from share-based compensation activity



    Share-based compensation activity


(108)


(71)

    Dividends paid


(2,228)


(2,206)

        Net cash (used) provided by financing activities


(15,654)


15,945





Net increase in cash and cash equivalents


$                 703


$                 640





Cash and cash equivalents, beginning of period


$              6,329


$              5,857

Net increase in cash and cash equivalents


703


640

Cash and cash equivalents, end of period


$              7,032


$              6,497

 

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







































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

 

Burnham Holdings, Inc.

Non-GAAP Reconciliation

(In thousands, except per share amounts)

(Unaudited)



Three Months Ended


Six Months Ended



June 29,


June 30,


June 29,


June 30,



2025


2024


2025


2024

Net sales of continuing operations


$        52,971


$        48,840


$      108,708


$        97,746

Net sales of discontinued operations


2,420


6,551


11,518


13,648

  Total net sales


$        55,391


$        55,391


$      120,226


$      111,394









Net income


$          4,916


$             841


$          8,287


$          3,832

Exclude:









  Income tax expense


1,469


250


2,474


1,144

  Interest expense


105


533


344


829

  Depreciation and amortization


1,433


1,339


2,826


2,709

    EBITDA


$          7,923


$          2,963


$        13,931


$          8,514









    EBITDA as a percent of net sales


14.3 %


5.3 %


11.6 %


7.6 %









EBITDA


$          7,923


$          2,963


$        13,931


$          8,514

Adjustments:









  Gain on sale of discontinued operation


(8,087)



(8,087)


  Impairment loss


3,137



3,137


  Adjusted EBITDA


$          2,973


$          2,963


$          8,981


$          8,514










  Adjusted EBITDA as a percent of net sales


5.4 %


5.3 %


7.5 %


7.6 %











Three Months Ended


Six Months Ended



June 29,


June 30,


June 29,


June 30,



2025


2024


2025


2024

Net income


$          4,916


$             841


$          8,287


$          3,832

Adjustments, net of tax


(3,811)



(3,811)


  Adjusted net income


$          1,105


$             841


$          4,476


$          3,832









Diluted weighted-average shares outstanding


4,720


4,714


4,705


4,701









Diluted earnings per share


$            1.04


$            0.18


$            1.76


$            0.81

Adjusted diluted earnings per share


$            0.23


$            0.18


$            0.95


$            0.81

 

Cision View original content:https://www.prnewswire.com/news-releases/burnham-holdings-inc-announces-second-quarter-2025-financial-results-302513529.html

SOURCE Burnham Holdings, Inc.

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