BK Technologies Reports Financial Turnaround with $76.6M in Sales and $8.4M Net Income for Fiscal Year 2024

BK Technologies Corporation (NYSE American: BKTI) reported a notable financial turnaround for the fiscal year ending December 31, 2024, with net sales reaching approximately $76.6 million, a 3.4% increase from $74.1 million in 2023. The company achieved a net income of approximately $8.4 million, or $2.35 per share, compared to a net loss of $2.2 million, or $0.65 per share, in the previous year. This improvement was primarily driven by increased sales of the BKR9000 portable land mobile radios (LMRs) to federal, state, and municipal public safety agencies, alongside enhanced gross profit margins, which rose to 37.9% from 30.0% in 2023.

The company's operational efficiency was bolstered by the transition of its manufacturing production to East West Manufacturing, LLC, which was completed in the third quarter of 2024. This strategic move contributed to a reduction in selling, general, and administrative expenses, which fell to approximately $21.2 million (27.7% of sales) from $23.0 million (31.1% of sales) in the prior year. Additionally, BK Technologies reported a backlog of unshipped customer orders totaling approximately $21.8 million as of December 31, 2024, up from $16.0 million in 2023, indicating strong demand for its products.

In terms of strategic developments, BK Technologies entered into a Master Supply Agreement with East West Manufacturing in November 2023, which included a stock purchase agreement where East West acquired 77,520 shares of the company's common stock valued at $1 million. The company also established a new revolving line of credit with Fifth Third Bank, providing up to $6 million in funding, with the potential to increase to $10 million under certain conditions. This financial flexibility is expected to support ongoing operations and future growth initiatives.

As of December 31, 2024, BK Technologies employed 113 individuals, a slight increase from the previous year, and continued to focus on expanding its product offerings, particularly within its SaaS business unit. The company plans to introduce new public safety solutions under the BK ONE brand, which will include enhanced interoperability features aimed at improving first responders' efficiency in the field. The company remains optimistic about its growth trajectory, although it acknowledges potential challenges related to supply chain disruptions and geopolitical tensions that could impact future operations.

Looking ahead, BK Technologies aims to leverage its improved financial position and operational efficiencies to capture new market opportunities, particularly in the government and public safety sectors. The company is committed to enhancing its product lines and expanding its customer base, while also addressing the material weakness identified in its internal controls over financial reporting, particularly concerning its income tax provision. Management is actively working on remediation plans to strengthen its internal controls and ensure compliance with regulatory requirements.