# COMPX INTERNATIONAL INC (CIX)

Informational only - not investment advice.

CIK: 0001049606
SIC: 3420 Cutlery, Handtools & General Hardware
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 34](/major-group/34/) > [SIC 3420 Cutlery, Handtools & General Hardware](/industry/3420/)
Latest 10-K filed: 2026-03-04
SEC page: https://www.sec.gov/edgar/browse/?CIK=1049606
Filing source: https://www.sec.gov/Archives/edgar/data/1049606/000110465926023463/cix-20251231x10k.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-03-04 · accession 0001104659-26-023463 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001049606.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 158,285,000 USD | 2025 | verified |
| Net income | 19,478,000 USD | 2025 | verified |
| Assets | 156,194,000 USD | 2025 | verified |
| Free cash flow | 19,124,000 USD | 2025 | computed |
| Net margin | 12.31% | 2025 | computed |
| Operating margin | 14.28% | 2025 | computed |
| Revenue YoY | +8.46% | 2025 | computed |
| ROE | 14.05% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CIX | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 12.3% | 6.1% | 74 | 35 |
| Operating margin | 14.3% | 9.3% | 68 | 32 |
| Revenue growth | 8.5% | 4.5% | 74 | 36 |
| FCF margin | 12.1% | 10.7% | 65 | 35 |
| ROE | 14.1% | 11.6% | 59 | 35 |
| ROA | 12.5% | 4.4% | 89 | 36 |
| Liabilities / equity | 0.13 | 0.89 | 0 | 35 |
| Current ratio | 5.87 | 2.59 | 100 | 36 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 34 SIC Major Group 34, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 158285000 | USD | 2025 | 2026-03-04 |
| Net income | 19478000 | USD | 2025 | 2026-03-04 |
| Assets | 156194000 | USD | 2025 | 2026-03-04 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001049606.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 108,920,000 | 112,035,000 | 118,217,000 | 124,243,000 | 114,537,000 | 140,815,000 | 166,562,000 | 161,287,000 | 145,941,000 | 158,285,000 |
| Net income | 10,457,000 | 13,203,000 | 15,325,000 | 15,998,000 | 10,323,000 | 16,568,000 | 20,871,000 | 22,593,000 | 16,587,000 | 19,478,000 |
| Operating income | 15,574,000 | 15,235,000 | 17,811,000 | 17,666,000 | 11,817,000 | 20,526,000 | 25,436,000 | 25,435,000 | 17,023,000 | 22,604,000 |
| Gross profit | 35,167,000 | 34,825,000 | 38,271,000 | 38,963,000 | 32,848,000 | 42,749,000 | 48,799,000 | 49,219,000 | 41,363,000 | 48,179,000 |
| Diluted EPS |  |  |  | 1.29 | 0.83 | 1.34 | 1.69 | 1.84 | 1.35 | 1.58 |
| Operating cash flow | 13,864,000 | 12,583,000 | 17,163,000 | 18,465,000 | 15,502,000 | 10,474,000 | 16,891,000 | 25,811,000 | 22,939,000 | 22,871,000 |
| Capital expenditures | 3,175,000 | 2,796,000 | 3,117,000 | 3,166,000 | 1,740,000 | 4,094,000 | 3,695,000 | 1,130,000 | 1,432,000 | 3,747,000 |
| Dividends paid | 2,483,000 | 2,485,000 | 2,487,000 | 3,483,000 | 4,980,000 | 9,929,000 | 33,880,000 | 12,311,000 | 39,418,000 | 27,110,000 |
| Assets | 143,980,000 | 150,959,000 | 166,429,000 | 178,544,000 | 184,045,000 | 192,452,000 | 177,387,000 | 187,604,000 | 163,044,000 | 156,194,000 |
| Stockholders' equity | 125,770,000 | 136,585,000 | 149,562,000 | 162,195,000 | 167,656,000 | 173,088,000 | 158,436,000 | 168,849,000 | 146,145,000 | 138,630,000 |
| Cash and cash equivalents | 33,153,000 | 29,655,000 | 45,414,000 | 63,255,000 | 70,637,000 | 76,579,000 | 26,748,000 | 41,393,000 | 60,782,000 | 54,096,000 |
| Free cash flow | 10,689,000 | 9,787,000 | 14,046,000 | 15,299,000 | 13,762,000 | 6,380,000 | 13,196,000 | 24,681,000 | 21,507,000 | 19,124,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 9.60% | 11.78% | 12.96% | 12.88% | 9.01% | 11.77% | 12.53% | 14.01% | 11.37% | 12.31% |
| Operating margin | 14.30% | 13.60% | 15.07% | 14.22% | 10.32% | 14.58% | 15.27% | 15.77% | 11.66% | 14.28% |
| Return on equity | 8.31% | 9.67% | 10.25% | 9.86% | 6.16% | 9.57% | 13.17% | 13.38% | 11.35% | 14.05% |
| Return on assets | 7.26% | 8.75% | 9.21% | 8.96% | 5.61% | 8.61% | 11.77% | 12.04% | 10.17% | 12.47% |
| Liabilities / equity | 0.14 | 0.11 | 0.11 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.12 | 0.13 |
| Current ratio | 4.44 | 5.00 | 5.58 | 7.28 | 7.70 | 7.31 | 6.68 | 7.36 | 6.67 | 5.87 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001049606.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 0.40 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.49 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.33 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 40,355,000 | 5,757,000 | 0.47 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 43,165,000 | 6,696,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 37,971,000 | 3,754,000 | 0.31 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 35,887,000 | 4,844,000 | 0.39 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 33,667,000 | 3,478,000 | 0.28 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 38,416,000 | 4,511,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 40,272,000 | 5,131,000 | 0.42 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 40,366,000 | 5,453,000 | 0.44 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 39,950,000 | 4,222,000 | 0.34 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 37,697,000 | 4,672,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 40,569,000 | 5,852,000 | 0.48 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 43,614,000 | 7,262,000 | 0.59 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CIX's latest 10-K: [/company/CIX/business/](/company/CIX/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CIX's latest 10-K: [/company/CIX/risk-factors/](/company/CIX/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1049606/000110465926090386/cix-20260630x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Business Overview

