• FLIR Systems for military vehicle vision and sighting: Optex Systems specializes in providing advanced optical sighting systems and periscopes for military vehicles, similar to how FLIR Systems is known for its specialized thermal and sensor technologies in defense.
• A specialized General Dynamics, but for military vehicle optics: Just as General Dynamics builds major military platforms like tanks and armored vehicles, Optex Systems focuses specifically on manufacturing the critical optical 'eyes' and aiming systems that go into those fighting vehicles.

• Periscopes: Manufactures various types of periscopes, including laser-protected, day/thermal, and vision blocks, primarily for military land vehicles.
• Sighting Systems: Provides a range of sighting systems such as back up sights, digital day and night systems, and commander weapon station sights.
• Howitzer System Components: Produces optical and mechanical components specifically for howitzer systems, including telescopes, mounts, and aiming devices.
• Applied Optics & Components: Offers laser filter units, optical assemblies, day windows, binoculars, specialty thin film coatings, and various optical lenses and elements.
• Muzzle Reference Systems: Develops systems used for precise weapon calibration and alignment.
• Night Vision Optical Assemblies: Creates optical components specifically designed for night vision applications and devices.

Major Customers of Optex Systems (OPXS)

Optex Systems Holdings, Inc. primarily sells its optical sighting systems and assemblies directly to the following major customers and customer categories:

• The U.S. Federal Government: Specifically, the U.S. Department of Defense for domestic military applications.
• Foreign Governments: For foreign military applications, supporting various international defense needs.
• Prime Contractors: These are companies that serve as primary contractors to governments, manufacturing and assembling major military systems, such as the Abrams, Bradley, and Stryker families of fighting vehicles. Optex Systems' products are integrated into these larger systems. The provided background information does not list the specific names of these prime contractors.
• Commercial Markets: The company also sells its products to commercial markets within the United States, although its primary focus is on military and defense applications.

Chad George, President and Chief Executive Officer

Chad George was appointed President and Chief Executive Officer of Optex Systems Holdings, Inc., effective December 20, 2025, succeeding Danny Schoening. Prior to this role, he served as President. Mr. George brings over two decades of defense industry experience, having held senior operations and supply chain leadership positions, including Vice President of Operations and Supply Chain at Leonardo DRS and earlier roles at Raytheon, where he began his professional career as a manufacturing engineer. He also spent four years in the consumer goods sector for Dr. Pepper before returning to defense. He holds a Bachelor's Degree in Industrial Engineering from Oklahoma State University and an MBA from the University of Texas at Dallas.

Karen Hawkins, Chief Financial Officer

Karen Hawkins joined Optex Systems in April 2007 as Controller and was promoted to Chief Financial Officer on November 19, 2014. She became a Certified Public Accountant in 1992 and possesses over 25 years, with some sources stating over 30 years, of experience in Financial Accounting and Management, primarily within the Defense and Transportation Industries. Her expertise includes Financial & Cost Accounting, Government Pricing, Financial Analysis, and Internal Auditing. Her past experience also encompasses Program Management, Materials Management, and Business Development, with previous positions at General Dynamics – Ordinance and Tactical Division, Luminator, and Johnson Controls – Battery Division.

Danny Schoening, Chairman of the Board

Danny Schoening served as the Chief Executive Officer of Optex Systems for 13 years before transitioning to Chairman of the Board, effective December 20, 2025. He was instrumental in establishing the systems and infrastructure for the company's rapid growth. Before joining Optex Systems, Mr. Schoening was the Vice President of Operations for The Finisar Corporation AOC Division for four years, where he led a team of up to 200 employees in producing vertical cavity lasers. Prior to Finisar, he spent 17 years as Director of Operations for multiple divisions of Honeywell International. He holds a Bachelor of Science in Manufacturing Engineering Technology from the University of Nebraska, an MBA from Southern Methodist University, and holds three United States Patents.

Bill Bates, Applied Optics Center General Manager

Bill Bates has thirty-five years of experience in optical component and system manufacturing. He currently serves as the General Manager of the Applied Optics Center in Dallas, Texas, overseeing Thin-film Coating and Optical Assembly Operations. His extensive career includes various positions within Litton Industries, Northrop Grumman Corporation, and L-3 Communications, where he previously served as Vice President and General Manager within the Warrior Systems Division. Mr. Bates earned a Bachelor of Science in Business Administration from DeVry University and an MBA from the University of Texas at Dallas.

