OPXS

Interested in Optex Systems Holdings Inc.? Here are five stocks we like better. Strong financial growth: Third-quarter revenue rose 22.6% and nine-month revenue increased 22.3%, driven mainly by higher periscope production and stronger military laser-filter demand. Nine-month operating income climbed 43.8% to $5.1 million, while net income rose to $4.1 million. Improved cash position and backlog: Optex generated $5.4 million in operating cash flow, increased cash to $4.9 million at quarter-end, and paid off its credit-line balance. Recent contract awards lifted backlog from $38.3 million at June 29 to approximately $45 million as of Aug. 5. Expansion and new opportunities: The company is transferring Speedtracker production to Texas, launching the product commercially, and evaluating opportunities tied to Golden Dome missile defense and sensor-protection applications. Chad George became president on Aug. 11, while CEO Danny Schoening retained his role. Optex Systems (NASDAQ:OPXS) reported higher third-quarter and nine-month revenue, operating income and net income, supported by increased periscope production and stronger demand for military laser filters, while management said recently announced awards lifted backlog to $45 million as of Aug. 5. For the quarter ended June 29, 2025, total revenue increased $2.1 million, or 22.6%, from the prior-year period. Revenue for the first nine months rose $5.5 million, or 22.3%, year over year. Chief Financial Officer Karen Hawkins said the growth was driven primarily by higher periscope production at the company’s Optex Richardson segment and increased customer demand across both Optex Richardson and the Applied Optics Center. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Optex Richardson revenue increased 46.3% in the third quarter and 34.3% over the first nine months compared with the respective prior-year periods. Applied Optics Center revenue declined 2.6% in the quarter but increased 10.3% over nine months. During the nine-month period, periscope revenue at Optex Richardson climbed 76%, or $6 million, while military laser-filter demand at Applied Optics Center increased 32%, or $2.3 million. Hawkins said those gains were partly offset by lower demand for other military products at Optex Richardson and commercial optical assemblies at Applied Optics Center. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Consolidated gross profit increased 10% to $3.2 million in the third quarter, compared with $2.9 million a year earlier. Nine-month gross profit rose 21.6% to $8.7 million. The company attributed the improvement to higher revenue and changes in product mix. Gross margin for the first nine months was 28%, compared with 29% in the prior-year period, reflecting shifts between segments and product lines. General and administrative spending remained unchanged at $1.3 million for the quarter and $3.6 million for the nine-month period. → Is Wingstop's Growth Story Losing Steam? Operating income rose 18.3% to $1.9 million in the third quarter and increased 43.8% to $5.1 million over nine months. Net income was $1.5 million for the quarter, up from $1.3 million a year earlier, while adjusted EBITDA increased to $2.1 million from $1.8 million. For the nine-month period, net income increased to $4.1 million from $2.8 million, and adjusted EBITDA rose to $5.7 million from $4.2 million. The company ended June 29 with $4.9 million in cash, compared with $1 million at the end of its fiscal year in September 2024. It generated $5.4 million in operating cash flow during the first nine months, compared with $1 million in the prior-year period. Optex also paid down $1 million on its line of credit, reducing the balance to zero. Its $3 million credit facility was renewed in May for an additional 24 months through May 2026. During the call, Hawkins said cash on hand had increased to $6 million as of the prior day. Chairman and CEO Danny Schoening said the board has considered potential uses for the cash, including investments in personnel, equipment and capabilities, dividends, share repurchases and acquisitions. He said the company has not made a specific capital-allocation decision. Backlog stood at $38.3 million as of June 29, down from $45.6 million a year earlier. Hawkins said management believes the decrease reflected the timing of contract awards rather than a new demand trend. Subsequent awards included a $2.8 million order supporting the XM30 program, a $10.2 million five-year requirement-type contract for optical sighting systems, and a $1.6 million laser-filter order. Those developments brought backlog to $45 million as of Aug. 5, according to the company. Schoening clarified that the $10.2 million optical sighting systems award was an unfunded requirement-type contract when announced. He said the company reports the maximum potential value and expected delivery period for such awards, but backlog does not rise by the full amount until individual orders are funded. The U.S. government later funded a first-year order for $4.2 million of muzzle reference sensor units under that contract. Schoening said the company generally does not issue separate announcements for each subsequent order under a previously disclosed contract, citing the potential for confusion. Schoening described the Applied Optics Center’s core capability as thin-film coatings that absorb or reflect specified wavelengths of light. He said the coatings can be used to protect soldiers’ eyes, night-vision image intensifier tubes and sensitive sensors from laser sources. The division supplies products externally to customers