Optex Systems secures $2.1 million military contracts

Published 23/09/2024, 21:14
Optex Systems secures $2.1 million military contracts

RICHARDSON, TX - Optex Systems Holdings, Inc. (NASDAQ:OPXS), a manufacturer specializing in precision optical sighting systems, has recently secured contracts totaling $2.1 million for the supply of laser protected periscopes to two domestic armored vehicle manufacturers. The contracts are set to bolster the company's backlog, which now exceeds $45 million, with deliveries expected over the next 18 months.

Danny Schoening, CEO of Optex Systems, highlighted the importance of the periscopes in providing "real-time situational awareness while protecting [users] from harmful laser strikes." The company, founded in 1987 and ISO 9001:2015 certified, serves both the U.S. Department of Defense and commercial sectors, supplying a range of optical products for military land vehicles, including the Abrams and Bradley fighting vehicles, as well as the Stryker (NYSE:SYK) family of vehicles.

These contracts represent a continuation of Optex Systems' role as a key supplier in the defense industry, providing critical components for military applications. The announcement comes amidst a competitive landscape where timely delivery and technological innovation are crucial for maintaining and securing contracts with military and commercial entities.

The press release also contains forward-looking statements regarding the company's future expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. These include but are not limited to economic conditions, market demand, geopolitical unrest, and changes in government procurement policies.

Optex Systems' financial health and its ability to fulfill contractual obligations efficiently are key to its continued success in a highly regulated and competitive market. The company's recent contract wins are based on a press release statement and reflect its ongoing commitment to supporting military operations with advanced optical technologies.


In other recent news, Optex Systems Holdings, Inc., a leading manufacturer of precision optical sighting systems, has been awarded a $2.5 million contract to supply Laser Filter Units for the XM-157 NGWS Scope. Deliveries are scheduled from August 2024 through July 2025. This new contract adds to Optex's current backlog, which now surpasses $47 million.

In addition to this, Optex Systems has secured another contract worth $3.8 million 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 significant initiative by the U.S. Army to enhance troop transportation capabilities within the Armored Brigade Combat Team (ABCT).

These developments are part of a series of recent events for the company, demonstrating its continued commitment to providing advanced military scopes and enhancing U.S. military personnel's vision protection.


InvestingPro Insights


Optex Systems Holdings, Inc. (NASDAQ:OPXS) has demonstrated a robust financial performance, with real-time data showcasing a positive trajectory. The company's market capitalization stands at $52.32 million, reflecting investor confidence in its market position. A key metric underscoring Optex's financial health is its Price-to-Earnings (P/E) ratio, which is currently 12.28, indicating that investors are willing to pay $12.28 for every dollar of earnings, a figure that aligns with industry standards. Additionally, the company has shown impressive revenue growth of 34.17% in the last twelve months as of Q3 2024, highlighting its ability to increase sales and expand its market share in the competitive defense sector.

From an operational standpoint, Optex Systems operates with a moderate level of debt, which is a positive sign for stakeholders as it suggests the company is managing its finances prudently. InvestingPro Tips further reveal that Optex's liquid assets exceed its short-term obligations, providing a cushion for operational exigencies and potential investment opportunities. Moreover, the company has been profitable over the last twelve months, with a strong return over the last five years, indicating sustained performance and potential for continued growth.

For readers interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, including insights on cash flow, dividend policies, and asset returns. For instance, Optex Systems does not pay a dividend to shareholders, a strategy that might appeal to investors looking for companies that reinvest earnings back into the business for growth. With a total of seven InvestingPro Tips listed, including the ones mentioned, investors can gain a comprehensive understanding of Optex Systems' financial and operational status at InvestingPro.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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