ECO reported net sales of $5.2M, an increase of 38%, largely due to 56% higher volumes from increased demand. Adjusted EBITDA of $0.4M flipped positive from the prior period, and it experienced increased demand in the wood composites end market from higher usage at commercial mills. Gross profits rose, driven by lower manufacturing costs, but this was offset by a lower average selling price. It is a small ($248M market cap) name, and the increased demand for its products is encouraging, but it is not quite yet profitable, sales growth is minimal, and we would consider its balance sheet to be just OK. It seems to have found some level of price support around the $4 range, and if results continue to improve we could see the name slowly grind higher.
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