including Elbit and L3Harris and internally to Optex Richardson. Optex Richardson incorporates filters into laser-protected periscopes and other sighting systems, Schoening said. He characterized the XM30 win as supporting the company’s growth strategy of being designed into new vehicles while maintaining and upgrading previously fielded platforms. On the Speedtracker product line acquired during the prior-year period, Schoening said Optex has been transferring production from the Czech Republic to Texas. He said the company is nearing the launch of the product and expects it to be advertised on Amazon within about 30 days. Management views the line as having commercial applications as well as potential military relevance, he said. Hawkins said the company does not currently expect material adverse effects from tariff uncertainty or China’s export restrictions on rare earth metals. Most defense products are sourced domestically, and imported products generally are not subject to tariffs or duties, she said. For commercial optical assemblies using select Taiwan-sourced components, Hawkins said current backlog is covered by existing materials and inventory, while future orders would be repriced to include potential tariff effects. Optex amended its bylaws after the quarter to allow its chief executive officer and president positions to be held by different individuals. Effective Aug. 11, Chad George became president and will report to Schoening, who remains CEO. George received an employment agreement through July 1, 2028, along with 10,000 restricted shares scheduled to vest Jan. 1, 2026. Asked about potential opportunities related to the Golden Dome missile-defense initiative, George said he was familiar with the program but was not yet certain that Optex’s capabilities align closely with it. He said the company recognizes the initiative as a potential growth vector and will continue evaluating how it could support the effort. Schoening also cited opportunities for protective coatings on sensors and applications aimed at reducing infrared signatures on vehicles and aircraft. He said George’s role will include evaluating alternative markets and additional growth opportunities. Optex Systems Holdings, Inc (NASDAQ: OPXS) is a technology company specializing in infrared sensing systems for defense and homeland security applications. The company engineers, designs and manufactures electro-optical and infrared (EO/IR) payloads and sensors used across a range of surveillance and targeting platforms. Its core focus areas include mission-critical solutions for unmanned aerial vehicles (UAVs), rotary- and fixed-wing aircraft, and ground-based observation systems. Optex Systems' product portfolio consists of high-resolution thermal imaging cameras, infrared seekers, laser designators and multispectral platforms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Optex Systems Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

RICHARDSON, TX / ACCESS Newswire / August 5, 2026 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a manufacturer of precision optical sighting systems for military and commercial applications, announced today that it plans to report its financial performance for the third quarter of fiscal 2026 on Tuesday, August 11th, 2026. In addition, the Company announced that it will hold an investor conference call on August 11th, 2026, at 5:30pm ET. Investors interested in participating in the live call can dial 800-267-6316 or 203-518-9783 and input conference ID OPXS3Q26. Any financial information discussed on the call will be included in the Company's earnings release, which will be available at https://ir.stockpr.com/optexsys under "Latest Financial Results." ABOUT OPTEX SYSTEMS Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com. Safe Harbor Statement This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions. These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, profit margins and working capital); orders and backlog; the estimated value of IDIQ contracts; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties. Contact:[email protected](972) 764-5718 SOURCE: Optex Systems Holdings, Inc. View the original press release on ACCESS Newswire

Shares of Optex Systems Holdings, Inc. OPXS have gained 5.6% since the company reported results for the quarter ended March 29, 2026, outperforming the S&P 500 Index’s 0.1% move during the same period. However, over the past month, the stock has declined 5.1%, lagging the S&P 500’s 5% gain. Optex reported second-quarter fiscal 2026 net income of 19 cents per share, which declined from 26 cents per share in the prior-year period. Revenues of $9.6 million denoted a 10.3% decrease from $10.7 million in the year-ago quarter. Quarterly net income fell 24.2% year over year to $1.3 million compared with $1.8 million in the prior-year period. Operating income declined 25.6% to $1.7 million, while adjusted EBITDA decreased 16.4% to $2 million. Despite the revenue pressure, gross profit edged up 0.9% to $3.4 million, and gross margin expanded to 35.2% from 31.3% a year earlier. Optex Systems Holdings, Inc. price-consensus-eps-surprise-chart | Optex Systems Holdings, Inc. Quote The company attributed the softer first-half revenue performance to the federal government shutdown and delayed approval of the fiscal 2026 appropriations bill, which postponed several contract awards into the second half of the fiscal year. Management indicated that these delays affected order timing rather than underlying demand. Even with lower sales, Optex improved profitability at the gross margin level. The