Optex Systems 2025 Q2 Earnings Strong Performance as Net Income Surges 66.5%
Wednesday, May 14, 2025 9:05 am ET
4min read Optex Systems (OPXS) reported its fiscal 2025 Q2 earnings on May 13th, 2025. Optex Systems exceeded market expectations, showcasing a robust financial quarter with a notable increase in revenue and net income. The company maintained its guidance, anticipating continued growth driven by increasing demand and strategic contracts. The recent $5.7 million award for laser filter units underscores their confidence in future prospects, reflecting optimism for sustained revenue expansion and operational efficiency enhancements.
Revenue
Optex Systems reported a significant revenue increase of 25.9% in Q2 2025, totaling $10.73 million, compared to $8.52 million in Q2 2024. The Optex Richardson segment contributed $6.32 million, demonstrating strong performance. The Applied Optics Center in Dallas generated $4.73 million, further bolstering overall revenue. Other segments saw a decrease, with losses amounting to $322,000. In total, consolidated revenue reached $10.73 million.
Earnings/Net Income
Optex Systems's EPS climbed 62.5% to $0.26 in 2025 Q2 from $0.16 in 2024 Q2, demonstrating robust earnings growth. Net income strengthened by 66.5%, achieving $1.77 million in 2025 Q2 compared to $1.06 million in 2024 Q2. The company's EPS performance was strong, reflecting positive financial outcomes.
Price Action
The stock price of Optex Systems has edged up 1.04% during the latest trading day, has jumped 13.15% during the most recent full trading week, and has surged 41.79% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Optex Systems shares following revenue increases on earnings release dates and holding for 30 days has yielded moderate returns over the past five years, albeit with some volatility. The strategy achieved a 38% total return from May 2020 to May 2025, slightly underperforming the S&P 500's 46%. In 2020, the strategy saw over 40% returns due to a market rally and positive earnings news, while 2021 and 2022 delivered more modest returns of 10% and 15%, respectively. A decline of approximately 5% occurred in 2023, followed by a flat performance in 2024. The strategy demonstrated higher volatility than the S&P 500, particularly in 2020 and 2021 amid significant market fluctuations, indicating potential for high returns but also increased risk. Additionally, the short holding period may result in substantial short-term capital gains taxes, impacting after-tax returns. While showing potential in 2020, the strategy underperformed the market slightly over five years, suggesting investors should assess their risk tolerance and tax implications before adopting it.
CEO Commentary
Danny Schoening, CEO of Optex Systems Holdings, Inc., expressed pride in announcing a record-breaking quarter for revenue, attributing this success to the company’s commitment to excellence and customer support. He emphasized that the increase in revenue was driven by heightened periscope production capacity and a surge in demand for laser filters. Schoening highlighted the strength of the team and customer trust as critical elements in achieving these results. As the company celebrates this milestone, he reaffirmed their dedication to maintaining high standards while pursuing continued growth.
Guidance
Optex Systems anticipates ongoing growth driven by increasing customer demand and upcoming contracts, as evidenced by the $5.7 million award announced for laser filter units to be delivered between August 2025 and December 2026. The company remains focused on enhancing production capabilities and meeting customer expectations, positioning itself favorably for future opportunities. The management expresses optimism about sustaining revenue growth and improving operational efficiency in the coming periods.
Additional News
Optex Systems Holdings has recently secured a $5.7 million contract for laser filter units with deliveries scheduled between August 2025 and December 2026, highlighting their continued focus on military applications. The Applied Optics Center division will manage this contract, emphasizing eye protection for troops under the XM157 program, contributing to a backlog exceeding $46 million. Additionally, Optex Systems will present at the 15th Annual LD Micro Invitational, showcasing its progress and future growth prospects. CEO Danny Schoening expressed enthusiasm about the event, which serves as a platform to connect with investors and discuss strategic initiatives.
Revenue
Optex Systems reported a significant revenue increase of 25.9% in Q2 2025, totaling $10.73 million, compared to $8.52 million in Q2 2024. The Optex Richardson segment contributed $6.32 million, demonstrating strong performance. The Applied Optics Center in Dallas generated $4.73 million, further bolstering overall revenue. Other segments saw a decrease, with losses amounting to $322,000. In total, consolidated revenue reached $10.73 million.
Earnings/Net Income
Optex Systems's EPS climbed 62.5% to $0.26 in 2025 Q2 from $0.16 in 2024 Q2, demonstrating robust earnings growth. Net income strengthened by 66.5%, achieving $1.77 million in 2025 Q2 compared to $1.06 million in 2024 Q2. The company's EPS performance was strong, reflecting positive financial outcomes.
Price Action
The stock price of Optex Systems has edged up 1.04% during the latest trading day, has jumped 13.15% during the most recent full trading week, and has surged 41.79% month-to-date.
Post-Earnings Price Action Review
The strategy of purchasing Optex Systems shares following revenue increases on earnings release dates and holding for 30 days has yielded moderate returns over the past five years, albeit with some volatility. The strategy achieved a 38% total return from May 2020 to May 2025, slightly underperforming the S&P 500's 46%. In 2020, the strategy saw over 40% returns due to a market rally and positive earnings news, while 2021 and 2022 delivered more modest returns of 10% and 15%, respectively. A decline of approximately 5% occurred in 2023, followed by a flat performance in 2024. The strategy demonstrated higher volatility than the S&P 500, particularly in 2020 and 2021 amid significant market fluctuations, indicating potential for high returns but also increased risk. Additionally, the short holding period may result in substantial short-term capital gains taxes, impacting after-tax returns. While showing potential in 2020, the strategy underperformed the market slightly over five years, suggesting investors should assess their risk tolerance and tax implications before adopting it.
CEO Commentary
Danny Schoening, CEO of Optex Systems Holdings, Inc., expressed pride in announcing a record-breaking quarter for revenue, attributing this success to the company’s commitment to excellence and customer support. He emphasized that the increase in revenue was driven by heightened periscope production capacity and a surge in demand for laser filters. Schoening highlighted the strength of the team and customer trust as critical elements in achieving these results. As the company celebrates this milestone, he reaffirmed their dedication to maintaining high standards while pursuing continued growth.
Guidance
Optex Systems anticipates ongoing growth driven by increasing customer demand and upcoming contracts, as evidenced by the $5.7 million award announced for laser filter units to be delivered between August 2025 and December 2026. The company remains focused on enhancing production capabilities and meeting customer expectations, positioning itself favorably for future opportunities. The management expresses optimism about sustaining revenue growth and improving operational efficiency in the coming periods.
Additional News
Optex Systems Holdings has recently secured a $5.7 million contract for laser filter units with deliveries scheduled between August 2025 and December 2026, highlighting their continued focus on military applications. The Applied Optics Center division will manage this contract, emphasizing eye protection for troops under the XM157 program, contributing to a backlog exceeding $46 million. Additionally, Optex Systems will present at the 15th Annual LD Micro Invitational, showcasing its progress and future growth prospects. CEO Danny Schoening expressed enthusiasm about the event, which serves as a platform to connect with investors and discuss strategic initiatives.
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