Omega Flex, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2024, with net sales of $101.7 million, down 8.8% from $111.5 million in 2023. The decrease in revenue was attributed primarily to lower sales unit volumes, influenced by a general market suppression and a decline in housing starts. Gross profit margins remained relatively stable at 61.2%, compared to 61.3% in the previous year, while operating profit fell to $21.6 million, a decrease of 16.4% from $25.8 million in 2023. The company’s net income also declined to $17.9 million from $20.7 million, reflecting the overall downturn in sales.
In terms of operational changes, Omega Flex formed a new subsidiary, Flex-Trac, Inc., in October 2024, focusing on its MediTrac® corrugated medical gas tubing products. This strategic move is expected to enhance the company’s capabilities in the healthcare sector. The company also discontinued its AutoSnap® fitting in late 2023, citing overwhelming market acceptance of the AutoFlare® fitting. The company’s employee headcount remained stable at approximately 175 full-time employees as of December 31, 2024.
The company’s distribution network continues to be a significant aspect of its operations, with a notable concentration of sales through a major distributor, which accounted for 15% of total sales in both 2024 and 2023. Despite the decline in sales, Omega Flex maintained a strong cash position, ending the year with $51.7 million in cash and cash equivalents, an increase of 11.5% from the previous year. The company also declared dividends totaling $13.5 million during 2024, reflecting its commitment to returning value to shareholders.
Looking ahead, Omega Flex anticipates challenges due to ongoing market conditions, particularly in the residential construction sector, which has seen a modest decrease in housing starts. The company remains focused on leveraging its product innovations and expanding its market presence, particularly in the healthcare sector with its MediTrac® products. Management expressed confidence in the company’s ability to navigate these challenges, supported by its strong cash position and strategic initiatives aimed at enhancing operational efficiency and product offerings.
About Omega Flex, Inc.
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