Optex Systems Holdings Inc (OTC: OPXS) is a defense optics manufacturer that designs and produces precision optical assemblies and systems for U.S. military ground vehicles and other military platforms. Revenue comes from firm fixed-price government prime contracts and subcontracts, with products delivered to U.S. government agencies and domestic defense prime contractors. The company operates two segments: Optex Systems Richardson, which generated $23.8 million in external revenue for the twelve months ended September 28, 2025, and Applied Optics Center Dallas, which generated $17.6 million, for a consolidated total of $41.3 million, up from $34.0 million for the twelve months ended September 29, 2024. Barriers to entry are high, requiring government-approved accounting systems, proprietary production processes, and lengthy product qualification cycles. The company competes in a market where government buyers typically maintain two qualified suppliers, splitting contracts between them.

Revenue model

Firm fixed-price government prime contracts and subcontracts. Revenue is transactional, tied to delivery of optical assemblies and systems against specific contract orders. Backlog as of September 28, 2025 totaled approximately $36.2 million in total customer orders for FY2025, with backlog items scheduled for delivery in FY2026 and beyond.

Products and services

Periscopes and periscope assemblies (largest product line at Richardson, $11.5 million FY2025 orders), sighting systems ($3.3 million FY2025 orders), collimator assemblies, vision blocks, laser interface filters, optical assemblies, laser filters ($10.2 million FY2025 orders at Applied Optics Center), day windows, infantry rifle scopes, night vision monoculars, infantry and navy binoculars, night goggles, and infrared aircraft filters.

Customers and end markets

Primary customers are U.S. government agencies and domestic defense prime contractors including BAE Systems. End markets are U.S. military ground vehicles (Abrams, Bradley, and other platforms), infantry optics, naval optics, and aircraft systems. Foreign Military Sales customers include Canada, Saudi Arabia, Kuwait, Morocco, Egypt, South America, and Israel. The Israeli Ministry of Defense awarded a $3.4 million contract in November 2022 for Night Vision Rifle Scope refurbishment through FY2026.

Value-chain role

Tier 1 and Tier 2 defense supplier. Acts as both prime contractor (direct government solicitations) and subcontractor (under prime contractors such as BAE Systems). Manufactures finished optical subassemblies and components integrated into larger ground vehicle and infantry systems.

Geographic exposure

Manufacturing operations in Richardson, Texas (Optex Systems segment) and Dallas, Texas (Applied Optics Center segment). End-market exposure includes U.S. domestic military programs and Foreign Military Sales programs across multiple countries.

Source: SEC 10-K, filed 2025-12-17

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