Omega Flex Sales Decline Widens After Housing-Starts Drag
Second-quarter net sales were $24.06 million, 5.8% below a year earlier, and net income fell 35.6% to $2.68 million.
Omega Flex, Inc. (OFLX), the Exton, Pennsylvania maker of flexible metal hose and gas piping products, reported that second-quarter net sales of $24.06 million were 5.8% lower than a year earlier, a steeper year-over-year drop than the 1.0% sales decline in the first quarter.
The sales decrease was mainly due to lower unit volumes as the overall market continued to be suppressed by, among other factors, a decline in housing starts, the same volume-driven explanation given for the first-quarter dip.
Net income attributable to Omega Flex was $2.68 million, or $0.27 a share, versus $4.16 million, or $0.41 a share, a year earlier. Weighted-average shares were 10,094,322.
The earnings squeeze was sharper than the sales decline. The company attributed the drop mainly to higher raw material costs, including inbound transportation and tariffs, marketing efforts, and product-enhancement and certification expenses. Those items accounted for about 54% of the three-month net-income decrease. Higher costs were partly offset by lower product liability reserves and expenses.
Those higher costs would continue as the company procures raw materials to reach targeted inventory levels and markets a new fitting, but the company believes the costs will be limited in duration and will normalize over time.
For the six months ended June 30, 2026, net sales were $47.15 million, down 3.5% from $48.86 million a year earlier. Net income for that six-month period was $4.75 million, or $0.47 a share, compared with $7.72 million, or $0.77 a share, in the year-earlier six months. About 30% of the six-month net-income decrease was due to the same raw-material, marketing, and product-enhancement costs.
On July 1, 2026, the company introduced a re-engineered TracPipe System flexible gas piping fitting designed to support a broader range of applications across residential and commercial construction. The fitting is designed to ease installation and, in the commercial sector, is particularly well suited for larger-diameter systems, including sizes up to two inches.
Omega Flex continues to make targeted investments in equipment and facilities intended to expand capacity, enhance operational efficiency, and support geographic growth by improving its ability to serve customers and distribution partners across existing and new markets.
In August 2026, MediTrac corrugated medical tubing, manufactured by subsidiary Flex-Trac, Inc., received CE mark certification under the European Union Medical Device Regulation as a Class IIa medical device. MediTrac CMT is patent protected, complies with NFPA 99 and Canadian Standard Z7396.1, and has been installed in healthcare facilities across 48 U.S. states, Canada, the United Kingdom, Southeast Asia, and other international markets. It is manufactured under an ISO 13485:2016-certified quality management system.
Chief Executive Officer Dean W. Rivest said the company is not aware of any other manufacturers of CMT and that MediTrac CMT has the potential to serve as a scalable growth platform that extends engineering expertise into new geographic regions and markets while leveraging established manufacturing and quality systems.
The second-quarter print left the company still on a volume-constrained footing in housing-related piping, with the year-over-year sales decline widening from the first quarter and earnings pressured by input costs, marketing, and certification work tied to the new fitting. Management’s view that those added costs are temporary, the July TracPipe launch, and the August CE mark for MediTrac CMT are the forward markers the company put in front of investors as it continues to invest in capacity and product lines beyond the suppressed housing market.