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Omega Flex, Inc. (OFLX)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $24.234M, down 2.6% year over year (vs. $24.880M in Q3 2024), with net income of $3.688M and EPS of $0.37; management attributed declines primarily to lower unit volumes amid a challenged residential housing market (higher construction costs and sales prices) .
  • Sequentially, revenue declined from $25.525M in Q2 2025 to $24.234M in Q3 2025, with EBIT margin easing to ~17.3% and net income margin ~15.2% (margins resilient but lower vs. prior year) .*
  • Gross margin remained robust at ~60% for Q3 2025, broadly consistent with recent quarters despite softer volumes .
  • The Board maintained the regular quarterly dividend at $0.34 per share during Q3 (declared Sept 12, 2025), consistent with prior quarters .
  • S&P Global consensus EPS and revenue estimates for Q3 2025 were not available, limiting beat/miss assessment (values retrieved from S&P Global).*

What Went Well and What Went Wrong

What Went Well

  • Gross margin resilience (~60%) despite volume pressure, supporting profitability even as sales slipped .
  • Operating profitability preserved: Q3 2025 EBIT margin ~17% and net income margin ~15% in a soft demand environment (down vs. last year but still healthy for the category) .*
  • Capital returns steady: the company declared and maintained a $0.34 quarterly dividend during Q3, signaling confidence in cash generation .

Management quote: “The decrease in net sales and net income was mainly due to lower sales unit volumes as the residential housing market continues to be challenged, among other factors, by higher construction costs and sales prices.” — Dean W. Rivest, CEO .

What Went Wrong

  • Top line contraction persisted: Q3 2025 net sales down 2.6% YoY to $24.234M (vs. $24.880M), with net income down 20.1% YoY to $3.688M (vs. $4.617M) .
  • Sequential slowdown: revenue fell from $25.525M in Q2 2025 to $24.234M in Q3 2025, reflecting continued demand softness in residential end markets .
  • Profitability compressed vs. prior year as volumes declined, evidenced by lower EBIT and net income levels versus Q3 2024 .*

Financial Results

P&L and Margin Summary (USD)

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025
Revenue ($M)$24.880 $26.965*$23.330 $25.525 $24.234
Net Income ($M)$4.617 $4.682 $3.568 $4.156 $3.688
Diluted EPS ($)$0.46 $0.46 $0.35 $0.41 $0.37
EBIT ($M)$5.468 $5.762*$4.050 $4.722 $4.185
Gross Margin (%)61.70% 61.53%*60.32% 60.42% 60.17%
EBITDA Margin (%)23.23%*22.74%*18.82%*19.84%*18.59%*
EBIT Margin (%)21.98%*21.37%*17.36%*18.50%*17.27%*
Net Income Margin (%)18.56%*17.36%*15.29%*16.28%*15.22%*

Notes:

  • Asterisk () indicates values retrieved from S&P Global due to lack of explicit document citation. Values retrieved from S&P Global.
  • YoY and QoQ changes are calculated from the cited reported figures.

YoY and QoQ Snapshot for Q3 2025 (calculated)

  • Revenue: -2.6% YoY (vs. $24.880M) ; -5.1% QoQ (vs. $25.525M) .
  • Net Income: -20.1% YoY (vs. $4.617M) ; -11.3% QoQ (vs. $4.156M) .
  • EPS: -$0.09 YoY ($0.37 vs. $0.46) ; -$0.04 QoQ ($0.37 vs. $0.41) .

KPIs

  • Weighted Average Shares: 10,094,322 in Q1, Q2, and Q3 2025 .
  • Dividend per Share: $0.34 declared March, June, and September 2025 .

Guidance Changes

Omega Flex did not provide quantitative revenue, EPS, margin, OpEx, OI&E, or tax guidance in Q3 2025. Dividend policy was reiterated.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per ShareRegular quarterly$0.34 declared Mar 27, 2025 ; $0.34 declared Jun 18, 2025 $0.34 declared Sept 12, 2025 Maintained

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was found for OFLX; management commentary is drawn from press releases.

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
Residential housing demand/startsQ1: Lower sales due to decline in housing starts . Q2: Market suppressed; decline in housing starts .Housing market challenged by higher construction costs and sales prices; lower unit volumes .Ongoing headwind
Gross marginGM ~60% in Q1 and Q2 .GM ~60% in Q3 .Stable at elevated levels
Capital returns (dividend)$0.34 DPS in Mar and Jun 2025 .$0.34 DPS in Sept 2025 .Maintained

Management Commentary

  • Strategic context: Management continues to cite residential market headwinds as the primary driver of lower unit volumes and sales: “The decrease in net sales and net income was mainly due to lower sales unit volumes as the residential housing market continues to be challenged, among other factors, by higher construction costs and sales prices.” — Dean W. Rivest, CEO .
  • Results framing: “Net Sales for the three months ended September 30, 2025 were 2.6% lower than the third quarter of 2024. Net income for the third quarter of 2025 was 20.1% below the same period in 2024.” .

Q&A Highlights

  • No earnings call or Q&A transcript for Q3 2025 was located; no additional clarifications beyond the press release were available [SearchDocuments returned no earnings-call-transcript for OFLX].

Estimates Context

  • S&P Global consensus estimates for Q3 2025 revenue and EPS were not available for OFLX; the data feed returned actuals only and no estimate counts, so a beat/miss determination versus Wall Street consensus cannot be made at this time (values retrieved from S&P Global).*
MetricPeriodActualConsensusSurprise
Revenue ($M)Q3 2025$24.234 N/A*N/A*
EPS ($)Q3 2025$0.37 N/A*N/A*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Demand softness in residential end markets persisted into Q3, driving a 2.6% YoY revenue decline and a 20% YoY net income decline; management points to housing market pressures (higher construction costs and sales prices) as the key drag .
  • Margins remain a relative bright spot, with gross margin ~60% and double‑digit EBIT and net income margins; however, profitability is lower than last year due to volume deleveraging .*
  • Sequential downtick from Q2 to Q3 underscores continued near‑term pressure; limited visibility given lack of formal guidance and no earnings call .
  • Capital return intact: the $0.34 quarterly dividend was maintained through September, suggesting confidence in cash flow despite softer sales .
  • With no published Street consensus, near‑term stock reaction is more likely tied to narrative (housing demand trajectory, construction cost inflation) and margin resilience rather than headline beats/misses (values retrieved from S&P Global).*
  • Near‑term: monitor housing starts, pricing/mix discipline, and any signs of demand stabilization into Q4. Medium‑term: continued gross margin strength and disciplined cost structure could support earnings recovery when volumes normalize .*

Footnotes:

  • Asterisk (*) indicates values retrieved from S&P Global due to lack of explicit document citation or consensus values.
  • YoY/QoQ changes are calculated from reported figures cited above.