We are a leading manufacturer of engineered components utilized in a variety of applications and industries. Through our Security Products segment we manufacture mechanical and electrical cabinet locks and other locking mechanisms used in postal, recreational transportation, office and institutional furniture, cabinetry, tool storage and healthcare applications. We also manufacture wake enhancement systems, stainless steel exhaust systems, custom metal fabricated parts, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine and other industries through our Marine Components segment.

General

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Statements in this Quarterly Report that are not historical facts are forward-looking in nature and represent management’s beliefs and assumptions based on currently available information. In some cases, you can identify forward-looking statements by the use of words such as “believes,” “intends,” “may,” “should,” “could,” “anticipates,” “expects” or comparable terminology, or by discussions of strategies or trends. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we do not know if these expectations will be correct. Such statements by their nature involve substantial risks and uncertainties that could significantly impact expected results. Actual future results could differ materially from those predicted. The factors that could cause actual future results to differ materially from those described herein are the risks and uncertainties discussed in this Quarterly Report and those described from time to time in our other filings with the SEC and include, but are not limited to, the following:

[[GREPCENT_TABLE]]
[["","\u25cf","Future supply and demand for our products;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Changes in our raw material and other operating costs (such as zinc, brass, aluminum, steel and energy costs), including as a result of additional or changed tariffs on imported raw materials, and our ability to pass those costs on to our customers or offset them with reductions in other operating costs;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Price and product competition from low-cost manufacturing sources (such as China);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The impact of pricing and production decisions;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Customer and competitor strategies including substitute products;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to retain key customers;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Uncertainties associated with new product development and the development of new product features;"]]
[[/GREPCENT_TABLE]]

