Reports Q3 Net Sales Up 22.0%, Net Income Up to $1.9M

Optical Cable Corporation reported a significant increase in its third-quarter fiscal year 2026 financial results. Net sales climbed 22.0% to $24.3 million, up from $19.9 million in the same period last year. This growth was attributed to stronger demand in the company's enterprise, data center, and specialty markets, both domestically and internationally. Sales to U.S. customers rose by 20.3%, while international sales increased by 28.8% compared to the prior year.

The company's gross profit saw an even more substantial rise, increasing by 43.9% to $9.1 million from $6.3 million in the third quarter of fiscal year 2025. This improvement was driven by higher sales volumes and the positive effects of manufacturing operating leverage. Consequently, the gross profit margin expanded to 37.4%, up from 31.7% in the prior-year quarter.

Net income for the quarter reached $1.9 million, or $0.21 per diluted share, a notable increase from $302,000, or $0.04 per diluted share, in the third quarter of fiscal year 2025. Selling, general, and administrative (SG&A) expenses also increased to $7.0 million from $5.7 million, primarily due to higher employee costs, contracted sales personnel expenses, and shipping costs. However, SG&A expenses as a percentage of net sales remained relatively stable at 28.7%, compared to 28.8% in the previous year.

The company's sales order backlog and forward load continued to grow, reaching $13.5 million as of July 31, 2026. This is an increase from $13.3 million reported on April 30, 2026, and significantly higher than the $7.3 million recorded on October 31, 2025, indicating continued demand for OCC's products.