Optex Systems Shares Slide as Orders and Backlog Shrink
The defense supplier faces weaker periscope demand and higher costs, while new awards and infrared work offer potential support.
Key takeaways
- Optex Systems shares fell 23.5% over three months, according to the article.
- New orders declined 19.1% and backlog fell 21.4% in the first nine months of fiscal 2026.
- Recent awards include contracts for deliveries through 2029.
- A $0.4 million infrared-windows award came from a new prime contractor.
Optex Systems Holdings shares lost 23.5% over three months, trailing the Zacks Aerospace sector, which fell 17.8%, and the S&P 500, which gained 1.6%. The company faces weaker periscope demand, declining orders and higher expenses.
As of 18:38 UTC on Oct. 5, OPXS traded at $10.58, up 1.2% from the previous close. The article said periscope revenue fell 16.5% in the first nine months of fiscal 2026.
New orders dropped 19.1% year over year to $19.5 million, while backlog declined 21.4% to $30.1 million. General and administrative expenses rose to $5.6 million from $3.6 million, and a pending Army vehicle program termination affects about $1.3 million of backlog.
The company has also secured awards that extend deliveries into future years. They include a $2.8 million XM157 laser-filter contract for 2027 deliveries and a $1.2 million Canadian vehicle support contract running through 2029.
A $0.4 million infrared-windows award marked its first contract from a new prime contractor. Optex said potential follow-on orders could reach $14 million annually beginning in the second quarter of 2027 if the initial program succeeds. The article cited a trailing EV-to-sales multiple of 1.67, below the industry average of 11.41.
This article was produced with the help of AI technology. Source: Yahoo Finance