- 11 -

Table of Contents

[[GREPCENT_TABLE]]
[["","\u25cf","Pending or possible future litigation (such as litigation related to our use of certain permitted chemicals in our production process) or other actions;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Our ability to protect or defend our intellectual property rights;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Decisions to sell operating assets other than in the ordinary course of business;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Environmental matters (such as those requiring emission and discharge standards for existing and new facilities);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The ultimate outcome of income tax audits, tax settlement initiatives or other tax matters, including future tax reform;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Government laws and regulations and possible changes therein including new environmental, health and safety, sustainability or other regulations;"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","General global economic and political conditions that disrupt our supply chain, reduce demand or perceived demand for component products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Operating interruptions (including, but not limited to, labor disputes, leaks, natural disasters, fires, explosions, unscheduled or unplanned downtime, transportation interruptions, certain regional and world events or economic conditions and public health crises);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","The introduction of new, or changes in existing, tariffs, trade barriers or trade disputes (including tariffs imposed by the U.S. government on imports from China and Mexico);"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Technology related disruptions (including, but not limited to, cyber-attacks; software implementation, upgrades or improvements; technology processing failures; or other events) related to our technology infrastructure that could impact our ability to continue operations, or at key vendors which could impact our supply chain, or at key customers which could impact their operations and cause them to curtail or pause orders; and"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Possible disruption of our business or increases in the cost of doing business resulting from terrorist activities or global conflicts."]]
[[/GREPCENT_TABLE]]

Should one or more of these risks materialize (or the consequences of such development worsen), or should the underlying assumptions prove incorrect, actual results could differ materially from those currently forecasted or expected. We disclaim any intention or obligation to update or revise any forward-looking statement whether as a result of changes in information, future events or otherwise.

Operating Income Overview

Operating income in the second quarter of 2026 was $8.9 million compared to $6.3 million in the same period of 2025. Operating income for the first six months of 2026 was $16.0 million compared to $12.2 million for the comparable prior year period. Our operating income increased in the second quarter and for the first six months of 2026 due to higher sales and gross margins, predominantly at the Security Products segment and, to a lesser extent, at the Marine Components segment.

We sell a large number of products that have a wide variation in selling price and manufacturing cost, which results in certain practical limitations on our ability to quantify the impact of changes in individual product sales quantities and selling prices on our net sales, cost of sales and gross margin. In addition, small variations in period-to-period net sales, cost of sales and gross margin can result from changes in the relative mix of our products sold.

- 12 -

Table of Contents

Results of Operations

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

Net sales. Net sales increased $3.2 million and $3.5 million in the second quarter and for the first six months of 2026, respectively, compared to the same periods in 2025 due to higher Security Products sales across a variety of markets and higher Marine Components sales to the industrial market. See segment discussion below.

Cost of sales and gross margin. Cost of sales as a percentage of net sales improved by 3.7% and 3.1% in the second quarter and first six months of 2026, respectively, compared to the same periods in 2025. As a result, gross margin as a percentage of sales increased over the same periods. The improvement in gross margin percentage for the second quarter and first six months of 2026 was primarily due to a higher gross margin percentage at Security Products. In addition, improved gross margin performance at Marine Components contributed favorably to the increase in the second-quarter comparative period. See segment discussion below.

Operating costs and expenses. Operating costs and expenses consist primarily of sales and administrative-related personnel costs, sales commissions and advertising expenses directly related to product sales, administrative costs relating to business unit and corporate management activities, and gains and losses on property and equipment. Operating costs and expenses for the second quarter and first six months of 2026 were comparable to the same periods in 2025. Operating costs and expenses as a percentage of net sales decreased in the second quarter and first six months of 2026 due to higher coverage of operating costs and expenses as a result of higher sales.

Operating income. As a percentage of net sales, operating income for the second quarter and the first six months of 2026 increased compared to the same period of 2025 and was primarily impacted by the factors impacting sales, cost of sales, gross margin and operating costs and expenses. See segment discussion below.

Interest income. Interest income decreased $.2 million and $.4 million in the second quarter and first six months of 2026, respectively, compared to the same periods in 2025 primarily due to lower average interest rates and decreased cash balances.

