Core Insights - Crude Value Insights provides an investment service and community focused on the oil and natural gas sector, emphasizing cash flow generation and growth potential [1] Group 1 - The service offers subscribers access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [1]

Core Insights - The article emphasizes the importance of a diversified investment portfolio that includes both dividend and growth stocks, particularly focusing on European small-cap companies [1] Group 1: Investment Strategy - The investment approach is centered on a 5-7 year horizon, targeting high-quality small-cap stocks that offer potential for capital gains and dividend income [1] - The investment group, European Small Cap Ideas, provides exclusive research on unique investment opportunities in Europe, which are not readily available elsewhere [1] Group 2: Portfolio Features - The group manages two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, which are designed to cater to different investment needs [1] - Weekly updates and educational content are provided to enhance understanding of European investment opportunities, along with an active chat room for discussions on portfolio developments [1]

Dividend Announcement - Omega Flex, Inc. declared a regular quarterly dividend of $0.34 per share, payable on January 7, 2026, to shareholders of record on December 19, 2025 [1] Future Dividend Considerations - The Board of Directors will review the cash needs of the Company and consider factors such as results of operations, financial condition, capital expenditure plans, and possible acquisitions when determining future quarterly dividends [1]

Financial Performance - For the three months ended September 30, 2025, net sales were $24,234,000, a decrease of 2.6% compared to $24,880,000 for the same period in 2024[17] - Gross profit for the three months ended September 30, 2025, was $14,581,000, down from $15,350,000 in 2024, reflecting a gross margin of 60.3%[17] - Operating profit for the three months ended September 30, 2025, was $4,185,000, a decline of 23.4% from $5,468,000 in the prior year[17] - Net income attributable to Omega Flex, Inc. for the three months ended September 30, 2025, was $3,688,000, compared to $4,617,000 in 2024, representing a decrease of 20.1%[17] - Comprehensive income attributable to Omega Flex, Inc. for the three months ended September 30, 2025, was $3,632,000, compared to $4,767,000 in 2024, indicating a decline in overall financial performance[19] - The Company reported net sales of $73,089,000 for the nine months ended September 30, 2025, a decrease of $1,627,000 or 2.2% compared to $74,716,000 for the same period in 2024[144] - Gross profit margins decreased to 60.3% for the nine months ended September 30, 2025, down from 61.1% in 2024, primarily due to increased staffing costs and tariffs[145] - Operating profits were $12,957,000 for the nine months ended September 30, 2025, a decrease of $2,852,000 or 18.0% compared to $15,809,000 in 2024[150] Assets and Liabilities - Total current assets as of September 30, 2025, were $81,621,000, a slight decrease from $83,622,000 as of December 31, 2024[15] - Total liabilities decreased to $19,740,000 as of September 30, 2025, from $22,710,000 at the end of 2024, indicating improved financial stability[15] - Cash and cash equivalents were $49,368,000 as of September 30, 2025, down from $51,699,000 at the end of 2024[15] - Retained earnings increased to $73,995,000 as of September 30, 2025, from $72,880,000 at the end of 2024, reflecting ongoing profitability[15] - The cash and cash equivalents at the end of the period were $49,368,000, down from $51,699,000 at the beginning of the period, indicating a decrease of about 4.3%[30] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $9,668,000, compared to $11,097,000 for the same period in 2024, representing a decline of approximately 12.9%[30] - The reserve for credit losses was $800,000 as of September 30, 2025, down from $866,000 as of December 31, 2024, indicating a reduction of approximately 7.6%[49] Expenses - Engineering expenses increased by $263,000 or 24.9% to $1,321,000 for the third quarter of 2025, attributed to product development and certification costs[138] - General and administrative expenses rose by $234,000 or 6.1% to $4,082,000 for the third quarter of 2025, with an increase in staffing-related costs[137] - Selling expenses for the third quarter of 2025 were $4,993,000, an increase of $17,000 or 0.3% compared to $4,976,000 in the same quarter of 2024[136] - General and administrative expenses rose by $419,000 or 3.6% to $12,106,000 for the nine months ended September 30, 2025, increasing as a percentage of sales to 16.6%[147] Dividends - The company declared cash dividends of $0.34 per common share for both the three months ended September 30, 2025, and 2024[17] - Dividends paid increased to $10,296,000 in 2025 from $10,095,000 in 2024, marking an increase of about 2%[30] - The Company has declared and paid regular quarterly dividends totaling $10,296,000 during 2025[131] Inventory - As of September 30, 2025, inventories net of reserves were $14,310,000, a decrease from $14,559,000 as of December 31, 2024[78] - Finished goods inventory increased to $7,163,000 as of September 30, 2025, compared to $6,676,000 as of December 31, 2024[78] - Raw materials inventory decreased to $7,147,000 as of September 30, 2025, from $7,883,000 as of December 31, 2024[78] - The company applies the first-in, first-out (FIFO) method for inventory valuation[50] Other Information - The company operates manufacturing facilities in Exton, Pennsylvania, Houston, Texas, and Banbury, Oxfordshire, UK, serving North America and certain European markets[33] - The company applies ASC Topic 606 for revenue recognition, ensuring revenue reflects the transfer of goods or services to customers[36] - The Company has an unsecured revolving credit facility with a maximum amount of $15,000,000, expiring on September 1, 2028, with an interest rate range of 5.06% based on financial ratios[82] - As of September 30, 2025, the Company had no outstanding borrowings and was in compliance with all debt covenants[83] - The Company recorded compensation expense of $112,000 for the nine months ended September 30, 2025, compared to $60,000 for the same period in 2024[104] - The Company granted 420,000 shares of restricted stock under the 2025 Equity Incentive Plan, representing 4% of the shares of FTI Common Stock[109]

