Napco Security ( (NSSC) ) has released its Q3 earnings. Here is a breakdown of the information Napco Security presented to its investors.
NAPCO Security Technologies, Inc., headquartered in Amityville, New York, is a prominent manufacturer and designer of electronic security devices and wireless communication services for intrusion and fire alarm systems, as well as a provider of school safety solutions. The company operates through four divisions, including NAPCO and its three subsidiaries: Alarm Lock, Continental Instruments, and Marks USA.
In its fiscal 2025 third-quarter earnings report, NAPCO Security Technologies announced a decrease in net sales to $44.0 million, down 10.8% year-over-year. Despite this, the company saw a notable increase in recurring service revenue, which rose by 10.6% to $21.6 million. The company also reported a gross profit margin improvement to 57.2% from 53.8% in the previous year.
Key financial metrics from the report highlighted a decline in equipment sales by 24.8% to $22.4 million, while net income fell by 23.3% to $10.1 million. Diluted earnings per share decreased to $0.28 from $0.36. However, the company declared a quarterly dividend increase to $0.14 per share, reflecting confidence in its financial stability.
NAPCO introduced its new cloud-based MVP Access platform at the International Security Conference, which is expected to generate recurring revenue. The company is also addressing tariff challenges by increasing equipment prices and leveraging its manufacturing base in the Dominican Republic and the USA.
Looking ahead, NAPCO remains optimistic about its financial strength and product innovation, despite facing external challenges such as tariffs. The company aims to maintain its profitability and continue its dividend program, signaling a positive outlook for the remainder of fiscal 2025 and beyond.