Optex Systems Holdings, Inc. (NASDAQ:OPXS)

Optex Systems Holdings, Inc. (NASDAQ:OPXS) ($11.84; $81.9M market cap) announced a new contract award:

Key highlights:

• Awarded an up to $10.2 million, five-year requirements contract by Army Contracting Command – Detroit Arsenal

• Contract is for Abrams-based optical sighting systems

• Estimated first-year order exceeds $4.3 million, with deliveries beginning in FY2026

• Current backlog exceeds $39.2 million

"Optex Systems is honored to be selected for this vital optical sighting system, which highlights many of the company's core competencies. The demanding specifications provided by the customer necessitated a sophisticated and tightly integrated optical solution that only Optex Systems could deliver. The contract estimates the first-year order amount to exceed $4.3 million, enabling economies of scale, with deliveries scheduled to begin in fiscal year 2026." – Danny Schoening, CEO

Our Quick Take:

During our June Open Forum, Maj discussed the InfoArb in OPXS’ backlog. You can see that clip here. 

Optex Systems Holdings, Inc. manufactures optical sighting systems and components for military, commercial, and consumer use, including periscopes, thermal sights, howitzer aiming devices, and precision optical assemblies for use on military land vehicles and weapons systems.

Optex Systems Holdings, Inc. (NASDAQ: OPXS) ($11.94; $82.5M market cap) announced a $2.8 million optical sighting system contract award:

"We are pleased to have been chosen for this critical optical assembly which encompasses many of Optex's core competencies. The customer's requirements, including a limited space claim, dictated an extremely complex optical design. By utilizing optical building blocks from previous designs combined with emerging technology, Optex will provide an elegant, robust, and serviceable solution." — Danny Schoening, CEO

Key highlights:

• Awarded a $2.8 million purchase order from a major U.S. prime contractor for 13 optical sighting systems supporting the XM30 Combat Vehicle
• Deliveries scheduled for fiscal 2026
• Contract contributes to a total company backlog now exceeding $41.4 million

Optex Systems Holdings, Inc. manufactures optical sighting systems and components for military, commercial, and consumer use, including periscopes, thermal sights, howitzer aiming devices, and precision optical assemblies for use on military land vehicles and weapons systems.

Optex Sys Holdings (OOTC:OPXS) ($7.92, $54.0m market cap), announced Q2 results:

• Q2 sales of $8.5 million  vs $6.4 million in the prior year
• Q2 EPS of $0.16 vs EPS of $0.07 in the prior year
• Backlog as of March 31, 2024 was $44.2 million, compared to a backlog of $41.6 million as of April 2, 2023, representing an increase of $2.6 million, or 6.3%.

"After a great start to the year, we've now reached an excellent mid-year pace as we continue to execute on the record level backlog. A strengthened supply chain and continued customer wins are enabling solid operating leverage for our committed workforce. Good parts, on time, at world class value continues to be our mission."

OPXS manufactures optical sighting systems and assemblies, primarily for Department of Defense applications.

Optex Sys Holdings (OOTC:OPXS) ($5.29; $35.8m market cap) announced the acquisition of Speedtracker, a cutting-edge chronograph designed to measure projectile velocity, has emerged as a game-changer for enhancing shooter accuracy.

“This partnership with Optex heralds an exciting chapter for Speedtracker, propelling its growth while allowing RUB's technical team to focus on pushing the boundaries of radar-based chronograph technology. We eagerly anticipate where the journey will lead in this ongoing relationship.

The Company acquired Speedtracker using cash on hand, with potential additional future cash payments based on successful completion of defined milestones. Initially launched in August of 2022, and with several thousand units in field, the Company intends to enhance the distribution and growth of the Speedtracker line.”

Optex Sys Holdings (OOTC:OPXS) ($4.11, $27.7m market cap), announced Q4 and full year 2023 results:

• Q4 sales of $8.1 million  vs $6.7 million in the prior year
• Q4 EPS of $0.21 vs $0.12 in the prior year
• Full year sales of $25.6 million vs $22.3 million in the prior year
• Full year EPS of $0.34 vs $0.16 in the prior year

"This was another strong year for Optex. Our backlog has grown to historic highs and with this, a growing set of new customers bringing multi-year programs further broadening our product mix. Our customers continue to design our products into their latest platforms and reward us for the value that we provide. Supply chain issues continue to improve which increases our own factory efficiencies. As stated last year, 2022 was indeed a strong and fulcrum year yielding continued revenue growth, profitability and product mix for 2023. Given the record backlog stated earlier, we anticipate these trends to continue in 2024."

Recall that GeoTeam Member Michael Liu published a bullish article on the company on July 13, 2018, “Optex Systems – As Large Stakeholder Sells Shares, Downside Protection Apparent”. The stock was trading at ~$1.10 at that time.

Optex Sys Holdings (OOTC:OPXS) ($1.08, $8.9M market cap), a company that manufactures optical sighting systems and assemblies, for the United States Department of Defense, foreign military applications and commercial markets, announced Q3 2018 results. Recall that GeoTeam Member Michael Liu published a bullish article on the company on July 13, 2018, “Optex Systems – As Large Stakeholder Sells Shares, Downside Protection Apparent”, where he presented a pitch that included a breakdown of the company’s business and why the stock may be mispriced.

The reported numbers for Q3 were as follows:

• Sales of $6.1 million vs $4.3 million in the prior year
• Non-GAAP EPS of $0.07 vs $0.01 in the prior year

Based on increased backlog and orders during the first nine months, Optex Systems Holdings, Inc. anticipates a strong performance for the fiscal year ending September 30, 2018 as compared to fiscal year 2017 performance.   Increased customer demand and backlog levels paired with accelerated production and delivery rates for our both our military and commercial products, combined with increased gross margins and lower general and administrative spending, are projected to continue throughout the balance of the year and into the first half of fiscal year 2019.

Danny Schoening, CEO of Optex Systems Holdings, Inc. commented, “We continue to report increased revenue, increased gross margins, and increased earnings.  The growing revenues have leveraged into higher factory efficiencies and the cost control programs have combined with these efficiencies to drive improved earnings.  We continue to hold our shareholders, our customers, and our employees as our top priorities as we continue to strengthen the balance sheet.”