BK Technologies Raises Guidance as Risks Dissipate

BK Technologies has raised its guidance following the dissipation of risks related to a government client's cost-cutting measures that impacted its margins. The company's main client had initially aimed to reduce expenses and tariffs, but this has since been resolved, leading to an improved outlook for BK Technologies.

BK Technologies Corporation (NYSE American: BKTI) has announced an upward revision to its full-year financial targets, reflecting improved margins and increased revenue projections. The company attributed the positive outlook to the resolution of cost-cutting measures implemented by a major government client, which had initially posed risks to its margins.

During the second quarter of 2025, BK Technologies reported revenue of $21.2 million, a 4.5% increase compared to the same period last year. Gross margin improved to 47.4%, up from 37.3% in the second quarter of 2024. The company's GAAP diluted EPS for the quarter was $0.96, compared to $0.47 in the same period last year. Non-GAAP diluted adjusted EPS was $1.30, up from $0.55 in the second quarter of 2024 [1].

BK Technologies also announced a $12.9 million purchase order from the USDA Forest Service subsequent to the quarter, demonstrating the growing demand for its BKR Series radios. The company expects to deliver high single-digit revenue growth for the full year 2025, with gross margins exceeding 47%. The full-year GAAP diluted EPS target was raised to $3.15 per share from $2.40 per share, and the non-GAAP diluted adjusted EPS target was increased to $3.80 per share from $2.80 per share [1].

The resolution of the government client's cost-cutting measures has significantly contributed to the company's improved outlook. BK Technologies' CEO, John Suzuki, commented, "We delivered strong operational execution in the second quarter of 2025, underscored by higher than expected gross margins of 47.4% and significantly improved profitability. Federal order activity surged following the close of the second quarter, led by multiple purchase orders from the USDA Forest Service, totaling $12.9 million" [1].

BK Technologies will host a conference call today, August 14, 2025, at 9:00 a.m. Eastern Time to discuss the results and the revised financial targets. Investors and shareholders can participate by dialing (888) 506-0062 or (973) 528-0011 and using access code: 189911. The call and accompanying slide deck will also be webcast at [https://www.webcaster4.com/Webcast/Page/2208/52724](https://www.webcaster4.com/Webcast/Page/2208/52724) [1].

References:
[1] https://www.bktechnologies.com/bk-technologies-announces-second-quarter-2025-results/