Optex Systems Holdings, Inc. (OPXS) has experienced a substantial share price increase of 139.5% over the past year, significantly outperforming the aerospace and defense equipment industry, which grew by 46.2%. Competitors such as BWX Technologies (BWXT) and Axon Enterprise (AXON) saw smaller gains of 98% and 8.2%, respectively. The driving factors behind Optex’s growth include strong demand for its precision optical systems, a growing order backlog, and long-standing relationships with major defense contractors.
During the first quarter of fiscal 2026, Optex recorded new customer orders totaling approximately $7.9 million, indicating robust order activity. The company also secured a $2.3 million contract for optical sub-assemblies and a $2.2 million order related to a night vision goggle program, showcasing its critical role in military optical systems. However, Optex faces challenges such as rising raw material costs and supply chain disruptions, potentially impacting its margins and production timelines.
Currently, OPXS is trading at 2.06X trailing 12-month EV/sales, significantly below the industry average of 14.71X and its peers, suggesting it may be undervalued compared to market standards.
