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Omega Flex, Inc. (OFLX)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 net sales declined to $23.33M (−7.5% YoY) and net income to $3.57M (−15.4% YoY); EPS was $0.35 .
  • Management attributed the softness to lower unit volumes amid suppressed market conditions, notably a decline in housing starts .
  • Sequentially, revenue fell from $26.97M in Q4 2024 to $23.33M in Q1 2025 and EPS decreased from $0.46 to $0.35 .
  • No formal guidance was issued; dividend was maintained at $0.34 per share for Q1 2025, signaling capital-return consistency despite macro headwinds .
  • No earnings call transcript could be located via available document sources; the company’s communication for the quarter is limited to the 8‑K and press release .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin remained around 60%, indicating resilient pricing and cost control amid volume pressure.
    • Dividend maintained at $0.34 per share for Q1 2025, highlighting balance sheet prudence and ongoing cash returns .
    • Management consistency in messaging; reiterated demand softness is macro-driven (housing starts), not product-specific .

  • What Went Wrong

    • Net sales down 7.5% YoY to $23.33M; net income down 15.4% YoY to $3.57M .
    • Sequential downtick: revenue from $26.97M (Q4 2024) to $23.33M (Q1 2025); EPS from $0.46 to $0.35 .
    • Prior quarters noted overhead absorption pressure and higher overhead from newly leased facilities, compounding the impact of volume declines .

Financial Results

Year-over-Year (Q1 2024 vs Q1 2025)

MetricQ1 2024Q1 2025
Revenue ($USD Millions)$25.22 $23.33
Net Income ($USD Millions)$4.22 $3.57
Diluted EPS ($)$0.42 $0.35
Gross Profit ($USD Millions)$15.10*$14.07*
Gross Margin (%)59.9%*60.3%*
Operating Income ($USD Millions)—$4.05*
EBIT Margin (%)—17.4%*
EBITDA ($USD Millions)—$4.39*
EBITDA Margin (%)—18.8%*

Sequential (Q4 2024 vs Q1 2025)

MetricQ4 2024Q1 2025
Revenue ($USD Millions)$26.97 $23.33
Net Income ($USD Millions)$4.68 $3.57
Diluted EPS ($)$0.46 $0.35
Gross Profit ($USD Millions)—$14.07*
Gross Margin (%)—60.3%*
Operating Income ($USD Millions)—$4.05*
EBIT Margin (%)—17.4%*
EBITDA ($USD Millions)—$4.39*
EBITDA Margin (%)—18.8%*

KPIs

KPIQ1 2024Q1 2025
Weighted Average Shares10,094,322 10,094,322
Dividend per Share$0.34 $0.34

Segment Breakdown

  • Not disclosed in the company’s Q1 2025 press release/8-K .

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per ShareQ1 2025$0.34 (Dec 2024 declaration) $0.34 (Mar 27, 2025 declaration) Maintained
RevenueFY/Q1 2025Not providedNot providedN/A
MarginsFY/Q1 2025Not providedNot providedN/A
OpEx / OI&E / Tax RateFY/Q1 2025Not providedNot providedN/A

Earnings Call Themes & Trends

Note: No earnings call transcript was available in the document catalog; limited to press release/8-K commentary .

TopicPrevious Mentions (Q-2: Q3 2024)Previous Mentions (Q-1: Q4 2024)Current Period (Q1 2025)Trend
Macro/housing startsDemand suppressed; decline in housing starts cited; volume down Demand suppressed; lower unit volumes Demand suppressed; lower unit volumes; housing starts decline reiterated Persistent headwind
Overhead/absorptionLower absorption of factory labor/overhead; higher overhead due to new leases Higher salary-related expenses and travel Not specifically updated; volume-driven pressure remains Mixed but still a drag
Raw materialsLower raw material costs mitigated Q3 pressure Not emphasized Not emphasized Neutral to slightly positive earlier
Dividend/capital returns$0.34 declared for Jan 2025 $0.34 declared (Dec 2024) $0.34 declared for April 2025 payout Stable
Production/volumeReduced production from lower sales volume Volume-driven decline Volume-driven decline remains Ongoing constraint

Management Commentary

  • “Net sales … were $23,330,000 and $25,216,000, respectively, decreasing $1,886,000 or 7.5%. Net income … decreasing $651,000 or 15.4%. The decrease … was mainly due to lower sales unit volumes as the overall market continued to be suppressed because of, among other factors, a decline in housing starts.” — Dean W. Rivest, CEO .
  • Prior quarters: “The decrease in net income is mainly due to the decrease in net sales and a related decrease in production, which resulted in lower absorption of factory labor and overhead costs. Higher overhead expenses, mainly due to newly leased facilities, also contributed … and lower raw material costs were among the factors mitigating the decrease.” .
  • Q4 2024: Demand softness and higher salary-related and travel expenses noted alongside lower unit volumes .

Q&A Highlights

  • No Q&A section available; an earnings call transcript was not found through company documents or the document catalog for Q1 2025 . MarketBeat indicates a scheduled call, but no transcript is available via our sources .

Estimates Context

  • S&P Global consensus estimates for Q1 2025 appear unavailable (no EPS or revenue consensus returned). Actuals are shown for comparison.
MetricQ1 2025 ConsensusQ1 2025 Actual
Primary EPS Consensus MeanN/A$0.35
Revenue Consensus Mean ($USD Millions)N/A$23.33

Values retrieved from S&P Global where consensus would normally be shown.

Where estimates may need to adjust:

  • With no published consensus, sell-side coverage appears limited; a continued macro drag in housing starts suggests cautious revenue/EPS trajectory until end-market indicators improve .

Key Takeaways for Investors

  • Omega Flex delivered $23.33M revenue and $0.35 EPS, down YoY and sequentially, driven by lower unit volumes amid weak housing starts .
  • Gross margin around 60%* remains resilient, implying pricing and cost structure discipline despite volume pressure.*
  • No guidance was issued; dividend maintained at $0.34 per share, indicating confidence in liquidity and ongoing capital returns .
  • Prior quarter commentary flagged overhead absorption and new facilities costs as incremental headwinds; monitor for normalization as volumes recover .
  • Absence of a transcript limits visibility into near-term initiatives; investors should watch subsequent filings/releases for updates .
  • Near-term trading: lack of guidance and macro headwinds could cap upside; any signs of housing-start recovery may catalyze re-rating.
  • Medium-term thesis: stable margins and conservative balance sheet support defensiveness; operating leverage to volume recovery provides upside once end markets rebound .

Values marked with * retrieved from S&P Global.