Omega Flex (OFLX) investor relations material

Executive summary

• Net sales for Q2 2026 were $24.1M, down 5.8% year-over-year; six-month sales were $47.2M, down 3.5% year-over-year, primarily due to lower sales volumes amid a decline in housing starts.

• Gross profit margin declined to 55.0% in Q2 2026 from 60.4% in Q2 2025, mainly due to higher raw material and transportation costs.

• Operating profit for Q2 2026 was $3.1M, a 35.3% decrease year-over-year; six-month operating profit was $5.4M, down 38.9%.

• Net income attributable to shareholders was $2.7M for Q2 2026 (down 35.6%) and $4.8M for the first half (down 38.5%), impacted by higher raw material, marketing, and certification costs.

• The company rebranded its black-jacketed CSST, launched a new fitting in July 2026, and MediTrac® CMT received CE mark certification in August 2026.

Financial highlights

• Q2 2026 net sales: $24.1M (down 5.8%); six months: $47.2M (down 3.5%).

• Q2 2026 gross profit: $13.2M (margin 55.0%); six months: $26.3M (margin 55.8%).

• Q2 2026 operating profit: $3.1M (down 35.3%); six months: $5.4M (down 38.9%).

• Q2 2026 net income: $2.7M (down from $4.2M); six months: $4.8M (down from $7.7M).

• Cash and cash equivalents at June 30, 2026: $47.9M, down $5.3M from year-end 2025.

Outlook and guidance

• Higher raw material and marketing costs are expected to persist in the near term but are anticipated to normalize over time.

• Management expects existing cash and credit facilities to be sufficient for at least the next twelve months.

• Future capital needs will depend on revenue growth, expansion, and potential acquisitions.

• New product launches and certifications are expected to support future growth and market expansion.