Optex Systems Q1 revenue up 11.6%, gross margin falls

Optex Systems Holdings

11/02/2026 14:09

Overview

Optical sighting systems maker's Q1 revenue rose 11.6% yr/yr

Gross margin fell to 22.9% due to increased gold costs

Company incurred $0.3 mln in non-recurring costs for CEO transition and other executive changes

Outlook

Optex expects higher revenues and gross profits in fiscal year 2026

Optex does not expect gross profit to drop over rest of 2026

Company anticipates increased demand due to higher defense spending

Optex plans to invest in R&D to expand product lines

Result Drivers

PERISCOPE DEMAND - Increased demand for periscopes and XM30 program development drove revenue growth, per CEO Chad George

GOLD COSTS - Margins compressed due to increased gold costs on Abrams day window program, impacting gross profit

CEO TRANSITION COSTS - Non-recurring costs of $0.3 mln incurred for CEO transition and retirement of senior employees

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$9.15 mln
Q1 Net Income
$242,000
Q1 Adjusted EBITDA
$728,000
Q1 Gross Margin
22.90%
Q1 Gross Profit
$2.10 mln
Q1 Operating Income
$149,000


Press Release: ID:nACSpmYfja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)