LANCASTER, PA — Burnham Holdings, Inc. (OTC-Pink: BURCA) reported solid second-quarter financial results on Friday, as the company’s ongoing restructuring efforts—including key divestitures and operational streamlining—continued to deliver stronger margins, improved profitability, and greater financial flexibility.
Net sales for the second quarter reached $53.0 million, an 8.5% increase over the same period last year. Year-to-date revenue rose to $108.7 million, up more than $11 million from the first half of 2024. Gross margins held steady at a healthy 21.6%, with the company citing gains in operational efficiency across its commercial segment.
“Burnham’s second quarter results reflect not only strong operational performance across our continuing businesses, but also the positive impact of critical strategic decisions,” said President and CEO Chris Drew. “These decisive actions underscore our commitment to optimizing performance and seizing future growth opportunities.”
Divestitures and Restructuring Drive Results
The quarter was defined by two major transactions: the sale of subsidiaries Thermo Pride and Norwood Manufacturing, and the planned shutdown of Crown Boiler operations. Together, these moves are designed to sharpen Burnham’s focus on its core commercial and industrial boiler operations while reducing costs and streamlining its portfolio.
The sale of TP and NMI closed on May 5 for $27.3 million, resulting in $23.7 million in net proceeds after adjustments and expenses. The deal also generated a $6.2 million net gain in the quarter, which was used to pay down outstanding debt, reducing interest costs and improving Burnham’s balance sheet.
Meanwhile, the wind-down of Crown Boiler triggered $3.1 million in impairment charges, including write-downs of goodwill, accelerated depreciation, and inventory reserves. Still, management said the restructuring would ultimately improve manufacturing efficiency and standardization across the company’s brands.
Improved Profitability and Capital Allocation
Adjusted EBITDA for the first half of 2025 rose to $9.0 million, up from $8.5 million a year earlier. Adjusted net income for the second quarter increased to $1.1 million, while year-to-date adjusted net income climbed to $4.5 million—both excluding one-time gains and impairment charges.
Diluted earnings per share, on an adjusted basis, improved to $0.23 in Q2 and $0.95 for the first half, compared to $0.18 and $0.81, respectively, in 2024.
Selling, general, and administrative expenses rose 18.3% in the second quarter, in line with strategic investments to support future growth initiatives, particularly in service-oriented business lines.
Burnham also reported that order flow and backlogs remain consistent with historical seasonal patterns and reaffirmed its outlook for the remainder of the year.
Focus Shifts to Mobile Services and Industrial Expansion
Following the recent divestitures, Burnham is doubling down on its high-growth commercial and industrial boiler service businesses. The company noted its ongoing expansion of mobile boiler room offerings as a key area of opportunity, supported by its strengthened balance sheet and reduced leverage.
“Our strategic portfolio adjustments are pivotal steps in our unified strategy to build an even more agile, focused, and financially robust company,” said Drew.
Shareholder Returns
Burnham’s board declared a quarterly dividend of $0.23 per share, payable September 25 to shareholders of record as of September 18, reinforcing the company’s commitment to delivering long-term shareholder value.
As Burnham Holdings moves into the second half of the year, management remains focused on disciplined execution, cost control, and leveraging its simplified operating structure to fuel future growth.
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