company said that the margin expansion reflected the completion of legacy loss-making contracts, improved pricing on newer programs and operational efficiencies across both operating segments. The quarterly cost of sales fell to $6.2 million from $7.4 million a year ago, helping offset the decline in revenues. General and administrative expenses rose sharply during the quarter to $1.7 million from $1.1 million in the year-ago period. Optex said that the increase was driven primarily by leadership transition costs, higher stock compensation expense, increased research and development spending and investments tied to Cybersecurity Maturity Model Certification compliance and internal systems upgrades. CEO Chad George said that the company remains positioned to deliver one of its strongest revenue years while continuing to improve gross margins through operational efficiencies and disciplined cost management. He added that increased investment in research and development is intended to support long-term growth and profitability. Optex reported that new orders increased 3.8% year over year to $16.3 million during the first six months of fiscal 2026, signaling stable demand trends despite delays in government contract timing. Working capital rose to $22.6 million. The company ended the quarter with cash and cash equivalents of $4.2 million, down from $6.4 million at the end of fiscal 2025. Inventory increased to $15.6 million from $14.3 million, while accounts receivable rose to $5.7 million from $4.6 million. Total liabilities declined to $4.6 million from $5.8 million at the end of fiscal 2025. Optex also noted that it had no outstanding debt under its revolving credit facility. Management expects stronger revenue performance in the second half of fiscal 2026 based on its funded backlog and anticipated contract awards. The company projected full-year fiscal 2026 revenues in the range of $43-$45 million compared with $41.3 million in fiscal 2025. Optex also forecast full-year adjusted EBITDA between $7.5 million and $8.5 million versus $8 million in fiscal 2025. During the first six months of fiscal 2026, the company invested approximately $0.8 million in capital equipment and disclosed an additional $1.1 million in committed capital expenditures aimed at expanding manufacturing capacity, supporting new product lines and enhancing rapid prototyping and research capabilities. Management highlighted ongoing investments in manufacturing expansion, cybersecurity compliance and research capabilities as part of its broader operational and growth strategy. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Optex Systems Holdings Inc. (OPXS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue for the second quarter of fiscal year 2026 was $96 million, a significant increase from $10.7 million in the prior year period. Gross margin improved to 35.2% for the quarter, up from 31.3% in the previous year, driven by completion of legacy loss-making contracts and improved pricing. New orders increased by 3.8% year-over-year to $16.3 million for the first half, indicating steady demand. The ending backlog was approximately $36.6 million, providing good visibility into the remainder of fiscal year 2026. Optex Systems Holdings Inc (NASDAQ:OPXS) has made significant investments in research and development, manufacturing capabilities, and organizational structure, positioning the company for long-term growth. Operating expenses increased to $1.7 million for the quarter, up from $1.1 million last year, due to leadership transition costs and organizational changes. Net income for the quarter was $1.3 million, down from $1.8 million in the previous year. Adjusted EBITDA declined to $2.0 million for the quarter from $2.4 million last year, reflecting lower revenue volumes and increased operating expenses. Cash and cash equivalents decreased to $4.2 million from $6.4 million at fiscal year end, with $1.3 million used in operating cash flow. The first half of the year was impacted by a federal government shutdown and delays in contract awards, affecting revenue and net income. Warning! GuruFocus has detected 2 Warning Sign with SANG. Is OPXS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of the financial performance for the second quarter of fiscal 2026? A: Karen Hawkins, CFO: Revenue for the second quarter was $96 million, a significant increase from $10.7 million in the prior year period. However, for the first six months, revenue was essentially flat year-over-year at $18.8 million compared to $18.9 million last year. The first half was impacted by a federal government shutdown and delays in contract awards, which are expected to improve in the second half. Gross profit was $3.4 million for the quarter, with a gross margin improvement to 35.2% from 31.3% last year. Q: What factors contributed to the increase in operating expenses? A: Karen Hawkins, CFO: Operating expenses increased by $0.6 million to $1.7 million for the quarter, primarily due to leadership transition costs, higher stock-based compensation, increased R&D investment, compliance and systems upgrades, and inflationary pressures. These expenses are expected to remain elevated as we continue to invest in R&D and enhance internal systems. Q: How did the company perform in terms of net income and adjusted EBITDA? A: Karen Hawkins, CFO: Net income for the quarter was $1.3 million or $0.19 per diluted share, down from $1.8 million last year. Adjusted EBITDA was $2.0 million for the quarter, compared to $2.4 million last year. The decline reflects lower revenue volumes and increased operating expenses. We