Omni Lite Industries Canada (OML) Q4 2025 earnings summary

Executive summary

• Fourth quarter 2025 revenue reached CAD 4.1 million, up 18% year-over-year, while full-year 2025 revenue was CAD 14.9 million, down 6% from 2024, mainly due to lower electronics business contribution.

• Adjusted EBITDA for Q4 was CAD 61,000 (1.5% margin), up from a loss of CAD 83,000 in Q4 2024; full-year adjusted EBITDA was approximately CAD 890,000, both below expectations due to operational issues and shipment timing.

• Net income for Q4 2025 was CAD 176,000 ($0.02 per diluted share); full-year net income was CAD 118,151 ($0.01 per diluted share), both lower than prior year.

• Bookings reached record highs: CAD 5.5 million in Q4 and CAD 19.5 million for the year, resulting in a historic backlog of CAD 8.8 million.

• Operational issues at the Cerritos facility have been resolved, and delayed shipments at Monzite and DP Cast are expected to contribute in Q1 2026.

Financial highlights

• Adjusted free cash flow for Q4 was CAD 451,000, up from CAD 248,000 in the prior year; full-year free cash flow was CAD 1.0 million, down from CAD 1.8 million in 2024.

• Year-end cash position exceeded CAD 2.8 million with no debt, a slight decrease from 2024.

• Capital expenditures for the year totaled approximately CAD 55,000.

• Acquisition of eComp used net cash of CAD 272,000.

Outlook and guidance

• Strong bookings and backlog at Monzite and across fasteners and electronics support a positive outlook for 2026.

• Management expects profitability to improve in 2026 due to operational improvements, a new pricing agreement, and additional resources.

• Monzite's 2026 performance is expected to resemble 2024, with continued strong demand from defense programs.

• DP Cast is expected to show significant improvement in 2026 due to renegotiated contracts and operational enhancements.

• Additional resources have been allocated to DP Cast and Cerritos to drive sequential improvement.