Clearfield Raises 2025 Net Sales Outlook to $180M-$184M Amid Market Growth and New Product Launches

Clearfield has increased its 2025 net sales outlook to $180-$184M, driven by growing market share through new product launches. Q3 net sales reached $49.9M, up 2% YoY and near the top end of guidance. CEO Cheryl P. Beranek attributed the growth to the Clearfield segment's sales.

Clearfield, Inc. (CLFD) has increased its 2025 net sales outlook to $180-$184M, driven by growing market share through new product launches. The company reported Q3 net sales of $49.9M, up 2% year-over-year (YoY) and near the top end of its guidance range [1]. CEO Cheryl P. Beranek attributed the growth to the Clearfield segment's sales, which saw a 15% YoY increase.

Beranek highlighted the company's three-pillar strategy: protecting core customers, leveraging market position for new opportunities, and targeting select adjacent markets. The FieldSmart FiberFlex 600 Powered Cabinet and the TetherSmart MFT are two key products that are under review by target customers in the wireless provider markets due to their innovative design and configurability [1].

The company's gross margin improved to 30.5% from 21.9% in the previous quarter, driven by continued improvements in overhead absorption, recoveries of previously reserved excess inventory, and optimized capacity for current and growing product lines at North American facilities [1].

Clearfield expects annual revenue growth for the Clearfield segment to be "in line or above industry growth," with annual revenue from the Nestor segment expected to "fall slightly year-over-year as we continue to focus on improving margins" [1]. The company raised its fiscal 2025 net sales outlook to $180-$184M from the previous quarter's $170-$185M range, and for Q4 fiscal 2025, guidance is for net sales in the range of $47-$51M and net income per share in the range of $0.03-$0.11 [1].

CFO Daniel R. Herzog stated, "Our guidance reflects the evolving tariff situation currently in place, which we do not believe will materially affect our operating results" [1]. The company is also considering alternative suppliers to address potential delays in the supply chain, which has been affected by tariffs and cross-border logistics [1].

Management identified ongoing uncertainty related to BEAD funding, which has delayed revenue from small carrier customers. However, the company remains committed to innovation and expects new product introductions to drive future revenue growth, positioning Clearfield to benefit from industry trends in fiber deployment and connectivity [1].

References:
[1] https://seekingalpha.com/news/4480812-clearfield-increases-2025-net-sales-outlook-to-180m-184m-as-market-share-grows-with-new