BK Technologies Cuts 2026 Outlook After Roof Collapse

The Tip Desk · November 12, 2026 · 3 min read

The company now sees about $85 million in 2026 revenue after a partial roof collapse delayed BKR 9000 shipments, down from a prior $90 million target.

BK Technologies Corporation (BKTI), a maker of public safety communications equipment, lowered its full-year 2026 revenue outlook to about $85 million after a partial roof collapse at its West Melbourne headquarters on October 8 temporarily disrupted production of BKR 9000 radios.

The company said affected shipments are expected to move into 2027 as production returns to normal levels in the first quarter, and that the resulting delays are a matter of timing rather than lost business. It also updated GAAP diluted earnings guidance to $2.40 a share and non-GAAP adjusted diluted EPS to $3.15, while reaffirming a gross margin target of at least 50%. Those figures exclude potential recoveries under business interruption insurance and potential refunds of previously paid tariffs. The prior full-year target, restated in the second-quarter release, was $90 million in revenue.

Third-quarter revenue set a record for the period. Revenue rose 3.6% to $25.3 million from $24.4 million in the third quarter of 2025, which the company attributed to federal order activity, particularly the U.S. Forest Service taking delivery of 3,000 BKR 5000 Orange radios developed as a variant for that customer. Chief executive John Suzuki said federal demand was a key growth driver.

Gross margin expanded to 50.7% from 49.9% a year earlier, a gain of more than 70 basis points that the company tied to favorable product mix and continued adoption of the BKR 9000 multiband radio and BKR 5000 single-band unit. Net income increased 9% to $3.7 million, or $0.93 a share on a diluted basis, from $3.4 million, or $0.87 a share, outpacing revenue growth on strong performance and a lower income tax rate.

Operating income declined to $4.4 million from $4.8 million a year earlier, and operating margin fell to 17.5% from 19.8%, which the company said was impacted primarily by higher engineering expenses. Selling, general and administrative expenses rose to $8.4 million from $7.3 million, primarily from planned hardware investments in the BKR 9500 in-vehicle multiband radio and continued work on the BK ONE software ecosystem. Non-GAAP adjusted earnings were $4.7 million, or $1.16 a share diluted, compared with $4.9 million, or $1.24 a share, a year earlier. Non-GAAP adjusted EBITDA was $5.2 million, with a 20.5% margin versus 21.5%.

Cash and cash equivalents were $29.2 million as of September 30, 2026, with no debt. Working capital was $48.8 million. Cash, cash equivalents and trade receivables totaled $46.5 million, about 95% of working capital. Trailing-twelve-month free cash flow after tax reached $18.9 million, a 25% year-over-year increase.

The company invested $3.0 million in a convertible note in Tango Tango to broaden exposure to mission-critical software and create a commercial channel for BK radios around InteropONE. The board doubled the authorized share repurchase program to $10 million, with about $8.4 million available. A new El Paso distribution center operated with East West Manufacturing came online and began customer shipments during the quarter.

Development of the BKR 9500 in-vehicle multiband radio continued, with field validation on live customer systems, FCC certification expected by year-end, and mass production on track for March 2027. Suzuki said the company remains confident in its ability to restore normal operations and fulfill customer commitments.