Optex Systems (OPXS) Q2 2025 earnings summary

Executive summary

• Revenue for the quarter ended March 30, 2025 increased 25.9% year-over-year to $10.7 million, driven by higher periscope production and demand for laser filters.

• Net income rose to $1.8 million for the quarter, up 66.5% year-over-year, with adjusted EBITDA up 49.4% to $2.4 million.

• Operating income for the quarter increased 65% year-over-year to $2.2 million, reflecting higher revenue and gross profit with lower G&A costs.

• Backlog as of March 30, 2025 was $41.1 million, down 7% from the prior year, with a $5.7 million laser filter contract awarded post-quarter.

Financial highlights

• Six-month revenue increased 22.2% year-over-year to $18.9 million; gross profit rose 29.4% to $5.5 million.

• Gross margin for the quarter was 31.3%, up from 30.0% in the prior year; six-month gross margin was 29.0%.

• Operating cash flow for the six months was $4.0 million, with $3.5 million in cash and no outstanding credit facility draws at quarter-end.

• No dividends were declared or paid during the period.

• Basic and diluted EPS for the quarter were $0.26, up from $0.16 year-over-year.

Outlook and guidance

• Management expects continued revenue growth supported by backlog and improved production capacity, with positive net income and cash flow anticipated over the next twelve months.

• No significant material risks anticipated from recent tariff uncertainties; future commercial product orders may include revised pricing for tariffs.

• Additional capital projects and potential product line acquisitions are planned in the next three to six months.