LGL Group Reports 3.4% Revenue Growth but Faces Net Income Loss in Q1 2025

The LGL Group, Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $918,888, a 3.4% increase from $888,000 in the same period last year. The growth was primarily driven by a 27% rise in net sales, which reached $498,000 compared to $392,000 in the prior year, attributed to a higher backlog as of December 31, 2024. However, net investment income decreased by 16.4% to $417,000, down from $499,000, reflecting lower yields on investments in U.S. Treasury money market funds.

Total expenses for the quarter increased by 8.4% to $877,809, up from $809,000 in the previous year. This rise was influenced by a 16.2% increase in manufacturing costs, which reached $237,000, and a 5.8% increase in engineering, selling, and administrative expenses, totaling $640,000. The company's income from operations before income taxes fell to $41,000, a decrease of 48.1% from $79,000 in the prior year, while net income attributable to LGL Group common stockholders showed a loss of $6,000 compared to a profit of $21,000 in the same quarter of 2024.

Operationally, the company reported a decrease in its order backlog, which fell to $295,000 as of March 31, 2025, down 12.2% from $336,000 at the end of 2024. The decline in backlog reflects adjustments for project cancellations and deferrals. The company maintained a stable cash position, with cash and cash equivalents totaling $41,925,000, slightly up from $41,585,000 at the end of the previous year. The current ratio decreased to 42.3 from 47.2, indicating a tighter liquidity position.

In terms of strategic developments, LGL Group continues to focus on its core business segments: Electronic Instruments and Merchant Investment. The Electronic Instruments segment, which includes products manufactured by its subsidiary Precise Time and Frequency, LLC, reported a significant increase in net sales. The Merchant Investment segment, however, experienced a decline in net investment income, which was impacted by lower yields. The company has not announced any new acquisitions or major organizational changes during this quarter.

Looking ahead, LGL Group's management expressed cautious optimism regarding future performance, emphasizing the importance of managing working capital efficiently and exploring potential investments. The company remains committed to its long-term growth objectives, including potential acquisitions and capital appreciation for shareholders. However, it acknowledged the ongoing challenges posed by macroeconomic conditions, including fluctuating interest rates and tariffs, which could impact manufacturing costs and overall profitability.