Core Insights - Omega Flex, Inc. reported a decrease in net sales and net income for the first nine months of 2025 compared to the same period in 2024, primarily due to challenges in the residential housing market [1][2]. Financial Performance - Net sales for the first nine months of 2025 were $73,089,000, down from $74,716,000 in 2024, representing a decrease of $1,627,000 or 2.2% [1]. - For the third quarter of 2025, net sales were $24,234,000, which is 2.6% lower than the same quarter in 2024 [1]. - Net income for the first nine months of 2025 was $11,412,000, a decrease of $1,920,000 or 14.4% from $13,332,000 in 2024 [2]. - The net income for the third quarter of 2025 was $3,688,000, which is 20.1% lower than the same period in 2024 [2]. Market Challenges - The decline in sales and income is attributed to lower sales unit volumes, influenced by higher construction costs and sales prices in the residential housing market [2].

Financial Results - Omega Flex, Inc. reported its financial results for the nine months and three months ended September 30, 2025[3]. - The earnings release was issued on October 29, 2025, detailing the company's performance[3]. - The press release is attached as Exhibit 99.1, providing detailed financial data[5]. Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, ensuring compliance with regulatory requirements[4]. - The report does not incorporate any information into filings under the Securities Act of 1933[4]. - The company has not elected to use the extended transition period for new financial accounting standards[2]. Company Information - The company is listed on the NASDAQ Global Market under the trading symbol OFLX[2]. - The Chief Executive Officer, Dean W. Rivest, signed the report, affirming its accuracy[9]. - The company operates from its principal executive offices located in Exton, Pennsylvania[1]. Report Classification - The report is categorized as a Current Report under Form 8-K, indicating significant events or changes[2].

Group 1 - The Board of Directors of Omega Flex, Inc. declared a regular quarterly dividend of $0.34 per share [1] - The dividend is payable on October 8, 2025, to shareholders of record on September 25, 2025 [1] - Future dividends will be determined based on the Company's cash needs, operational results, financial condition, capital expenditure plans, and potential acquisitions [1]

Core Insights - Omega Flex, Inc. (OFLX) shares have decreased 4.5% since the earnings report for Q2 2025, contrasting with a 0.6% decline in the S&P 500 index during the same period [1] - The company reported earnings per share (EPS) of 41 cents, down from 45 cents a year ago [1] Financial Performance - Net sales for Q2 2025 were $25.5 million, a 3.7% increase from $24.6 million in the same quarter last year, driven by higher sales volume despite market softness [2] - Net income attributable to Omega Flex was $4.2 million, down 7.6% from $4.5 million in the prior-year quarter [2] Profitability Metrics - Gross profit increased to $15.4 million from $15.2 million, but gross margin narrowed to 60.4% from 61.8% year-over-year [3] - Operating profit declined 10.6% year-over-year to $4.7 million, reflecting cost pressures across various functional areas [3] Expense Analysis - Engineering expenses surged 37.2% to $1.4 million due to increased product development and certification costs [4] - Selling expenses rose 7% to $5.2 million, driven by higher advertising, travel, and commissions [4] - General and administrative expenses increased 1.3% to $4.1 million, with stock-based compensation and staffing costs partially offset by lower director-related expenses [4] - Overall operating margin fell to 18.5% from 21.5% in the same quarter last year [4] Management Commentary - Management acknowledged headwinds from a soft housing market, which contributed to lower unit volumes in the first half of 2025, particularly citing a decline in housing starts [5] - The company emphasized a strong cash position with $50.7 million in cash and equivalents and no outstanding debt at the end of the quarter [5] Product Performance - The flagship TracPipe and CounterStrike flexible gas piping systems performed robustly, with growth potential noted for the MediTrac corrugated medical tubing line [6] Revenue Influencers - The modest revenue increase was insufficient to offset higher expenses in engineering, marketing, and administrative functions [7] - Foreign currency fluctuations positively impacted performance, contributing $0.2 million in other income compared to a $0.03 million loss a year earlier [7] - Interest income declined from $0.6 million to $0.5 million year-over-year due to lower interest rates [7] Tax and Equity Developments - Tax expense decreased 3.3% to $1.3 million in line with lower pre-tax income [8] - The company granted 420,000 shares of restricted stock under the 2025 Equity Incentive Plan, aligning management incentives with long-term performance objectives [9] Dividend Information - Omega Flex continued regular dividend payments, declaring $0.34 per share in June, consistent with prior quarters, totaling $6.9 million in dividends paid for the first half of 2025 [10]

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].