expect full-year adjusted EBITDA to be in the range of $7.5 million to $8.5 million. Q: Can you elaborate on the company's cash flow and balance sheet status? A: Karen Hawkins, CFO: We ended the quarter with $4.2 million in cash and cash equivalents, down from $6.4 million at fiscal year-end, with no outstanding debt on our revolving credit facility. Operating cash flow was negative $1.3 million, reflecting higher operating expenses and increased inventory purchases to support expected second-half revenue. Working capital remained strong at $22.6 million. Q: What is the outlook for the second half of fiscal 2026? A: Chad George, CEO: We expect a stronger second half as delayed contract awards move forward. Our backlog remains strong at $36.6 million, and we continue to see steady bookings tied to defense programs. We are focused on execution, operational efficiency, and delivering value to our customers and shareholders, with confidence in the long-term direction of the business. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

RICHARDSON, TX / ACCESS Newswire / May 11, 2026 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a manufacturer of precision optical sighting systems for military and commercial applications, today announced financial results for the three and six months ended March 29, 2026. The Q2 earnings call will be held on May 14th at 2pm EST with the Conference Number 800-343-4849 and Conference ID Code: OPXS2Q26. Chad George, CEO of Optex Systems Holdings, Inc., commented: "Optex remains on track to deliver one of the strongest revenue years in the Company's history, while continuing to improve gross margins through operational efficiencies and disciplined cost management. We believe increased investment in research and development positions the Company for long-term growth and stronger profitability moving forward." Three and Six-month Fiscal 2026 Highlights Revenue for the quarter was $9.6 million compared to $10.7 million in the prior year period Six-month revenue totaled $18.8 million, relatively flat compared to the prior year Three-month gross margin improved to 35.2% compared to 31.3% last year Quarterly net income was $1.3 million, or $0.19 per diluted share, compared to $1.6 million, or $0.23 per diluted share last year Quarterly adjusted EBITDA was $2.0 million compared to $2.4 million in the prior year period New orders increased 3.8% year over year to $16.3 million for the first six months Working capital increased to $22.6 million Cash balance totaled $4.2 million with no outstanding debt under the Company's revolving credit facility The Company's first-half revenue was impacted by the federal government shutdown and delayed approval of the fiscal 2026 appropriations bill, which postponed several contract awards into the second half of the fiscal year. Despite the lower revenue, gross profit and gross margins improved due to the completion of legacy loss-making contracts, improved pricing on newer programs, and operational efficiencies across both operating segments. Operating expenses increased primarily due to leadership transition costs, stock compensation expense, higher research and development spending and investments related to CMMC compliance and internal systems upgrades. Fiscal 2026 Outlook Based on current funded backlog and anticipated contract awards, the Company expects stronger revenue performance during the second half of fiscal 2026, with full-year revenue anticipated to range between $43 million and $45 million compared to $41.3 million during fiscal 2025. In addition, the Company expects full-year fiscal 2026 Adjusted EBITDA to range between $7.5 million and $8.5 million compared to $8.0 million in fiscal 2025. During the first six months of fiscal 2026, the Company invested approximately $0.8 million in capital equipment and has an additional $1.1 million in committed capital expenditures focused on expanding manufacturing capacity, supporting new product lines, and enhancing rapid prototyping and research capabilities. Our key performance measures for the three and six months ended March 29, 2026 and March 30, 2025 are summarized below. The table below summarizes our three and six-month operating results for the periods ended March 29, 2026 and December 30, 2025, in terms of both the GAAP net income measure and the non-GAAP Adjusted EBITDA measure. We believe that including both measures allows the reader to better evaluate our overall performance. Optex Systems Holdings, Inc. Condensed Consolidated Balance Sheets The accompanying notes in our Form 10-Q for the three and six months ended March 29, 2026 and our Annual Report on Form 10-K for the twelve months ended September 28, 2025 filed with the SEC on May 11, 2026 and December 17, 2025, respectively, are an integral part of these financial statements. Optex Systems Holdings, Inc. Condensed Consolidated Statements of Income (Unaudited) The accompanying notes in our Form 10-Q for the three and six months ended March 29, 2026 and our Annual Report on Form 10-K for the twelve months ended September 28, 2025 filed with the SEC on May 11, 2026 and December 17, 2025, respectively, are an integral part of these financial statements. About Optex Systems Holdings Optex Systems Holdings, Inc. manufactures optical sighting systems and assemblies primarily for U.S. Department of Defense applications. Its products are installed on military vehicle platforms including the Abrams, Bradley, and Stryker vehicle families, along with numerous surveillance and night vision systems. For more information, visit www.optexsys.com Safe Harbor Statement This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "believe," "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions. These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, Adjusted EBITDA, G&A expenses, profit margins and working capital); customer demand; orders and backlog; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties. Contact: [email protected] 1-972-764-5718 SOURCE: Optex Systems Holdings, Inc. View the original press release on ACCESS Newswire