Provision for income taxes. A tabular reconciliation of our actual tax provision to the U.S. federal statutory income tax rate is included in Note 6 to the Condensed Consolidated Financial Statements. Our operations are wholly within the U.S. and therefore our effective income tax rate is primarily reflective of the U.S. federal statutory rate and applicable state taxes.

- 13 -

Table of Contents

Segment Results

Key performance indicators for our segments are gross margin and operating income.

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1049606/000110465926023463/cix-20251231x10k.htm
Complete FY 2025 MD&A: /company/CIX/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-04
Report date: 2025-12-31

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Business Overview

We are a leading manufacturer of engineered components utilized in a variety of applications and industries. Through our Security Products segment we manufacture mechanical and electrical cabinet locks and other locking mechanisms used in postal, recreational transportation, office and institutional furniture, cabinetry, tool storage, healthcare applications and a variety of other industries. We also manufacture wake enhancement systems, stainless steel exhaust systems, gauges, throttle controls, trim tabs and related hardware and accessories for the recreational marine and other industries through our Marine Components segment.

Operating Income Overview

We reported operating income of $22.6 million in 2025 compared to $17.0 million in 2024 and $25.4 million in 2023. The increase in operating income in 2025 compared to 2024 was driven by higher sales and improved gross margin at each of the Security Products and Marine Components segments. In contrast, the decline in operating income in 2024 compared to 2023 resulted from lower sales and reduced gross margin across both segments. See results of operations discussion below.

Our product offerings consist of a large number of products that have a wide variation in selling price and manufacturing cost, which results in certain practical limitations on our ability to quantify the impact of changes in individual product sales quantities and selling prices on our net sales, cost of sales and gross margin. In addition, small variations in period-to-period net sales, cost of sales and gross margin can result from changes in the relative mix of our products sold.

Results of Operations - 2025 Compared to 2024 and 2024 Compared to 2023

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

​

Net Sales. Net sales increased $12.4 million in 2025 compared to 2024 primarily due to higher Security Products sales to the government security market and higher Marine Components sales to various markets including the towboat, government and industrial markets. See segment results discussion below.

- 15 -

​

Net sales decreased $15.4 million in 2024 compared to 2023 primarily due to lower Marine Components sales to the towboat market and lower Security Products sales to the government security market as a result of sales related to a pilot project that shipped in the third and fourth quarters of 2023 and for which there were no related sales in 2024. See segment results discussion below.

Cost of Sales and Gross Margin. Cost of sales increased in 2025 compared to 2024 primarily due to the effects of higher sales at both Security Products and Marine Components as well as increased production costs across both business segments. However, cost of sales as a percentage of net sales declined over the same period driven by a more favorable customer and product mix, particularly within Security Products, and increased coverage of fixed costs due to higher sales across both segments. As a result, gross margin as a percentage of net sales increased in 2025 compared to 2024. See segment results discussion below.

Cost of sales decreased in 2024 compared to 2023 primarily due to the effects of lower sales at both Security Products and Marine Components partially offset by higher production costs across both business segments. As a result, cost of sales as a percentage of net sales increased over the same period. Gross margin as a percentage of net sales decreased in 2024 compared to 2023 primarily due to the factors affecting cost of sales and decreased coverage of fixed costs due to lower sales. See segment results discussion below.

Operating Costs and Expenses. Operating costs and expenses consist primarily of sales and administrative-related personnel costs, sales commissions and advertising expenses directly related to product sales and administrative costs relating to business unit and corporate management activities, as well as gains and losses on sales of property and equipment. Operating costs and expenses increased $1.3 million in 2025 compared to 2024 predominantly due to higher employee-related costs including salaries, benefits, and medical expenses at both segments. As a percentage of net sales, operating costs and expenses decreased in 2025 compared to 2024 primarily due to higher coverage of operating cost and expenses as a result of higher sales, partially offset by the increased employee-related costs discussed above. See segment results discussion below.

Operating costs and expenses increased $.5 million in 2024 compared to 2023 predominantly due to higher employee salary and benefit costs at Security Products. As a percentage of net sales, operating costs and expenses increased in 2024 compared to 2023 primarily due to increased operating costs and expenses and decreased coverage of operating cost and expenses due to lower sales. See segment results discussion below.

