Optex Systems Holdings, Inc. reported its financial results for the six months ending March 29, 2026, revealing a consolidated revenue of $18.8 million, a slight decrease from $18.9 million in the same period last year. The company’s net income for the period was $1.6 million, down from $2.6 million in the prior year, resulting in a basic earnings per share of $0.23 compared to $0.38. The decline in profitability is attributed to increased general and administrative expenses, which rose to $3.7 million from $2.3 million year-over-year.
In terms of operational performance, Optex Systems experienced a decrease in revenue during the second quarter, with revenue of $9.6 million compared to $10.7 million in the same quarter of the previous year. The cost of sales also decreased to $6.2 million from $7.4 million, leading to a gross profit of $3.4 million, slightly up from $3.4 million in the prior year. The company’s total assets increased to $30.9 million from $30.1 million, primarily driven by a rise in accounts receivable and inventory.
Strategically, Optex Systems has maintained its focus on the defense sector, with 67% of its revenue derived from U.S. prime military contractors and 26% from military sales to the U.S. government. The company operates two segments: Optex Richardson and Applied Optics Center, with the former contributing 62% of total revenue. The company has also seen a slight increase in its employee headcount, now totaling 134 full-time equivalent employees, up from 130 in the previous period.
The filing indicates that Optex Systems is navigating challenges related to inflationary pressures on materials and labor, which have impacted contract profitability. The company has recorded contract loss reserves of $56,000, reflecting ongoing concerns about cost overruns on certain contracts. Despite these challenges, Optex Systems remains committed to its strategic direction, focusing on enhancing operational efficiencies and maintaining strong relationships with its military and commercial customers.
Looking ahead, Optex Systems Holdings anticipates continued demand for its optical sighting systems and assemblies, particularly as defense spending remains a priority for the U.S. government. The company is focused on leveraging its existing capabilities while exploring opportunities for growth in both domestic and international markets. The management remains optimistic about future performance, despite the current economic pressures, and is committed to improving its operational metrics in the coming quarters.
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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