Optex Systems secures $2.1 million in military contracts By Investing.com

RICHARDSON, TX – Optex Systems Holdings, Inc. (NASDAQ:OPXS), a manufacturer specializing in precision optical targeting systems, recently received orders totaling $2.1 million to supply laser-protected periscopes to two domestic tank manufacturers. These orders strengthen the company’s order backlog, which now exceeds $45 million, with deliveries scheduled over the next 18 months.

Danny Schoening, CEO of Optex Systems, emphasized the importance of the periscopes: “They provide real-time situational awareness while protecting users from harmful laser strikes.” Founded in 1987 and certified to ISO 9001:2015, the company believes in both the U.S. Department of Defense and the commercial sector with a range of optical products for military land vehicles, including the Abrams and Bradley fighting vehicles and the Stryker family of vehicles.

These orders underscore Optex Systems’ position as a key supplier to the defense industry for critical components for military applications. The announcement comes in a highly competitive market environment where on-time delivery and technological innovation are critical to securing contracts with military and commercial entities.

This press release also contains forward-looking statements regarding the Company’s expectations, risks and uncertainties that could cause actual results to differ materially from those projected. Risk factors include, but are not limited to, economic conditions, market demands, geopolitical unrest and changes in government procurement policies.

Optex Systems’ financial stability and ability to efficiently fulfill contractual obligations are critical to its continued success in this highly regulated and competitive market. The recent contract wins reflect the company’s ongoing commitment to supporting military operations with advanced optical technologies.

In other recent news, Optex Systems Holdings, Inc. has been awarded a $2.5 million contract to supply laser filter units for the XM-157 NGWS riflescope. Deliveries are scheduled for August 2024 to July 2025. This new contract brings Optex’s current backlog to over $47 million.

Additionally, Optex Systems secured a $3.8 million contract to supply components for the Armored Multi-Purpose Vehicle (AMPV) to the U.S. government. The contract includes the delivery of laser-protected periscopes over the next 14 months. The AMPV project is a major U.S. Army initiative to improve troop transport capabilities within the Armored Brigade Combat Team (ABCT).

These developments are part of a series of recent successes for the company and underscore its continued commitment to providing advanced military targeting systems and improving visual protection for U.S. military personnel.

InvestingPro Insights

Optex Systems Holdings, Inc. (NASDAQ:OPXS) is showing robust financial performance, as evidenced by recent data. The company’s market capitalization is $52.32 million, reflecting investors’ confidence in its market position. A key metric that underscores Optex’s financial health is its price-to-earnings (P/E) ratio, currently at 12.28. This means that investors are willing to pay $12.28 for every dollar of earnings – a figure that is in line with industry standards. Also notable is the 34.17% growth over the trailing twelve months to Q3 2024, which highlights the company’s revenue ability to build its market share in the competitive defense sector.

From an operational perspective, Optex Systems operates with moderate levels of debt, indicating prudent financial management. InvestingPro Tips also shows that Optex’s cash exceeds its short-term obligations. This provides a buffer for operational needs and potential investment opportunities. The company has been profitable over the last twelve months and has generated strong returns over the last five years, indicating sustainable performance and further growth potential.

For a more in-depth analysis, additional InvestingPro Tips are available on the platform, providing insights into cash flow, dividend policy and asset returns. It is worth noting that Optex Systems does not pay dividends to shareholders – a strategy that may appeal to investors looking for companies that reinvest profits to drive growth. With a total of seven InvestingPro Tips listed, investors can gain a comprehensive understanding of Optex Systems’ financial and operational position on InvestingPro.

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