Brian Bushnell, Director of Optical Coatings Technology

Brian Bushnell brings a strong background in Opto-Mechanical Engineering as well as Thin-Film Optical Coating development and process improvement to Optex Systems. He previously spent eight years in managerial roles at Raytheon in McKinney, Texas, most recently as the Senior Manager of Mechanical Engineering. Mr. Bushnell holds an MBA from Texas A&M University - Commerce, a Master of Applied Physics from the University of Texas at Dallas, and a Bachelor of Mechanical Engineering from the University of Texas at Arlington.

Key Risks to Optex Systems (OPXS)

1. High Dependence on Government Contracts and Defense Spending: Optex Systems Holdings, Inc. primarily manufactures and sells optical sighting systems and assemblies to the U.S. Department of Defense and foreign military applications, with defense customers accounting for approximately 90% of its revenue. This makes the company highly susceptible to fluctuations in government budgets, changes in defense spending priorities, political decisions impacting military programs, and delays in the U.S. government's budget and appropriation process.
2. Supply Chain Vulnerabilities and Component Shortages: The defense industry, and specifically manufacturers of complex optical and electro-optical systems, face significant risks related to global supply chain disruptions. These include shortages of critical components, such as semiconductors and specialized materials, quality issues with outsourced components, and the challenges of managing complex, multi-tiered supplier networks. Such disruptions can lead to production delays, increased costs, and an inability to meet contract delivery timelines.
3. Technological Obsolescence and Intense Competition: The military and defense sector is characterized by rapid technological advancements. Optex Systems' products, including periscopes and sighting systems, are vulnerable to becoming obsolete if the company fails to innovate or keep pace with emerging technologies, such as advanced AI-driven surveillance and targeting systems, or if competitors develop superior or more cost-effective solutions. The high cost and complexity of modern thermal imaging and electro-optic targeting tools also pose challenges to market adoption and technological updates.

Addressable Markets for Optex Systems (OPXS) Main Products

Optex Systems Holdings, Inc. manufactures optical sighting systems and assemblies for defense and commercial markets. The addressable markets for their main products and services are primarily within the global and U.S. defense sectors, encompassing military optronics, electro-optical and infrared (EO/IR) systems, tactical optics, periscopes, and military binoculars.

