IEH Corporation Reports 41.3% Revenue Growth and Improved Net Loss in Latest Quarter

IEH Corporation reported significant financial improvements in its latest quarterly filing, with revenues for the three months ended December 31, 2024, reaching $7.2 million, a 41.3% increase from $5.1 million in the same period last year. For the nine months ending December 31, 2024, the company generated $21.7 million in revenue, up 48.4% from $14.6 million in the prior year. The growth was primarily driven by a substantial increase in defense revenues, which rose by 85%, and a 366% surge in space-related revenues, reflecting ongoing investments in commercial space programs. However, commercial aerospace revenues declined by 38%, attributed to challenges faced by a major aircraft manufacturer.

Despite the revenue growth, IEH Corporation reported a net loss of $61,640 for the three months ended December 31, 2024, an improvement from a loss of $926,053 in the same quarter of 2023. For the nine-month period, the company achieved a net income of $577,590, a significant turnaround from a loss of $3.3 million in the previous year. The cost of products sold increased to $5.6 million for the latest quarter, up 24.3% year-over-year, but was offset by production efficiencies gained from higher production volumes. Selling, general, and administrative expenses also rose by 15.6% to $1.6 million, primarily due to increased marketing and sales commissions.

Operationally, IEH Corporation maintained a steady workforce, with 2,380,251 shares of common stock outstanding as of December 31, 2024. The company continues to serve a diverse customer base across various industries, including defense, aerospace, and commercial electronics. The defense sector accounted for 60.8% of total revenue in the latest quarter, while commercial aerospace and space sectors contributed 18.7% and 17.3%, respectively. The company’s backlog of orders stood at approximately $12.8 million, indicating a healthy demand for its products.

Looking ahead, IEH Corporation remains optimistic about its growth trajectory, citing strong orders from defense customers and a robust market for commercial space projects. However, the company acknowledges potential risks, including inflationary pressures, geopolitical uncertainties, and competition, which could impact its financial performance. Management believes that existing cash reserves, along with cash generated from operations, will be sufficient to meet anticipated cash requirements for fiscal year 2025 and into fiscal year 2026. The company is also evaluating the potential need for additional capital to support future growth initiatives.