Financial Performance - For the three months ended June 30, 2025, net sales increased to $25,525,000, a 3.7% increase from $24,620,000 in the same period of 2024[15] - Gross profit for the three months ended June 30, 2025, was $15,422,000, slightly up from $15,222,000 in 2024, resulting in a gross margin of 60.5%[15] - Operating profit decreased to $4,722,000 for the three months ended June 30, 2025, compared to $5,283,000 in 2024, reflecting a decline of 10.6%[15] - Net income attributable to Omega Flex, Inc. for the three months ended June 30, 2025, was $4,156,000, down from $4,496,000 in 2024, representing a decrease of 7.6%[15] - Net income for the six months ended June 30, 2025, was $7,623,000, compared to $8,674,000 for the same period in 2024, representing a decrease of approximately 12.1%[30] - The Company reported net sales of $48,855,000 for the first six months of 2025, a decrease of $981,000 or 2.0% compared to $49,836,000 in the same period of 2024[144] - Gross profit margins were 60.4% for the first six months of 2025, down from 60.8% in 2024[145] - Operating profit decreased by $1,569,000 or 15.2%, totaling $8,772,000 for the first six months of 2025 compared to $10,341,000 in 2024[150] Assets and Liabilities - Total assets as of June 30, 2025, were $102,783,000, a decrease from $105,891,000 as of December 31, 2024[13] - Total liabilities decreased to $18,819,000 as of June 30, 2025, from $22,710,000 at the end of 2024, indicating a reduction of 17.1%[13] - Cash and cash equivalents as of June 30, 2025, were $50,734,000, slightly down from $51,699,000 at the end of 2024[13] - The reserve for credit losses was $810,000 as of June 30, 2025, down from $866,000 as of December 31, 2024, indicating a decrease of approximately 6.5%[50] - The net present value of retirement payments associated with salary continuation agreements is $282,000 as of June 30, 2025, with $240,000 classified as Other Long Term Liabilities[85] Earnings and Dividends - Cash dividends declared per common share remained stable at $0.34 for both the three months ended June 30, 2025, and 2024[15] - Declared dividends for the six months ended June 30, 2025, were $6,864,000, compared to $6,763,000 in 2024, marking an increase of about 1.5%[30] - Basic and diluted earnings per common share for the three months ended June 30, 2025, were $0.41, down from $0.45 in 2024, a decrease of 8.9%[15] Operating Activities - Cash provided by operating activities for the six months ended June 30, 2025, was $7,013,000, slightly down from $7,107,000 in 2024, indicating a decrease of about 1.3%[30] - Cash provided by operating activities was $7,013,000 for the first six months of 2025, a decrease of $94,000 compared to $7,107,000 in 2024[162] Expenses - Engineering expenses increased by $366,000 or 37.2% to $1,350,000 in Q2 2025, primarily due to product development and certification costs[137] - General and administrative expenses rose by $185,000 or 2.4%, totaling $8,024,000 for the first six months of 2025, with an increase in staffing-related costs[147] - Selling expenses rose to $5,217,000 in Q2 2025, an increase of $343,000 or 7.0% compared to $4,874,000 in Q2 2024[135] - Selling expenses were $10,218,000 for the first six months of 2025, a slight decrease of $8,000 or 0.1% compared to $10,226,000 in 2024[146] Stock and Equity - The Equity Incentive Plan allows for the issuance of up to 818,458 shares, representing 7.5% of fully-diluted shares of common stock[56] - In January 2025, 420,000 shares of restricted stock were granted, representing 4% of the shares of common stock, with an eight-year cliff vesting schedule[57] - The Company granted 12,829 phantom stock units with a fair value of $32.35 per unit in February 2025, increasing total nonvested and unmatured units to 23,397 as of June 30, 2025[97] - Total unrecognized compensation costs related to the Phantom Stock Plan as of June 30, 2025, were $470,000, expected to be recognized through February 2028[105] Lease and Tax - The Company applies the requirements of FASB ASC Topic 842 for lease accounting, classifying all leases as operating leases as of June 30, 2025[61] - The Company recorded right-of-use assets of $4,813,000 and lease liabilities of $5,142,000 as of June 30, 2025[115] - Future minimum lease payments under non-cancelable leases total $5,710,000 as of June 30, 2025[117] - Income tax expense decreased by $297,000 or 10.8%, totaling $2,465,000 for the first six months of 2025 compared to $2,762,000 in 2024[153] Customer and Market - The company operates as a single segment focused on the manufacture and sale of flexible metal hose, with most sales concentrated in North America[33][46] - The Company has one significant customer that represented more than 10% of Accounts Receivable and total Net Sales as of June 30, 2025[74]

