Clearfield Reports Fourth Quarter and Full Year 2025 Results

Core Insights - Clearfield, Inc. reported a strong financial performance for fiscal year 2025, with net sales from continuing operations increasing by 20% to $150.1 million and gross profit margin improving significantly from 20.6% to 33.7% [3][10][11] - The company achieved a net income from continuing operations of $6.3 million, translating to earnings per share of $0.45, a substantial recovery from a net loss per share of $(0.58) in fiscal 2024 [4][12] - Clearfield anticipates continued growth in fiscal 2026, projecting revenue from continuing operations between $160 million and $170 million, and earnings per share in the range of $0.48 to $0.62 [3][13] Financial Performance - In Q4 2025, net sales from continuing operations reached $41.1 million, a 13% increase from $36.2 million in Q4 2024 [2][7] - Gross profit for Q4 2025 was $14.2 million, with a gross margin of 34.6%, up from 26.6% in the same quarter last year [2][8] - Operating expenses for Q4 2025 were $13.3 million, representing 32.3% of sales, a decrease from 33.4% in Q4 2024 [9][12] Strategic Developments - The company divested its European Nestor Cables business to focus on higher-return opportunities in North America, which aligns with its "Better Broadband and Beyond" strategy [5][6] - Clearfield's order backlog as of September 30, 2025, was $24.7 million, reflecting a decrease of 20% from the previous quarter but a 9% increase year-over-year [7] - The Board of Directors increased the share repurchase program authorization from $65 million to $85 million, indicating confidence in the company's market position [3][5] Outlook - For Q1 fiscal 2026, Clearfield expects net sales from continuing operations to be between $30 million and $33 million, with operating expenses remaining consistent with Q4 2025 [14] - The company does not foresee significant impacts from the results of discontinued operations on net income per share for the upcoming quarter [14] - Clearfield's management remains committed to disciplined growth and operational efficiency, despite potential pressures from external factors such as government funding delays [13][14]