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Dec 31, 2024
Napco Q2 2025 Earnings Report
NAPCO Security Technologies reported a decrease in net sales but an increase in recurring service revenue and gross profit margin compared to the prior year quarter.
Key Takeaways
NAPCO Security Technologies reported a decrease in net sales by 9.7% year-over-year, but an increase in recurring service revenue by 14.4%. The gross profit margin improved to 57.0% from 52.6% in the prior year quarter. Diluted EPS decreased to $0.28 from $0.34 in the prior year quarter.
Net sales decreased by 9.7% year-over-year to $43.0 million.
Recurring service revenue increased by 14.4% to $21.2 million.
Gross profit margin improved to 57.0% compared to 52.6% in the prior year quarter.
Diluted EPS decreased to $0.28 from $0.34 in the prior year quarter.
Revenue by Segment
Forward Guidance
NAPCO Security Technologies anticipates improvement in equipment sales through the balance of Fiscal 2025 and remains confident that its strong net income, Adjusted EBITDA and cash flow, will improve further.
Positive Outlook
- Anticipate improvement in equipment sales through the balance of Fiscal 2025
- Confident that strong net income will improve further
- Confident that Adjusted EBITDA will improve further
- Confident that cash flow will improve further
- Will strive to accomplish goal of continued financial strength, product innovation, technical superiority and strong profitability
Challenges Ahead
- Reduction in equipment revenue was a result of lagging sales in intrusion and access alarm products and door locking devices
- Reduced sales to two of our larger distributors
- Timing of new project work for custom locking products has resulted in reduced sales of locking devices
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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