Shares of Optex Systems Holdings, Inc. OPXS have declined 2.9% since the company reported results for the quarter ended Dec. 28, 2025, underperforming the S&P 500 index, which fell 1.6% over the same period. Over the past month, however, the stock has edged down 0.9%, outperforming the broader market’s 1.9% decline. For the fiscal first quarter of 2026, Optex Systems reported net income of 3 cents per share compared with 12 cents per share in the prior-year quarter. Revenues rose 11.6% year over year to $9.1 million from $8.2 million. The increase was driven primarily by higher production levels and deliveries at the Optex Richardson segment, partially offset by lower sales at the Applied Optics Center. Despite the revenue growth, profitability weakened. Gross profit slipped 1.5% to $2.1 million, and gross margin contracted to 22.9% from 26% a year earlier. Operating income declined sharply to $0.1 million from $0.9 million, while net income fell 71.3% to $0.2 million. Adjusted EBITDA decreased 36% to $0.7 million from $1.1 million. Optex Systems Holdings, Inc. price-consensus-eps-surprise-chart | Optex Systems Holdings, Inc. Quote Optex Richardson posted a 55.9% increase in revenue, or $1.9 million, reflecting increased periscope production, XM30 display periscope assemblies and higher demand for muzzle reference systems and binoculars. In contrast, the Applied Optics Center saw revenue decline 20.1%, or $1 million, due primarily to lower customer demand for laser filters and optical assemblies. Order activity improved during the quarter. The company booked $7.9 million in new orders, up 31.7% from $6 million in the year-ago period. Of the total, $3.8 million was attributable to Optex Richardson and $4.1 million to the Applied Optics Center. Subsequent to quarter-end, the Applied Optics Center received a $2.2 million order for laser interface filters, with deliveries scheduled to begin in the third fiscal quarter of 2026 and extend into the second quarter of fiscal 2027. Management cited a combination of legacy contract dynamics and input cost pressures as key factors affecting margins. Gross margin compression was attributed in part to shipments under long-term loss contracts and increased cost of sales at the Applied Optics Center related to contract loss reserves tied to higher gold usage and pricing. The consolidated gross margin declined from 26% to 22.9% year over year. Operating expenses rose 58.3% to $1.9 million from $1.2 million, driven by higher labor and fringe costs, increased stock compensation and elevated legal and IT service expenses. The company also incurred $0.3 million in non-recurring general and administrative costs associated with a CEO transition and overlapping staffing during senior-level retirements. These higher expenses contributed to an 83.7% drop in operating income. CEO Chad George said sales growth was supported by increased periscope demand and new product development activities for the XM30 program. He acknowledged margin pressure stemming from elevated gold prices on a legacy Abrams day window contract, but indicated that older contracts are rolling off and being replaced with more favorably priced backlog. The company expects higher revenues and gross profits in the second through fourth quarters of fiscal 2026 as legacy loss contracts near completion and revenue shifts toward more profitable product lines. Management also anticipates additional contract awards following the February 2026 passage of a federal funding bill. As of Dec. 28, 2025, Optex Systems reported working capital of $21.2 million compared with $21.1 million as of Sept. 28, 2025. Cash stood at $5.8 million, with no outstanding borrowings under its revolving credit facility. The company used $0.1 million in operating cash during the quarter. OPXS invested $0.5 million during the quarter and plans total capital expenditures of $2.4 million in fiscal 2026 to expand capacity and develop new capabilities. On Feb. 9, 2026, the board terminated the existing stock repurchase program and authorized a new program allowing the company to repurchase up to $10 million of its common stock. The timing and amount of repurchases will depend on market conditions and other factors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Optex Systems Holdings Inc. (OPXS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q1 revenue rose to $9.1 million (up 11.6% YoY) but profitability was pressured—gross margin fell to 22.9%, operating income was $0.1 million and adjusted EBITDA $0.7 million, with management saying this quarter is the lowest-profit period of the year. Optex-Richardson drove growth (revenue +55.9%, orders +46.2%) on periscope and the XM30 program while AOC revenue declined 20.1%; new orders were $7.9 million (up 31.7% YoY), backlog was $37.9 million, and the company announced a post-quarter $2.2 million optical assembly award. The board approved a new stock buyback program authorizing up to $10 million, and management plans roughly $2.4 million of fiscal-2026 capital investments to expand capacity and new-product development while forecasting net income and positive