Optex Systems Holdings, Inc. (OPXS) research, news, and more from GeoInvesting

Company description

Wed, 30 Nov 2016 00:21:52 GMT

Optex Systems Holdings, Inc. manufactures and sells optical sighting systems and assemblies primarily for the U.S. Department of Defense, foreign military applications, and commercial markets in the United States. It offers electronic sighting systems; mechanical sighting systems; laser and non-laser protected plastic and glass periscopes; howitzer sighting systems; thermal day/night periscopes; ship binoculars; replacement optics; and optical assemblies and laser filters. The company also provides various periscope configurations, rifle and surveillance sights, and night vision optical assemblies; and precision optical assemblies utilizing thin film coating capabilities for optical systems and components primarily used for military purposes. Its products are installed on various types of U.S. military land vehicles, such as the Abrams, Bradley, and Stryker families of fighting vehicles, as well as light armored and armored security vehicles. Optex Systems Holdings, Inc. offers its products directly to the federal government, prime contractors, and foreign governments. The company was founded in 1987 and is headquartered in Richardson, Texas. Optex Systems Holdings, Inc. is a subsidiary of Sileas Corporation.

Research

Wed, 23 Jul 2025 14:34:55 GMT

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.

Research

Tue, 08 Jul 2025 18:04:33 GMT

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

Research

Thu, 19 Dec 2024 05:00:00 GMT

Optex Sys Holdings (OOTC:OPXS) ($7.78, $53.3m market cap), announced Q4 and full year 2024 results:

Q4 sales of $9.4 million vs $8.1 million in the prior year
Q4 EPS of $0.14 vs EPS of $0.21 in the prior year
Full year sales of $33.9 million vs $25.6 million
Full year EPS of $0.55 vs $0.34 in the prior year

"To build on last year's comments, this was again, another strong year for Optex. This was accomplished with multi-year wins on every major platform that we support. Laser Protected Periscopes, Laser Filter Units, Laser Interference Filters, M22 Binoculars, and other optical assemblies have filled our backlog and driven favorable factory leverage at both of our facilities. In addition, our suppliers have stepped up to the delivery challenges and we've selectively increased various internal bottlenecks to fuel the output. I would like to thank all of our employees, customers, and shareholders for their continued support in 2024 as we anticipate these trends to continue in 2025."

Research

Wed, 14 Aug 2024 15:51:00 GMT

Optex Sys Holdings (OOTC:OPXS) ($7.78, $53.3m market cap), announced Q3 results:

Q3 sales of $9.0 million vs $7.1 million in the prior year
Q3 EPS of $0.18 vs EPS of $0.09 in the prior year

“It was an excellent quarter across the board. With supply chain constraints easing, automation efforts coming on line, and more appropriate staffing levels, we are shipping product at an increased velocity. I can't say enough about our employees' willingness to put in the extra effort to meet our customer's demands. Our products are mission critical and we thank the entire Optex team for their dedication."

Optex Systems Holdings, Inc manufactures and sells optical sighting systems and assemblies primarily for the U.S. department of defense, foreign military applications, and commercial markets in the United States.

Research

Tue, 14 May 2024 18:31:40 GMT

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.

Research

Tue, 13 Feb 2024 16:09:03 GMT

Optex Sys Holdings (OOTC:OPXS) ($5.78, $39.4m market cap), announced Q1 and full year 2024 results:

Q1 sales of $6.9 million vs $4.0 million in the prior year
Q1 EPS of $0.06 vs a loss of $0.03 in the prior year

"We are off to a great start in 2024. Our results clearly show that the supply chain is strengthening and we are successfully executing on the historically high backlog. Demand remains high as Optex and our customers continue to achieve wins in the marketplace. The future is very exciting."

Investors may be hesitant due to the sequential down performance from the seasonal strong Q4 as well as new orders decreasing year over year by 9.8%, despite the overall backlog being higher year over year and sequentially.

“Backlog as of December 31, 2023 was $45.0 million as compared to backlog of $40.1 million as of January 1, 2023 and $41.8 million as of October 1, 2023, representing an increase of 12.2% and 7.7%, respectively.”

The good news is that, as disclosed in the 10-Q filing, revenue for the next 3 quarters is expected to be $8.0 to $9.6 million, putting them on par with Q4 2023.

However, the difficulty we have in calculating estimated EPS on a quarterly basis is somewhat difficult because it seems the company has meaningful volatility in its quarterly gross margins. At this point we need to reach out to management to determine if the backlog consists of higher gross margins.

Speaking of gross margins, we clipped out a section of our January 18, 2024 Investor Insights Skull Session with Tim Heitman on the subject of gross margins, which sheds light on the importance of the data point and how it can be applied in stock valuation models, and is quite relevant in instances when it comes up in our specific company updates and research.