• Military Optronics Surveillance and Sighting Systems: This global market, which includes various sighting systems and surveillance equipment, is projected to grow from an estimated $2.96 billion in 2024 to $8.06 billion by 2034, at a Compound Annual Growth Rate (CAGR) of approximately 10.5%. Another estimate values this global market at US$17.35 billion in 2023, with a projection to reach US$26.85 billion by 2031, growing at a CAGR of 5.6%. The land-based segment held a significant share of this market in 2023.
• Military Electro-Optical and Infrared (EO/IR) Systems: The global market for military EO/IR systems, covering technologies found in many of Optex Systems' products, was valued at USD 17.04 billion in 2025 and is projected to reach USD 28.98 billion by 2034, exhibiting a CAGR of 5.9%. Another analysis estimates the global market at USD 8.93 billion in 2025, growing to USD 13.51 billion by 2035 at a CAGR of 4.52%. North America held a 30.12% share of this global market in 2025. Specifically, the U.S. Military Electro-Optical and Infrared Systems Market was valued at USD 2.69 billion in 2025 and is expected to grow to USD 3.98 billion by 2035, with a CAGR of 4.01%. The land-based platform segment is anticipated to grow at a CAGR of 5.21% through 2031.
• Tactical Optics: The global tactical optics market, encompassing various optical systems for improved visibility, accuracy, and aiming, was valued at USD 13.81 billion in 2024 and is expected to grow to USD 26.04 billion by 2033, with a CAGR of 7.3%. Another estimate places the global market at USD 14.10 billion in 2025, growing to USD 25.00 billion by 2034 at a CAGR of 6.40%. North America held the largest market share at 41.60% in 2025, with the U.S. market specifically valued at USD 5.12 billion in 2023.
• Military Periscopes (Submarine): While Optex Systems primarily provides periscopes for land vehicles, the global submarine periscope market (a related category) was valued at approximately USD 400 million in 2023 and is projected to reach USD 720 million by 2032, with a CAGR of 6.5%. Another source estimated the market at $500 million in 2025, with projections to exceed $750 million by 2033, demonstrating a CAGR of 5%. North America and Europe are noted as dominant regions in this market.
• Military Binoculars: The global military binoculars market size was approximately $752 million in 2023 and is projected to reach $1.2 billion by 2032, growing at a CAGR of 5.5%. North America is expected to dominate this market. More broadly, the global binoculars market (including defense applications) was valued at USD 1.18 billion in 2025 and is projected to grow to USD 1.81 billion by 2034, at a CAGR of 4.93%. North America accounted for a 32.43% market share in 2025. The global Military Binocular Night Vision Device market is projected to reach $4.02 billion by 2025, with a CAGR of 8.3% during 2025-2033.
• Military Laser Systems: Relevant for Optex's laser filter units and related optical components, the global military laser system market was valued at USD 5.7 billion in 2024 and is estimated to grow to USD 14 billion by 2034, with a CAGR of 9.6%. Another report values the global market at USD 4.12 billion in 2023, projected to reach USD 7.61 billion by 2031 at a CAGR of 8.04%. The U.S. Military Laser Systems market was valued at USD 1.64 billion in 2024 and is projected to reach USD 2.68 billion by 2032, growing at a CAGR of 6.30%.
• Precision Optics: The broader precision optics market, which includes optical components like lenses, mirrors, and prisms used in advanced optical solutions and relevant to Optex's optical assemblies, day windows, and specialty thin film coatings, is valued at $29.0 billion in 2024 and is predicted to reach $92.9 billion by 2034 at a 12.7% CAGR.

1. Increased Defense Spending and Demand for Opto-Mechanical Assemblies: Optex Systems is positioned to benefit from increased defense spending, which is driving higher demand for its opto-mechanical assemblies. The company plans to increase its investment to meet this anticipated demand. This aligns with their strong exposure to defense budgets.
2. Growth in Periscope Production and New Product Development: The company has experienced significant growth in periscope production and is actively engaged in new product development, such as for the XM30 program. Higher periscope production and increased XM30 activity, along with stronger demand for muzzle reference systems and binocular products, contributed to revenue growth in the Optex-Richardson segment.
3. International Expansion and New Defense Platform Wins: Optex Systems aims to expand its presence in international markets, including Europe and the Middle East, through ITAR registration and partnerships. Furthermore, potential wins on new defense platforms are expected to contribute to future revenue. The company has secured new contracts, including a $2.8 million award for XM30 and a $10.2 million five-year optical sighting system contract.
4. Improved Contract Terms and Pricing: Optex Systems anticipates that its gross margins will strengthen as older, less favorably priced contracts conclude and are replaced with new contracts that incorporate more favorable terms and pricing. This shift towards higher-margin programs is expected to contribute to sustained revenue growth.

Share Repurchases

• On February 9, 2026, Optex Systems approved a new stock repurchase program authorizing the company to purchase up to $10 million of its outstanding common stock, replacing an existing program.
• On September 22, 2021, Optex Systems authorized a $1.0 million stock repurchase program.
• In April 2021, the company completed a previous stock buyback program, initiated in June 2020, through which it repurchased 519,266 shares.

Share Issuance

• The number of shares outstanding for Optex Systems increased by 0.78% in one year.

Outbound Investments

• Optex Systems is actively pursuing strategic acquisitions to strengthen its existing product line and expand its market presence, as of December 2025.

Capital Expenditures

• Optex Systems plans to spend $2.4 million in capital investment over fiscal year 2026 to expand capacity, develop new capabilities for adjacent markets, and replace obsolete equipment.
• During the three months ended December 28, 2025, the company invested $0.5 million in property and equipment and has committed an additional $0.5 million for purchases including a DLC coater and a prototype metal machining center.
• For the twelve months ended September 28, 2025, capital assets purchased totaled $0.5 million.