operating cash flow over the next nine months. Interested in Optex Systems Holdings Inc.? Here are five stocks we like better. Optex Systems (NASDAQ:OPXS) reported first-quarter fiscal 2026 results marked by higher revenue and order growth, alongside margin pressure tied to legacy programs and higher costs. Management also disclosed a new stock repurchase authorization and outlined continued capital spending plans aimed at expanding capacity and supporting new product development. For the three-month period ended Dec. 28, 2025, Optex Systems posted revenue of $9.1 million, up 11.6% year over year. Gross profit was $2.1 million, and gross margin declined to 22.9%. → Once Upon A Farm: Buy the $1B Growth Story? Chief Financial Officer Karen Hawkins said margin performance varied by segment. Optex-Richardson margins improved as legacy programs continued to phase out and higher-margin contracts ramped up, while Applied Optics Center (AOC) margins were pressured by higher material costs on the Day Window program. General and administrative expenses increased to $1.9 million, which Hawkins attributed primarily to higher labor costs, stock compensation, and professional services. She said about $0.3 million of the increase was related to leadership transition and temporary overlap of senior roles, and management does not expect those elevated transition-related costs to continue beyond the first quarter. → Verizon: Your Total Return Leader for 2026 Might Be Hiding in Plain Sight Operating income was $0.1 million compared with $0.9 million in the prior-year period. Net income was $0.2 million, and adjusted EBITDA was $0.7 million. Hawkins said the first quarter is expected to represent the company’s lowest profitability of the fiscal year, with operating results improving sequentially as margins recover and revenue increases. Optex-Richardson revenue increased 55.9% year over year, driven by higher periscope production, increased XM30 activity, and stronger demand for muzzle reference systems and binocular products. AOC revenue declined 20.1%, primarily due to lower laser filter and optical assembly volumes. → No Rally? Coca-Cola’s Results Still Look Like a Sweet Deal CEO Chad George, who said this was his first earnings call with the company, described AOC’s thin-film optical coating capabilities and noted the segment supplies coatings to customers including Trijicon, Vortex, Elbit, and L3Harris, as well as internally to Optex-Richardson for armored vehicle periscopes. George said the company expanded and upgraded optical assembly operations during the quarter, adding enhanced environmental controls intended to support capacity and quality requirements for future demand. Within Optex-Richardson, George highlighted periscopes and sighting systems for armored vehicle prime contractors and repair and replacement services for the Defense Logistics Agency. He said the segment was recently awarded a driver periscope assembly design and development contract for the XM30 vehicle, calling it a meaningful opportunity because it is a larger and more sophisticated system than traditional periscopes. To support that program, management said it invested in additional machining and assembly equipment to strengthen the ability to deliver complex assemblies and rapid prototypes. Optex ended the quarter with $5.8 million in cash, compared with $6.4 million at fiscal year-end. Accounts receivable were $4.4 million, down slightly from $4.6 million at year-end. Inventory increased to $15.0 million from $14.3 million as the company ramped up production for the XM30 program and prepared for higher anticipated revenues in coming quarters. Accounts payable decreased to $1.4 million from $1.5 million, which Hawkins said reflected timing differences between inventory receipts and vendor payment terms. Total working capital was $21.2 million, which management described as stable. Operating cash flow was a use of $0.1 million, compared with operating cash generation of $2.8 million in the prior-year quarter. Hawkins attributed the shift primarily to lower profitability, increased inventory, and payments on accounts payable. Capital investments were $0.5 million in the quarter, up from $0.3 million in the prior-year period. Hawkins also said the company increased contract loss reserves by $0.2 million, primarily related to the Applied Optics Day Window program due to higher gold prices and a final award on a legacy Optex-Richardson IDIQ contract. She said both programs are now closed to new orders, with remaining backlog extending into the first quarter of fiscal 2027. The company applied $0.1 million of reserves against shipments during the quarter, and accrued contract loss reserves totaled $0.2 million at period-end, up from $0.1 million in September. Management expects most of the reserves to be utilized during the current fiscal year. New orders totaled $7.9 million, up 31.7% year over year. Optex-Richardson orders rose 46.2% on increased periscope demand, while AOC orders increased 20.6%, led by optical assemblies. Hawkins said the company anticipates additional laser filter awards over the next several quarters as government funding resumes and outstanding proposals convert. Backlog was $37.9 million, down from $42.0 million in the year-ago period, which management attributed primarily to program delays stemming from the 2025 government shutdown. After quarter-end, the company announced a $2.2 million optical assembly award supporting an enhanced night vision program, with deliveries beginning in the third quarter of fiscal 2026. The company also disclosed in an 8-K