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Omega Flex Q1 Earnings Drop Y/Y on Weak Housing Demand, Stock Down 2%

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Shares of Omega Flex, Inc. (OFLX - Free Report) have declined 1.9% since the company reported its earnings for the quarter ended March 31, 2025. This compares to the S&P 500 index’s 1.7% change over the same time frame. Over the past month, the stock moved -6.9% versus the S&P 500’s 11.7% change, reflecting a notable underperformance amid broader market strength.

Omega Flex reported first-quarter 2025 earnings per share of 35 cents, which decreased from 42 cents in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Revenues of $23.3 million denoted a 7.5% decline from $25.2 million in the same quarter last year. Net income fell to $3.6 million, marking a 15.4% year-over-year decline from $4.2 million. 

The company attributed these declines primarily to reduced unit volumes, which it linked to a continued slowdown in the broader market, particularly a downturn in housing starts that has pressured demand for its flexible metal hose and gas piping products.

The number of weighted average shares outstanding remained unchanged year over year at 10.1 million.

Omega Flex, Inc. Price, Consensus and EPS Surprise

Omega Flex, Inc. Price, Consensus and EPS Surprise

Omega Flex, Inc. price-consensus-eps-surprise-chart | Omega Flex, Inc. Quote

Management Commentary

CEO Dean W. Rivest noted that the first-quarter results were affected by a subdued market environment. Specifically, he cited a decrease in housing starts as a contributing factor to the lower sales volumes. While no forward-looking guidance was issued, Rivest’s comments suggest management is attributing the performance shortfall to macroeconomic conditions rather than company-specific execution issues.

Factors Influencing the Headline Numbers

The primary driver behind both the revenue and profit declines was a reduction in unit sales volume. This contraction was largely tied to market-wide softness rather than pricing or production issues. The housing sector, a key end market for Omega Flex, appears to be under pressure, potentially from elevated interest rates or a pullback in construction activity. 


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