BK Technologies Q3 revenue rises on strong federal demand

Overview

• US public safety radio maker's fiscal Q3 revenue rose 3.6% yr/yr, driven by federal demand

• Company doubled share repurchase authorization to $10 mln, with $8.4 mln available

• Partial roof collapse after quarter-end disrupted production; shipment delays expected to resolve in 2027

Outlook

• Company updates 2026 revenue outlook to approximately $85 mln due to shipment delays

• BK Technologies expects 2026 GAAP diluted EPS of $2.40 and non-GAAP adjusted diluted EPS of $3.15

• Company reaffirms 2026 gross margin target of at least 50%

Result Drivers

• FEDERAL DEMAND - Co said strong federal order activity, particularly from the U.S. Forest Service, drove Q3 revenue growth

• PRODUCT MIX - Gross margin improvement was attributed to favorable product mix and continued customer adoption of BKR 9000 and BKR 5000 radios

• HIGHER EXPENSES - Increase in selling, general and administrative expenses was mainly due to planned hardware investments and advances in software ecosystem

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the communications & networking peer group is "buy"

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• Nov 10 - Actelis Networks Q3 revenue rises on higher federal orders; net loss narrows

• Nov 10 - Clearfield Inc Q4 revenue slips on broadband weakness

• Nov 12 - Canada's Vecima Networks Q1 revenue jumps 38% on broadband demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)