Omega Flex, Inc. reported its financial results for the second quarter and first half of 2025, revealing a modest increase in net sales but a decline in profitability compared to the previous year. For the three months ended June 30, 2025, the company generated net sales of $25.5 million, a 3.7% increase from $24.6 million in the same period of 2024. However, gross profit margins decreased slightly to 60.4% from 61.8%, resulting in an operating profit of $4.7 million, down 10.6% from $5.3 million in the prior year. For the first half of 2025, net sales totaled $48.9 million, a decrease of 2.0% from $49.8 million in the first half of 2024, with operating profit declining by 15.2% to $8.8 million.
The company's financial position showed a decrease in total assets, which fell to $102.8 million as of June 30, 2025, from $105.9 million at the end of 2024. Current assets also decreased, primarily due to a reduction in accounts receivable and cash balances. The company reported cash and cash equivalents of $50.7 million, down from $51.7 million at the end of 2024. Retained earnings increased to $73.7 million, reflecting net income for the period, despite the company declaring dividends totaling $6.9 million during the first half of 2025.
Operationally, Omega Flex continues to focus on its core business of manufacturing flexible metal hose and accessories, with significant contributions from its TracPipe® and MediTrac® product lines. The company has maintained its workforce, with no significant changes in employee headcount reported. However, engineering expenses surged by 37.2% in the second quarter, attributed to increased product development and certification costs. The company also noted a significant customer concentration, with one customer representing over 10% of accounts receivable and total net sales.
Looking ahead, Omega Flex expressed cautious optimism regarding its future performance, citing ongoing market challenges, including a decline in housing starts that has impacted sales volumes. The company believes its existing cash reserves and a $15 million line of credit will be sufficient to meet anticipated cash needs over the next twelve months. Management remains focused on strategic initiatives to enhance product offerings and expand market reach, particularly in the healthcare sector with its MediTrac® product line.
About Omega Flex, Inc.
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