Core Insights - Omega Flex reported Q2 2025 revenue of $25.5 million, reflecting a 3.7% increase year-over-year, but net income decreased by 7.6% to $4,156,000, and earnings per share fell by 8.9% to $0.41 compared to Q2 2024, indicating mixed performance with ongoing profitability challenges [1][2][6]. Company Overview - Omega Flex specializes in flexible metal hoses and piping systems used in construction, medical, and industrial markets, with key product lines including TracPipe, CounterStrike, MediTrac, and DoubleTrac [3][4]. - The company holds a market-leading position in flexible metal piping, supported by a proprietary rotary manufacturing process that allows for cost-effective production across diverse applications [4]. Quarterly Performance - The company achieved a GAAP revenue growth of 3.7%, a recovery from a 2.0% decline in year-to-date figures, with residential construction, particularly housing starts, identified as a significant sales driver [5]. - Despite revenue growth, net income fell by 7.6% year-over-year, attributed to lower sales unit volumes in key categories, with no mention of price increases or margin expansion [6][8]. Financial Metrics - Key financial metrics for Q2 2025 include: - Revenue: $25.5 million (up from $24.6 million in Q2 2024) - Net Income: $4,156,000 (down from $4.5 million in Q2 2024) - Earnings Per Share: $0.41 (down from $0.45 in Q2 2024) [2]. Future Outlook - Omega Flex did not provide guidance for the next quarter or the remainder of fiscal 2025, lacking projections for sales, earnings, or new initiatives [9][10]. - Investors are advised to monitor future sales trends, particularly in residential construction, for indications of demand recovery or deterioration [10].

Core Insights - Omega Flex, Inc. reported a decrease in net sales for the first six months of 2025, totaling $48.855 million, down 2.0% from $49.836 million in the same period of 2024 [1][2] - Net income for the first six months of 2025 was $7.724 million, reflecting an 11.4% decrease from $8.715 million in the first half of 2024 [2] - The decline in sales and income is attributed to lower sales unit volumes, influenced by a decrease in housing starts in the overall market [2] Financial Performance - For the three months ended June 30, 2025, net sales increased by 3.7% compared to the second quarter of 2024 [1] - Earnings per share for the first six months of 2025 were $0.77, down from $0.86 in the same period of 2024 [1] - The weighted average shares remained constant at 10,094,322 for both periods [1] Market Conditions - The overall market conditions are described as suppressed, primarily due to a decline in housing starts, which has negatively impacted sales unit volumes [2]

Financial Results - Omega Flex, Inc. reported its financial results for the six months and three months ended June 30, 2025[3] - The earnings release was issued on July 30, 2025, detailing the company's performance[3] - The report is not deemed "filed" under the Securities Exchange Act of 1934, indicating it is for informational purposes only[4] - The press release is attached as Exhibit 99.1, providing further details on financial performance[5] Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2] - The report was signed by Dean W. Rivest, the Chief Executive Officer, on July 30, 2025[9] Product and Market Activity - The report does not indicate any new product launches or technological advancements during this period[3] - There is no mention of market expansion or acquisitions in the current report[3] - The company has not identified any emerging growth company status in this filing[2] - No specific financial metrics or performance indicators were disclosed in the provided content[3]

Group 1 - The Board of Directors of Omega Flex, Inc. declared a regular quarterly dividend of $0.34 per share, payable on July 10, 2025, to shareholders of record on June 30, 2025 [1] - Future regular quarterly dividends will be determined based on the Company's cash needs, operational results, financial condition, capital expenditure plans, potential acquisitions, and other relevant factors [1] Group 2 - The press release contains forward-looking statements that reflect Omega Flex's current expectations regarding future results and events [2] - These forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied [2]

