Optex Systems Holdings, Inc. reported a significant increase in financial performance for the fiscal year ending September 28, 2025, with total revenues reaching $41.3 million, a 21.6% increase from $33.9 million in the previous fiscal year. The company’s net income applicable to common shareholders also rose to $5.1 million, compared to $3.8 million in the prior year. This growth was primarily driven by a 30.8% increase in revenue from the Optex Richardson segment, which accounted for $23.8 million, and an 11.1% increase in revenue from the Applied Optics Center segment, totaling $17.5 million.
The company experienced notable changes in its operational landscape, including a decrease in backlog from $44.2 million to $39.1 million, reflecting a 11.5% decline. This reduction was attributed to lower customer demand for periscopes, which saw a 42.2% drop in orders. However, the Applied Optics Center segment saw a 15.5% increase in orders, indicating a shift in demand towards laser filters and other products. The overall new orders booked during the fiscal year were $36.2 million, slightly down from $36.4 million in the previous year.
Strategically, Optex Systems made significant organizational changes, including the appointment of Chad George as the new Chief Executive Officer, effective December 20, 2025, following the resignation of Danny Schoening. George, who has been with the company since August 2025 as President, brings over 20 years of experience in the defense sector. The company also expanded its board from four to five members to accommodate this leadership change. Additionally, Optex Systems has been actively pursuing new contracts, including a recent $2.3 million contract for optical sub-assemblies, with deliveries scheduled from April to December 2026.
Operationally, the company reported an increase in its workforce, with 132 full-time equivalent employees as of September 28, 2025. This increase in headcount is part of the company’s strategy to enhance production capabilities, particularly in response to increased demand for periscopes, which saw a production increase of 56% over the previous year. The company also noted improvements in supplier delivery performance and invested in additional machinery to alleviate production bottlenecks.
Looking ahead, Optex Systems anticipates continued growth driven by increased military spending, with the U.S. Department of Defense projected to spend $961.7 billion in fiscal year 2026, an 11.6% increase from the previous year. However, the company remains cautious about potential impacts from government budget delays and geopolitical uncertainties that could affect future revenues. The management is focused on maintaining operational efficiency and exploring new market opportunities, including foreign military sales and commercial applications for its products.
About Optex Systems Holdings Inc
Optex Systems Holdings designs and manufactures optical sighting systems, periscopes, and optical assemblies primarily for U.S. military ground vehicles and defense applications. Its products support armored vehicles, night vision, and surveillance systems for domestic and international military markets. The company emphasizes high-quality, reliable, and mission-critical optical solutions, serving defense prime contractors, government agencies, and foreign militaries with a focus on innovation, compliance, and strategic customer relationships.
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