filing that its board approved a new stock repurchase program on Feb. 9, 2026, authorizing up to $10 million in common stock purchases and replacing the prior program. Management said the timing and volume of repurchases will depend on market conditions and share price. Looking ahead, Hawkins said the company expects to generate net income and positive operating cash flow over the next nine months. In the near term, management plans to fund capital equipment, inventory, engineering resources, and research and development through existing cash, an available line of credit, and operating cash flow. As previously disclosed, the company expects to invest about $2.4 million of excess cash in capital improvements during fiscal 2026, with an additional $0.5 million already committed. Hawkins said the spending is focused on expanding capacity, developing new capabilities, replacing obsolete equipment, and supporting new product lines at AOC, as well as enhancing research and rapid prototyping at Optex-Richardson. Outstanding shares totaled 6,937,358 at the end of the period, compared with 6,920,658 at fiscal year-end. During the quarter, the company issued 16,700 restricted shares to four board members that vest on Jan. 1, 2027. During the call, George said he expects margin performance to improve as older programs wind down and newer backlog converts to revenue, and he emphasized a focus on execution, operational discipline, and innovation. No questions were asked during the Q&A session. Optex Systems Holdings, Inc (NASDAQ: OPXS) is a technology company specializing in infrared sensing systems for defense and homeland security applications. The company engineers, designs and manufactures electro-optical and infrared (EO/IR) payloads and sensors used across a range of surveillance and targeting platforms. Its core focus areas include mission-critical solutions for unmanned aerial vehicles (UAVs), rotary- and fixed-wing aircraft, and ground-based observation systems. Optex Systems' product portfolio consists of high-resolution thermal imaging cameras, infrared seekers, laser designators and multispectral platforms. The article "Optex Systems Q1 Earnings Call Highlights" was originally published by MarketBeat.

RICHARDSON, TX / ACCESS Newswire / February 5, 2026 / Optex Systems Holdings, Inc. (Nasdaq:OPXS), a leading manufacturer of precision optical sighting systems for domestic and worldwide military and commercial applications, announced today that it plans to report its financial performance for the first quarter of fiscal 2026 on Wednesday, February 11th, 2026. In addition, the Company announced that it will hold an investor conference call on February 11th, 2026 at 4:30 pm ET. Investors interested in participating in the live call can dial (833) 316-2483 or (785) 838-9284 with the Conference ID OPXSQ126. Any financial information and required disclosure on non-GAAP financial measures discussed on the call will be included in the Company's earnings release, which will be available at https://ir.stockpr.com/optexsys under "Latest Financial Results." ABOUT OPTEX SYSTEMS Optex, which was founded in 1987, is a Richardson, Texas based ISO 9001:2015 certified concern, which manufactures optical sighting systems and assemblies, primarily for Department of Defense (DOD) applications. Its products are installed on various types of U.S. military land vehicles, such as the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and have been selected for installation on the Stryker family of vehicles. Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors. For additional information, please visit the Company's website at www.optexsys.com. Safe Harbor Statement This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the products and services described herein. You can identify these statements by the use of the words "may," "will," "could," "should," "would," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," "likely," "forecast," "probable," and similar expressions. These forward-looking statements represent our expectations, beliefs, intentions or strategies concerning future events, including, but not limited to, any statements regarding growth strategy; product and development programs; financial performance and financial condition (including revenue, net income, profit margins and working capital); orders and backlog; the estimated value of IDIQ contracts; expected timing of contract deliveries to customers and corresponding revenue recognition; increases in the cost of materials and labor; costs remaining to fulfill contracts; contract loss reserves; labor shortages; follow-on orders; supply chain challenges; the continuation of historical trends; the sufficiency of our cash balances for future liquidity and capital resource needs; the expected impact of changes in accounting policies on our results of operations, financial condition or cash flows; anticipated problems and our plans for future operations; and the economy in general or the future of the defense industry. