Omnitek Engineering Corp. Reports 56% Revenue Increase and Net Income Turnaround in Latest Quarter

Omnitek Engineering Corp. reported significant financial improvements in its latest quarterly filing, with revenues reaching $605,407 for the three months ended June 30, 2025, compared to $266,971 for the same period in 2024, marking a 56% increase. For the six-month period, revenues surged to $965,153, up 92% from $504,047 in the prior year. The company's gross margin for the second quarter was 37%, slightly down from 42% in the previous year, while the gross margin for the six-month period was 38%, compared to 39% in 2024. Omnitek's net income for the second quarter was $125,853, a turnaround from a net loss of $108,356 in the same quarter last year.

The company experienced a notable increase in its cost of goods sold, which rose to $383,656 for the second quarter, up from $156,170 in 2024. Operating expenses decreased marginally to $167,855 from $175,546 year-over-year. General and administrative expenses also saw a slight reduction, totaling $149,895 compared to $156,953 in the previous year. The overall financial performance reflects a strategic focus on enhancing operational efficiency and product offerings.

Omnitek's operational metrics indicate a shift in customer engagement, with international sales significantly contributing to revenue growth. For the three months ended June 30, 2025, international revenues accounted for $543,228, compared to $161,478 in the prior year. The company’s inventory levels increased to $325,861 from $267,616, indicating a proactive approach to meet rising demand. However, the company reported negative working capital of $1,209,105, with current liabilities totaling $1,921,481 against current assets of $712,376.

The company continues to navigate challenges related to liquidity, with a cash balance of $32,636 as of June 30, 2025, down from $104,445 at the end of 2024. Omnitek's management expressed confidence in its operational plan and projected sales for 2025, indicating that available funds should suffice to support operations for the next twelve months. However, uncertainties regarding future profitability and the ability to raise additional capital remain, which could impact the company's long-term viability.

Looking ahead, Omnitek Engineering Corp. aims to leverage its proprietary technology in alternative fuel solutions to capture a larger market share. The company is focused on expanding its product lines and enhancing customer relationships, particularly in international markets. Despite the challenges, management remains optimistic about the potential for growth and the successful execution of its strategic initiatives.