Optex Systems Holdings Inc (NASDAQ: OPXS)

Optex Systems Holdings, Inc. manufactures optical sighting systems and assemblies for the U. S. Department of Defense, foreign military applications, commercial markets, and consumer markets. The company's products are installed on a variety of U. S. military land vehicles such as the Abrams and Bradley fighting vehicles, light armored and advanced security vehicles, and the Stryker family of vehicles. Optex also produces numerous periscope configurations, rifle and surveillance sights, and night vision optical assemblies.

Optex generates revenue primarily through the sale of build-to-customer print products delivered directly to the armed services and to defense prime contractors. Less than 1% of revenue comes from the resale of products substantially manufactured by others, typically simple replacement parts for larger systems previously produced by the company. The company serves customers in four primary categories: prime defense contractors, defense subcontractors, military suppliers to foreign governments, and commercial optical assembly suppliers.

The company operates through the following segments: Optex Systems – Richardson and Applied Optics Center.

• Optex Systems – Richardson: This segment manufactures periscopes, collimator assemblies, vision blocks, laser interface filters, and optical sighting systems for ground combat vehicles. The segment produces products such as the M36 Thermal Periscope, Unity Mirrors, Optical Weapon System Support and Maintenance (OWSS), Commander Weapon Station Sight (CWSS), and Sight Assembly Refurbishment (GOI MOD/Aquila). It also supplies components for the XM30 Driver Periscope Assembly and Howitzer systems including the M137 Telescope, M187 Mount, and M119 Aiming Device.

• Applied Optics Center: This segment specializes in laser interference filters, optical assemblies, laser filter units, reticles, day windows, binoculars, and specialty thin film coatings. The segment provides products including Laser Interference Filter (LIF), Laser Filter Units (LFU), and Light Interference Filters used in night vision devices. It also offers military specification High Efficiency Anti-Reflective Coatings for Infrared applications in both military and commercial markets.

Optex holds a competitive position in the defense optics industry as a supplier of precision optical components for major ground vehicle platforms. The company competes primarily on its ability to design and engineer products to meet customer performance specifications, with product quality, reliability, and delivery adherence being key factors. While competitors such as Gus Periscopes for the Optex Richardson site and Materion-Barr, G&H Artemis, and Alluxa for thin film coatings at Applied Optics Center exist, Optex maintains advantages through its specialized workforce, proprietary technologies, and long-standing relationships with defense contractors.

Optex serves a diverse customer base including the U. S. Department of Defense, Defense Logistics Agency Land and Maritime, General Dynamics Land Systems - Canada, BAE Systems, L-3 Communications, Elbit Systems, Sig Sauer, Vortex Optics, Trijicon Inc., Ducommun Aerostructures, and foreign military representatives from Israel, Australia, South America, and Canada. Commercial customers include Nightforce Optics, Lightforce USA, Inc., and Gables Engineering. During the twelve months ended September 28, 2025, approximately 70% of gross business revenue was derived from five major customers: U. S. government agencies (29%) and four U. S. defense contractors accounting for 19%, 10%, 6%, and 6% respectively.