Optex Systems lands $6.5 million military contract

RICHARDSON, TX - Optex Systems Holdings, Inc. (NASDAQ:OPXS), a manufacturer specializing in precision optical sighting systems whose stock has surged nearly 98% over the past year, has secured a $6.5 million contract from DLA Land and Marine. According to InvestingPro analysis, the company currently appears overvalued despite its strong market performance. The deal, announced today, is an Indefinite Delivery Indefinite Quantity (IDIQ) agreement for the supply of Optically Improved Periscopes with an initial term of three years and an option to extend for two additional years.

Danny Schoening, CEO of Optex Systems, highlighted the company's ongoing commitment to equipping U.S. armored vehicles with advanced laser-protected periscopes that enhance real-time situational awareness while safeguarding against laser threats. "This three-year contract speaks to the decades-long relationship with the U.S. Government and our commitment to quality and reliability," said Schoening.

The new contract contributes to Optex's current backlog, which now exceeds $42 million, representing more than 128% of the company's trailing twelve-month revenue of $32.63 million. Optex, established in 1987 and based in Richardson, Texas, is an ISO 9001:2015 certified company. InvestingPro data reveals the company maintains excellent financial health with a strong current ratio of 3.72 and operates with moderate debt levels. It supplies optical sighting systems and assemblies mainly for the Department of Defense, including for military land vehicles like the Abrams and Bradley fighting vehicles, Light Armored and Armored Security Vehicles, and the Stryker (NYSE:SYK) family of vehicles.

Optex manufactures a variety of periscope configurations, rifle and surveillance sights, and night vision optical assemblies, delivering directly to military services as well as prime contractors.

The press release contains forward-looking statements regarding the company’s future events, including expectations about product and service development, financial performance, and market acceptance. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

This article is based on a press release statement and aims to provide an unbiased summary of the newsworthy facts regarding Optex Systems Holdings, Inc.’s recent contract award.

In other recent news, Optex Systems has secured several lucrative contracts, marking significant strides in its operations. The company recently landed a $2.1 million contract for the supply of laser-protected periscopes to two domestic armored vehicle manufacturers. This adds to Optex Systems' backlog, which now stands in excess of $45 million, with deliveries anticipated over the next 18 months.

In addition, Optex Systems has been awarded a $2.5 million contract to supply Laser Filter Units for the XM-157 NGWS Scope, increasing their backlog to over $47 million. Furthermore, the company secured a $3.8 million contract to deliver components for the Armored Multi-Purpose Vehicle (AMPV) to the U.S. Government, including the supply of laser-protected periscopes over the next 14 months.

These recent developments underscore Optex Systems' role as a key supplier within the defense industry. The company's ability to fulfill contractual obligations efficiently is crucial for its ongoing success in this highly regulated and competitive market. These contracts reflect Optex Systems' commitment to supporting military operations with advanced optical technologies.

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