Core Viewpoint - Omega Flex, Inc. has experienced a decline in both stock performance and financial results for the first quarter of 2025, primarily due to a slowdown in the housing market impacting demand for its products [1][2][4]. Financial Performance - Earnings per share for the first quarter of 2025 were reported at 35 cents, down from 42 cents in the same quarter of the previous year [2]. - Revenues decreased to $23.3 million, reflecting a 7.5% decline from $25.2 million year-over-year [2]. - Net income fell to $3.6 million, marking a 15.4% year-over-year decline from $4.2 million [2]. Market Conditions - The declines in revenue and net income were attributed to reduced unit volumes, linked to a broader market slowdown, particularly a downturn in housing starts [3][5]. - The housing sector, a key market for Omega Flex, is under pressure, potentially due to elevated interest rates or a pullback in construction activity [5]. Management Insights - CEO Dean W. Rivest indicated that the subdued market environment significantly affected the first-quarter results, specifically citing decreased housing starts as a factor for lower sales volumes [4]. - Management did not provide forward-looking guidance but suggested that the performance shortfall is due to macroeconomic conditions rather than internal execution issues [4].

Financial Performance - Net sales for Q1 2025 were $23,330,000, a decrease of 7.5% compared to $25,216,000 in Q1 2024[17] - Gross profit for Q1 2025 was $14,072,000, down 6.8% from $15,099,000 in Q1 2024[17] - Operating profit decreased to $4,050,000 in Q1 2025, a decline of 20% from $5,058,000 in Q1 2024[17] - Net income attributable to Omega Flex, Inc. for Q1 2025 was $3,568,000, a decrease of 15.4% compared to $4,219,000 in Q1 2024[17] - Basic and diluted earnings per common share for Q1 2025 were $0.35, down from $0.42 in Q1 2024[17] - Comprehensive income for Q1 2025 was $3,574,000, compared to $4,204,000 in Q1 2024, reflecting a decrease of 14.9%[18] - The Company's net sales for Q1 2025 were $23,330,000, a decrease of $1,886,000 or 7.5% compared to Q1 2024's $25,216,000, primarily due to lower sales unit volumes and a decline in housing starts[128] - Gross profit margin improved to 60.3% in Q1 2025 from 59.9% in Q1 2024, with gross profit of $14,072,000 compared to $15,099,000 in the prior year[129] - Operating profit decreased by $1,008,000 or 19.9%, totaling $4,050,000 in Q1 2025 compared to $5,058,000 in Q1 2024[134] - Engineering expenses increased by $199,000 or 21.4% to $1,130,000 in Q1 2025, representing 4.8% of sales, up from 3.7% in Q1 2024[133] - Interest income for Q1 2025 was $511,000, slightly down from $546,000 in Q1 2024[134] - Selling expenses decreased by $351,000 or 6.6% to $5,001,000 in Q1 2025, representing 21.4% of net sales, up from 21.2% in Q1 2024[130] Assets and Liabilities - Total current assets decreased to $80,520,000 as of March 31, 2025, from $83,622,000 as of December 31, 2024[14] - Total liabilities decreased to $19,479,000 as of March 31, 2025, from $22,710,000 as of December 31, 2024[14] - Cash and cash equivalents at the end of Q1 2025 were $49,226,000, down from $51,699,000 at the end of Q4 2024[14] - The reserve for credit losses was $786,000 as of March 31, 2025, down from $866,000 as of December 31, 2024[46] - As of March 31, 2025, the Company's net inventories amounted to $15,177,000, an increase from $14,559,000 as of December 31, 2024, reflecting a growth of approximately 4.24%[75] - The Company maintains a revolving credit facility with a maximum amount of $15,000,000, with no outstanding borrowings as of March 31, 2025, indicating strong liquidity[78][79] - The Company reported a net present value of retirement payments associated with salary continuation agreements of $291,000 as of March 31, 2025, down from $302,000 as of December 31, 2024[81] - The Company has an unused facility fee of 10 basis points on the average unused balance of the revolving credit facility, which reflects prudent financial management[78] Dividends and Stock - Dividends declared per common share increased to $0.34 in Q1 2025 from $0.33 in Q1 2024[17] - The Company paid dividends totaling $3,432,000 in Q1 2025, compared to $3,332,000 in Q1 2024, reflecting a consistent dividend policy[148] - The Company declared a dividend of $0.34 per share on March 25, 2025, resulting in a total payment of $3,432,000[113] - The Company granted 12,829 phantom stock units with a fair value of $32.35 per unit in February 2025[93] - Total unrecognized compensation costs related to phantom stock units as of March 31, 2025, were $568,000, expected to be recognized through February 2028[100] - The Company had 19,232 nonvested and unmatured phantom stock units outstanding as of March 31, 2025[100] - The fair value of restricted stock awards granted on January 2, 2025, was $0.27 per share, totaling $113,400[104] Operational Insights - The Company manufactures flexible metal hose at facilities in Exton, Pennsylvania, Houston, Texas, and Banbury, Oxfordshire, UK[30] - The Company applies the five-step approach of ASC Topic 606 for revenue recognition, ensuring revenue reflects the transfer of goods or services[33] - The Company considers all highly liquid investments with an original maturity of 90 days or less as cash equivalents[43] - The Company has not experienced any losses related to cash balances and believes its credit risk to be minimal[43] - The Company does not offer a warranty as a separate component, and warranties are included with each purchase[39] - The Company uses the first-in, first-out (FIFO) method for inventory valuation[47] - The Company performed an annual impairment test for goodwill as of December 31, 2024, which did not indicate any impairment[49] - The Company is subject to potential claims related to its products, which may result in increased litigation costs, although it believes these claims lack legal merit[85] - The Company has recognized foreign currency translation adjustments as the sole component of other comprehensive income for the three months ended March 31, 2025[69] - The Company has an estimated maximum exposure for all current open claims as of March 31, 2025, not exceeding approximately $3,661,000[86] Lease Obligations - The Company recorded right-of-use assets of $4,838,000 and a lease liability of $5,169,000 as of March 31, 2025[110] - Rent expense for operating leases was $233,000 for the three months ended March 31, 2025, compared to $194,000 for the same period in 2024, reflecting a 20.1% increase[111] - Future minimum lease payments under non-cancelable leases as of March 31, 2025, total $5,780,000[112] - The Company has several lease obligations, including a facility in Banbury, England, which supports its manufacturing and distribution functions[84] Internal Controls - The management evaluated the effectiveness of disclosure controls and procedures, concluding they were effective at a reasonable assurance level as of the end of the reporting period[157] - There were no changes in internal control over financial reporting during the most recent quarter that materially affected internal control[159]