Research

Mon, 22 Jan 2024 15:17:59 GMT

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.”

Research

Tue, 19 Dec 2023 19:14:38 GMT

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.

Research

Tue, 27 Dec 2022 13:09:51 GMT

Optex Sys Holdings (OOTC:OPXS), a company that manufactures optical sighting systems and assemblies, for the United States Department of Defense, foreign military applications and commercial markets, announced Q4 2022 results:

Sales of $6.7 million vs $5.1 million in the prior year
Non-GAAP EPS of $0.12 vs $0.03 in the prior year

“This was an exceptionally strong year for Optex, driven by outstanding fourth quarter shipments of $6.7M in Revenue driving an adjusted fourth quarter EBITDA of $1.4M. Our backlog is strong and growing with new customers bringing multi year programs further broadening our product offerings. Our customers continue to design our products into their latest platforms and reward us for the value that we provide. Finally, our shareholders expressed strong support for our stock tender which we believe was an excellent use of our surplus capital. Supply chain issues will continue to cause some headwinds during the first quarter of 2023; however, our team's actions have already mitigated any long-term effects of a still strained supply chain. While 2022 was a strong and fulcrum year, we believe continued revenue growth, profitability and diversity in programs is a realistic goal for 2023."

Material shortages and labor challenges could impact Q1 2023:

“We have experienced significant material shortages during the three months ended October 2, 2022 and extending into the first three months of fiscal year 2023 from two significant suppliers of our periscope covers and housings. These shortages affect several of our periscope products at the Optex Richardson segment. The delays in key components, combined with labor shortages during the first quarter of fiscal year 2023 to date have negatively impacted our production levels and have pushed the expected delivery dates into the second and third quarters of fiscal year 2023.”

Research

Fri, 01 Feb 2019 18:51:20 GMT

Optex Sys Holdings (OOTC:OPXS) ($1.80, $15m market cap), a company that we previously included in our Border Security Screen, has silently crept up to new highs this week after experiencing a rough end to 2018. This is a company that one of our contributors, Michael Liu (@michael2017l), wrote about on July 13, 2018. His article revolved around the fact that Optex has a monopoly in selling laser-protected periscopes to the US military.

You can read about it here, where Michael breaks down the company’s market segments, discusses downside protection and touches upon valuation.

We’ll be keeping our eye on the stock’s move as it inches closer to $2.00 ahead of its next earnings release, a level it hasn’t been at in more than 2 years.

Research

Tue, 14 Aug 2018 14:41:43 GMT

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.”

Research

Mon, 16 Jul 2018 14:31:05 GMT

GeoInvesting equity analyst Michael Liu published an article on Optex Sys Holdings (OOTC:OPXS) ($1.10, $9.5M market cap), a company that manufactures optical sighting systems and assemblies, for the United States Department of Defense, foreign military applications and commercial markets. His pitch includes some reasons why he believes there is downside protection on the stock’s price and some points on valuation.

Please see the article here.

Research

Fri, 15 Jun 2018 15:15:55 GMT

Optex Sys Holdings (OOTC:OPXS) ($1.08; $9.3M market cap) has a monopoly (100% market share) in the laser-protected periscope market. They mainly put their periscopes on heavily armored military vehicles. The market is somewhat recurring because these periscopes need regular maintenance and replacement: because they are on the outside of tanks, they are often shot at. OPXS previously had one major competitor who only competed on price and started a massive price war. This competitor then went bankrupt in 2013, leaving OPXS to dominate the industry. OPXS hasn’t lost a laser-protected periscope contract in 4 years. This is their military segment, accounting for the majority of revenues.

Since 2013, revenues and margins have grown every year. True revenue growth is obfuscated by a rapidly-declining foreign segment; however, that segment now accounts for <10% of sales (down from 30% in 2013). Meanwhile, OPXS’s commercial segment has grown at 50%/year, riding on the coattails of an exclusive contract to supply US-made scopes to Nightforce Optics, which itself is growing 20-30%/year.

Overall, at this point, we have a military segment with a monopoly in a recurring market growing maybe mid single digits, and a rapidly growing commercial segment which OPXS is still aggressively expanding into (starting to sell on Amazon, where GM is expected to be 2x current GM). Also, the company just reached breakeven last year and trades at 8x annualized 1H 2018 EBIT. I think margins can improve even further if they continue to grow.

Caveats:

Their long-time large shareholder, Longview, is currently in the process of winding down their fund, and has already reduced their 30% position to 10%, mainly with open market sells. This has likely put an overhang on the stock, which may continue if their continue to liquidate their remaining position on the open market.
Management ownership is weak, and they acquired their entire stakes at 50%+ discounts to market values.