BK Technologies Reports $2.1 Million Net Income and 4.5% Revenue Growth in Q1 2025

BK Technologies Corporation reported its financial results for the first quarter of 2025, revealing a net income of approximately $2.1 million, or $0.60 per basic share, compared to a net income of $681,000, or $0.19 per share, for the same period in 2024. The company's revenue for the quarter increased by 4.5% to $19.1 million, driven primarily by strong demand for its BKR series radio products. Gross profit margins improved significantly to 47.0%, up from 34.5% in the prior year, reflecting a favorable sales mix and cost reductions associated with the transition of manufacturing to East West Manufacturing, LLC.

In terms of operational performance, BK Technologies reported a notable increase in operating income, which rose to approximately $2.9 million from $983,000 in the previous year. The company's selling, general, and administrative expenses also increased to $6.0 million, representing 31.7% of sales, compared to $5.3 million, or 29.1% of sales, in the same quarter of 2024. This rise in expenses was attributed to costs associated with new product introductions and an accrual for restricted stock unit issuance.

The company’s balance sheet as of March 31, 2025, showed total assets of $56.1 million, up from $51.5 million at the end of 2024. Current assets increased to $39.8 million, primarily due to higher cash and trade accounts receivable. BK Technologies reported working capital of approximately $24.6 million, with cash and cash equivalents totaling $8.9 million. The company has not utilized its revolving line of credit with Fifth Third Bank, which has a maximum commitment of $6 million, indicating a strong liquidity position.

Strategically, BK Technologies is expanding its Solutions business unit, which will include new public safety applications under the BK ONE brand. The company has also entered into a Master Supply Agreement with East West Manufacturing, which will serve as the exclusive third-party manufacturer for its radio product line. This transition is expected to enhance production efficiency and reduce costs. The company’s backlog of unshipped orders was approximately $18.8 million as of March 31, 2025, reflecting ongoing customer demand.

Looking ahead, BK Technologies anticipates continued growth driven by its product offerings and market demand. However, the company acknowledges potential challenges, including geopolitical tensions, inflationary pressures, and supply chain disruptions, which could impact future performance. Management remains focused on leveraging its operational strengths and expanding its market presence to navigate these challenges effectively.