Operating Income. As a percentage of net sales, operating income increased in 2025 compared to 2024 and decreased in 2024 compared to 2023. Operating income margins were primarily impacted by the factors affecting net sales, cost of sales, gross margin and operating costs discussed above. See segment results discussion below.

General. Our profitability primarily depends on our ability to utilize our production capacity effectively, which is affected by, among other things, the demand for our products and our ability to control our manufacturing costs, primarily comprised of labor costs and materials. The materials used in our products consist of purchased components and raw materials some of which are subject to fluctuations in the commodity markets such as zinc, brass, aluminum and stainless steel. Total material costs represented approximately 43% of our cost of sales in 2025, with commodity-related raw materials representing approximately 14% of our cost of sales. During 2025, we experienced increases in the cost of certain raw materials. Throughout the year, market prices for brass and aluminum experienced a general upward trend. Stainless steel prices were relatively stable in the first part of 2025 but began increasing during the latter half of the year. Zinc pricing was relatively stable in 2025, and we were able to mitigate increases through strategic spot buy purchases. In most cases, commodity raw materials we purchase include processing and conversion costs, such as alloying, extrusion and rolling, which remain elevated due to costs of labor, transportation and energy. Processing and conversion costs are not expected to decrease. Based on current economic conditions, we expect the prices for zinc, brass, aluminum, stainless steel and other manufacturing materials in 2026 to be more volatile compared to 2025. In addition to supply and demand, governmental actions such as tariffs may impact raw material markets.

We occasionally enter into short-term commodity-related raw material supply arrangements to mitigate the impact of future increases in commodity related raw material costs. See Item 1 - “Business- Raw Materials.”

- 16 -

​

Interest Income. Interest income decreased in 2025 compared to 2024 primarily due to lower average interest rates and decreased average investment balances. Interest income increased in 2024 compared to 2023 primarily due to higher interest rates and higher average investment balances, somewhat offset by lower average loan balances on our loan to an affiliate. See Note 9 to our Consolidated Financial Statements.

Income tax expense. A tabular reconciliation of our actual tax provision to the U.S. federal statutory income tax rate of 21% is included in Note 7 to the Consolidated Financial Statements. As a member of the group of companies consolidated for U.S. federal income tax purposes with Contran, the parent of our consolidated U.S. federal income tax group, we compute our provision for income taxes on a separate company basis, using the tax elections made by Contran.

Our effective income tax rate was 24% in each of 2023 and 2024 and 25% in 2025. See Notes 7 and 10 to our Consolidated Financial Statements. We currently expect our effective income tax rate for 2026 to be comparable to our effective income tax rate for 2025.

Segment Results

The key performance indicator for our segments is operating income (see discussion below). For additional information regarding our segments refer to Note 2 to our Consolidated Financial Statements.

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CIX/mda/fy2025/
All MD&A years: /company/CIX/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CIX/mda/fy2024/): filed 2025-03-05; accession 0001558370-25-002264 (https://www.sec.gov/Archives/edgar/data/1049606/000155837025002264/cix-20241231x10k.htm)
- [FY 2023 MD&A](/company/CIX/mda/fy2023/): filed 2024-02-28; accession 0001558370-24-002007 (https://www.sec.gov/Archives/edgar/data/1049606/000155837024002007/cix-20231231x10k.htm)
- [FY 2022 MD&A](/company/CIX/mda/fy2022/): filed 2023-03-01; accession 0001558370-23-002573 (https://www.sec.gov/Archives/edgar/data/1049606/000155837023002573/cik-20221231x10k.htm)
- [FY 2021 MD&A](/company/CIX/mda/fy2021/): filed 2022-03-02; accession 0001558370-22-002671 (https://www.sec.gov/Archives/edgar/data/1049606/000155837022002671/tmb-20211231x10k.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3420 Cutlery, Handtools & General Hardware) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CIX.md · JSON record: /company/CIX.json · verified financials: /company/CIX/financials.json / /company/CIX/financials.csv · machine TOC for the whole site: /llms.txt