Optex Systems Stock Declines Despite Y/Y Earnings Growth in 2024

Core Viewpoint - Optex Systems Holdings, Inc. reported strong financial performance for the fiscal year ended September 29, 2024, with significant revenue and profit growth, despite a decline in stock price. Financial Performance - Total revenues increased by 32.5% to $34 million from$25.7 million in fiscal 2023, driven by higher demand for military products [2] - Operating income rose by 73% to $4.8 million, with adjusted EBITDA increasing by 69.7$5.7 million [3] - Earnings per share (EPS) increased by 61.8% to 55 cents from 34 cents in fiscal 2023 [6] - Gross profit improved by 44% year over year to $9.5 million, with gross margins increasing by 220 basis points to 28$44.2 million, a 5.7% increase from $41.8 million at the beginning of the fiscal year, with new orders booked at$36.4 million, a 5.2% rise compared to $34.6 million in fiscal 2023 [8] - CEO Danny Schoening highlighted the company's ability to secure multi-year contracts for key products, contributing to operational efficiencies [5] Operational Efficiency - Revenue growth was primarily attributed to strong demand for military optical products, which offset reduced orders for optical assemblies [9] - The Applied Optics Center segment's margin expanded from 29.3$1 million in cash and no outstanding balance on its $3 million credit facility, with working capital improving to$15.1 million from $13.5 million [10]