Napco Security Reports Record Q1 Sales and Income

Napco Security ( (NSSC) ) has released its Q1 earnings. Here is a breakdown of the information Napco Security presented to its investors.

NAPCO Security Technologies, Inc. is a leading manufacturer of electronic security equipment and wireless communication devices, serving a diverse range of markets including intrusion and fire alarm systems, and school safety solutions. In its first quarter of fiscal 2025, Napco Security reported record net sales of $44.0 million, marking a 6% increase from the previous year. The company also achieved a record net income of $11.2 million, a 7% rise from the previous quarter, while its recurring service revenues surged by 22% to $21.1 million with an impressive gross margin of 91%. Despite a slight decline in adjusted EBITDA by 4% to $12.3 million, Napco’s financial health remains strong with $102.2 million in cash and no debt. The company’s board declared a quarterly dividend of $0.125 per share and authorized a stock repurchase program for up to 1,000,000 shares. Napco’s strategic focus on innovative product lines, such as the Prima all-in-one security panel, and the strong performance of its Starlink radio sales, particularly the Starlink Fire radio, are expected to bolster future recurring revenues. While equipment sales have faced challenges, the anticipated inventory adjustments by locking distributors are expected to enhance future sales and margins. The company’s solid financial footing, continued product innovation, and strong market position provide a promising outlook for the remainder of fiscal 2025.