Clearfield Reports Second Quarter Fiscal 2025 Results

Core Viewpoint - Clearfield, Inc. reported significant financial improvements in fiscal Q2 2025, including a return to profitability and strong revenue growth driven by customer demand across all segments [4][5][10]. Financial Performance - Net sales for Q2 2025 reached $47.2 million, a 28% increase from $36.9 million in Q2 2024 [2][7]. - Gross profit surged to $14.2 million, up 401% from $2.8 million year-over-year, resulting in a gross margin of 30.1%, compared to 7.7% in Q2 2024 [2][8]. - The company achieved net income of $1.3 million, or $0.09 per diluted share, compared to a net loss of $5.9 million, or ($0.40) per diluted share, in the same quarter last year [2][10]. Year-to-Date Performance - For the first half of fiscal 2025, net sales totaled $82.6 million, a 16% increase from $71.1 million in the same period of 2024 [3]. - Year-to-date gross profit was $22.4 million, reflecting a 197% increase from $7.5 million in 2024 [3]. - The company reported a reduced net loss of $0.6 million for the year-to-date period, significantly improved from a loss of $11.2 million in the prior year [3]. Operational Insights - The increase in gross margin was attributed to higher production volumes and reduced excess inventory reserve costs [6][8]. - The order backlog as of March 31, 2025, was $34.1 million, a 31% increase from $26.0 million at the end of 2024 [7]. Management Commentary - Management expressed confidence in capturing market share despite macroeconomic uncertainties, citing strong customer demand and effective execution [4][5]. - The company plans to maintain its fiscal 2025 net sales guidance in the range of $170 million to $185 million, anticipating Q3 net sales between $45 million and $50 million [5][11]. Shareholder Actions - Clearfield repurchased approximately $4.7 million in shares under its share repurchase program, with about $14 million remaining for future repurchases [10].