Core Viewpoint - Omega Flex, Inc. reported a decline in both net sales and net income for the first quarter of 2025 compared to the same period in 2024, primarily due to lower sales unit volumes and a decrease in housing starts [2]. Financial Performance - Net sales for the first quarter of 2025 were $23,330,000, down from $25,216,000 in 2024, representing a decrease of $1,886,000 or 7.5% [2]. - Net income attributable to Omega Flex, Inc. for the first quarter of 2025 was $3,568,000, compared to $4,219,000 in 2024, a decrease of $651,000 or 15.4% [2]. - Earnings per share (basic and diluted) decreased from $0.42 in 2024 to $0.35 in 2025 [2]. Market Conditions - The overall market for Omega Flex, Inc. continued to be suppressed, influenced by a decline in housing starts, which contributed to the lower sales unit volumes [2].

Financial Performance - Omega Flex, Inc. reported its results for the three months ended March 31, 2025[3]. - The earnings release was issued on April 30, 2025, detailing the company's financial performance[3]. - The financial results will likely influence future market strategies and investor decisions[3]. Regulatory Compliance - The report is not deemed "filed" under the Securities Exchange Act of 1934, ensuring it is treated as "furnished" information[4]. - The report is part of the company's compliance with the Exchange Act requirements[7]. Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2]. - The company has not indicated any changes in its status as an emerging growth company[2]. Document Details - The press release is attached as Exhibit 99.1, providing further details on financial results[5]. - The report includes a cover page interactive data file embedded within the Inline XBRL document[5]. - The CEO, Dean W. Rivest, signed the report, indicating executive approval of the financial disclosures[9].

Group 1 - The Board of Directors of Omega Flex, Inc. declared a regular quarterly dividend of $0.34 per share, payable on April 22, 2025, to shareholders of record on April 10, 2025 [1] - Future regular quarterly dividends will be determined based on the Company's cash needs, results of operations, financial condition, capital expenditure plans, potential acquisitions, and other relevant factors [1]