Omega Flex, Inc. reported first‑quarter 2026 revenue of $23.093 million, a decline of $237,000 or 1.0% from the $23.330 million earned in the same period last year. The company’s net income fell to $2.007 million, a drop of $1.491 million or 41.8% from $3.568 million in Q1 2025, and EPS slipped to $0.21 from $0.35 year‑ago.
Margin compression was the primary driver of the earnings decline. Net margin contracted from 15.3% in Q1 2025 to roughly 9.0% in Q1 2026 as raw‑material costs, tariffs, marketing spend and product‑enhancement and certification expenses rose sharply. The company’s operating income fell in line with the margin squeeze, reflecting the cumulative impact of higher input costs and ongoing capital expenditures.
CEO Dean W. Rivest said the company’s “net sales of $23,093,000 and $23,330,000, respectively, decreasing $237,000 or 1.0%. Net income for the first quarters of 2026 and 2025 were $2,007,000 and $3,568,000, respectively, decreasing $1,491,000 or 41.8%. The decrease in net income was mainly due to rising raw material costs, including tariffs, marketing efforts, and product enhancement and certification related expenses.” He added that the company continued to invest in equipment and facilities to expand capacity and support geographic growth while pursuing product enhancements to strengthen its market position beyond traditional markets.
The company declared a regular quarterly dividend of $0.34 per share for Q1 2026, payable on April 21, 2026. The dividend reflects the company’s commitment to returning value to shareholders while balancing the need for capital to fund growth initiatives.
Overall, the results highlight a short‑term margin squeeze driven by cost inflation and strategic investments, but also signal Omega Flex’s focus on expanding capacity and product capabilities to capture future demand in residential, commercial, and industrial markets.
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