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs and military spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company's markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in the U.S. Government's interpretation of federal procurement rules and regulations, changes in spending due to policy changes in any new federal presidential administration, market acceptance of the Company's products, shortages in components, production delays due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. You must carefully consider any such statement and should understand that many factors could cause actual results to differ from the Company's forward-looking statements. These factors include inaccurate assumptions and a broad variety of other risks and uncertainties, including some that are known and some that are not. No forward-looking statement can be guaranteed, and actual future results may vary materially. The Company does not assume the obligation to update any forward-looking statement. You should carefully evaluate such statements in light of factors described in the Company's filings with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various filings the Company has identified important factors that could cause actual results to differ from expected or historic results. You should understand that it is not possible to predict or identify all such factors. Consequently, you should not consider any such list to be a complete list of all potential risks or uncertainties. Contact: [email protected] (972) 764-5718 SOURCE: Optex Systems Holdings, Inc. View the original press release on ACCESS Newswire

Shares of Optex Systems Holdings, Inc. OPXS have declined 1.4% since the company reported its earnings for the fiscal year ended Sept. 28, 2025. This compares to the S&P 500 index’s 0.5% growth over the same time frame. Over the past month, the stock has gained 4% compared with the S&P 500’s 1.7% increase. Optex Systems posted earnings per share of 74 cents for the fiscal year, which rose from 55 cents in the prior fiscal year. Revenues rose to $41.3 million from $34 million, highlighting a 21.6% year-over-year increase. The company’s gross profit improved by 26.5%, climbing to $12.1 million from $9.5 million, while gross margin also expanded from 28% to 29.2%. Operating income surged 47.9% to $7.1 million compared to $4.8 million a year earlier, reflecting improved operational efficiency and product mix. Net income applicable to common shareholders grew 36.6% year over year, reaching $5.1 million, up from $3.8 million in fiscal 2024. Optex Systems Holdings, Inc. price-consensus-eps-surprise-chart | Optex Systems Holdings, Inc. Quote The company's adjusted EBITDA, a non-GAAP metric, increased 40.1% to $8 million from $5.7 million in the prior year. This improvement was primarily attributed to higher revenues and gross profits. Operating cash flow was strong at $6.9 million, driven by higher net income and non-cash adjustments. Optex Systems' order intake during the year was slightly down at $36.2 million, a 0.5% decline compared to $36.4 million in the previous fiscal period. Management cited delays in the award of key defense contracts — specifically the ARC III Abrams replenishment and BNVG Night Vision Goggle programs — as contributing factors. These delays, alongside the U.S. federal government shutdown from Oct. 1 to Nov. 12, 2025, and subsequent continuing resolution (CR) through Jan. 30, 2026, caused a slowdown in new contract awards. The company's working capital improved significantly to $21.1 million as of the fiscal year-end, up from $15.1 million the previous year. Cash and cash equivalents grew to $6.4 million, while the company cleared its outstanding balance on a $3 million revolving credit line, showing a stronger liquidity position. CEO Danny Schoening characterized fiscal 2025 as an “exciting year” for Optex Systems, emphasizing the 21.6% revenue growth and operational gains. He credited increased production throughput, especially a 56% boost in periscope line production at the Richardson segment, and elevated demand for military products at the Applied Optics Center (AOC). Schoening also highlighted progress in reducing net inventory, aligning with earlier strategic commitments. Revenue growth was broad-based, with the Optex Richardson segment experiencing a 30.8% jump in sales, and the AOC segment seeing an 11.1% increase. The production gains at Richardson stemmed from higher throughput, while AOC benefited from military demand, albeit slightly tempered by weaker demand for optical assemblies. Gross margin expansion was aided by better absorption of fixed overheads due to higher revenues, alongside a favorable product mix. However, net income gains were partially offset by a $0.8 million impairment on the Speedtracker product line and a $0.2 million rise in federal income tax expense. Management cautioned that continued funding delays and uncertainty surrounding U.S. government appropriations may affect revenue performance from the second quarter onward. These macro uncertainties could impact both order flow and revenue recognition in upcoming quarters. However, Optex Systems also indicated plans to invest $2.4 million in capital expenditures over the next 12 months to upgrade equipment and develop new capabilities, particularly to support new product lines at AOC and enhance R&D and prototyping at Richardson. This suggests a long-term growth mindset despite near-term headwinds. On the leadership front, Optex Systems announced that CEO Danny Schoening will resign effective Dec. 20, 2025. He will remain chairman of the board and serve as the company’s facilities security officer. President Chad George will take over as CEO on the effective date. George brings two decades of experience in defense operations and supply chain management, with prior roles at Leonardo DRS and Raytheon. The transition marks a notable leadership shift as the company continues its strategic expansion and seeks to capitalize on its strengthened operational footing. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Optex Systems Holdings Inc. (OPXS): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research