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Syntec Optics Holdings, Inc. ("Syntec Optics" or the "Company") (NASDAQ:OPTX), a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment & scientific instruments manufacturers, reported financial and operational results for the full year 2024 and first half 2025.
Full Year 2024 Financial Highlights
First Half 2025 Financial Highlights
Operational and Business Highlights
The calendar year 2024 was marked by record-high Net Sales and growth within the new end-market – Communications, a double-digit increase. This includes sales for Space Optics and AI-driven Data Center optical connectivity.
Syntec Optics leveraged a robust platform and continued to innovate, offering products for existing markets and utilizing existing capabilities to serve existing customers. Space Optics reached higher production levels. Next, low-weight hybrid optics used in night vision goggle systems are finalizing volume production OEM acceptances. Production ramp occurs after the product is produced on a higher volume line, meets customer specifications, and is integrated into the end product by the customer for final OEM acceptance.
Full Year 2024 Financial and Operating Results
Sales from products increase by $1.9 million year-over-year in the Net Sales of $28.4 million, reflecting strong gains in capacity utilization and robust product demand while moving from pilot plant to mass production on several major product lines.
Adjusted EBITDA of $2.2 million decreased from the 2023 adjusted EBITDA of $5.3 million, primarily driven by the decrease in net income resulting from the costs associated with the company's transition and reorganizing for public markets, which the company believes can be reduced in the years to follow.
Specifically for the fourth quarter, we provided guidance at our last call that fourth-quarter revenue would exceed $7.4 million. Our actual revenue for the quarter was $7.3 million.
We are pleased to announce that in 2024, we invested $3.3 million in state-of-the-art equipment to enhance our capacity to reliably service our customers. These investments will enable us to continue developing our key technologies for our customers in 2025 and beyond.
First Half 2025 Financial and Operating Results
Sales for the six months ended June 30, 2025, totaled $13.6 million, an increase of $0.3 million from the same period in 2024. This growth was driven by increases in biomedical industry sales of $0.8 million and defense tech industry sales of $0.6 million.
Gross profit for the six months was $3.9 million, a $1.0 million improvement over 2024's $2.9 million gross profit, moving our gross margin from 22% for the six months ending June 30, 2024, up to 29% for the six months ending June 30, 2025. Improvements across materials, labor, and manufacturing overhead all contributed to the improvements as the Company drives towards greater efficiencies. The company believes it will continue to improve gross profits as yields improve.
General and administrative expenses for the six months ending June 30, 2025, were $3.5M, a $0.6 million reduction from 2024. There were reductions of $0.4 million in outside consulting, $0.1 million in travel.
Adjusted EBITDA of $2.1 million increased by $1.2 million from the first half of the prior year, resulting in our adjusted EBITDA as a percentage of revenue rising from 5.8% in 2024 in the same period to 15.3% for the six months ended June 30, 2025, representing a significant improvement in profitability.
The Company ended the second quarter of 2025 with unused lines of credit totaling $1.5 million and $2.8 million, as well as a paydown of 8% principal on other commercial bank lines for the six months ended June 30, 2025.
Net income for the six-month period ending June 30, 2025, of $0 million was an improvement of $0.9 million versus the same period in 2024, reflecting a $1.0 million improvement in gross profit and a $0.6 million reduction in general and administrative expenses, partially offset by increased interest and other expenses.
Future Growth
Syntec Optics' strategy is to lead the large yet often overlooked market for light-enabled products by offering a diverse product portfolio tailored to the needs of blue-chip customers. This approach leverages our operational strengths, including the horizontal and vertical integration of optics manufacturing processes and techniques. We believe that, as more products become light-enabled, we will continue to have growth opportunities for many years to come. Here is how we are currently executing on our strategy.
We have implemented a clear, three-pronged execution plan that provides a roadmap for sustainable growth and involves everyone in the company, including technicians who design and manufacture the intricate optics. By focusing first on operational excellence, then scaling our talented team, and finally expanding into new, high-growth, light-enabled markets, we are positioning Syntec Optics to capitalize on the immense opportunities.
The Company's execution plan is centered on the following three pillars:
1. Operational Excellence to Maximize Capacity: The first prong focuses on improving yield and maximizing capacity utilization to meet robust demand for our current products. All key customers are demanding increased volumes, in most cases, 20%, 50% to 100% higher than we are currently delivering. The Company is deploying enhanced operations KPIs, daily technician meetings (DTMs), and ERP dashboards to provide real-time data for decision-making. This initiative targets increased efficiency in key growth areas: LEO Satellite Optics (Communication), Aiming / Night Vision / Integrated Scopes Optics (Defense), Artificial Intelligence-driven Data Center Optics (Communication), and Hospital Diagnostic Optics (Biomedical). This execution builds upon our highly defensible model of vertical and horizontal integration.
2. Scaling Production with Increased Staffing: Second, simultaneously targeted yield improvements from 40%-50% in some cases to 95%, Syntec is increasing staffing on night shifts. This will allow the Company to continue scaling its production platforms, ensuring it can not only satisfy existing customer demand but also prepare for the next wave of growth from new and emerging applications.
3. Expansion into New Breakthrough Applications: The third prong centers on innovation and market expansion. As more products across end-markets become light-enabled, Syntec is securing new customers in breakthrough applications. Key new areas of delivering products include Fusion Energy (a new end-market), Hyperspectral Imaging (Defense), Ground Network for Satellite Communications (Space), and furthering Quantum Computing / DNA Sequencing, all simultaneously positioning the Company at the forefront of next-generation technology.
Syntec intends to codify this execution plan so that it can be applied to future inorganic growth through acquisitions.
Posted In: OPTX
