Optical Cable Q3 net sales up 22% to $24.3M, net income rises to $1.9M

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Optical Cable (OCC) Q3 2026 Earnings Call Transcript

Publication date: 2026-09-10 00:43:07

Source: Motley Fool Transcribing, The Motley Fool Date: Wed, September 9, 2026 at 5:43 PM PDT Read time: 24 min

• Stock performance: OCC +4.23%

Date

Wednesday, Sept. 9, 2026 at 11 a.m. ET

Call Participants

• Neil Wilkin – President and Chief Executive Officer
• Tracy Smith – Executive Vice President and Chief Financial Officer

Full Conference Call Transcript

Operator: Good morning, everyone. My name is Bo, and I will be your conference operator today. At this time, I would like to welcome you to Optical Cable Corporation's Third Quarter of Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] With that, Ms. Felix, you may begin your conference.

Caroline Felix: Good morning, and thank you for joining us for Optical Cable Corporation's Third Quarter of Fiscal Year 2026 Conference Call. By this time, everyone should have a copy of the earnings press release issued earlier today. You can also visit www.occfiber.com for a copy.

On the call with us today are Neil Wilkin, President and Chief Executive Officer of OCC; and Tracy Smith, Executive Vice President and Chief Financial Officer.

Before we begin, I'd like to remind everyone that this call may contain forward-looking statements that involve risks and uncertainties. The actual future results of Optical Cable Corporation may differ materially due to a number of factors and risks, including, but not limited to, those factors referenced in the forward-looking statements section of this morning's press release. These cautionary statements apply to the contents of the Internet webcast on www.occfiber.com, as well as today's call.

With that, I'll turn the call over to Neil Wilkin. Neil, please begin.

Neil Wilkin: Thank you, Caroline, and good morning, everyone.

I will begin the call today with a few opening remarks. Tracy will then review the third quarter results for the 3-month and 9-month periods ended July 31, 2026, in some additional detail. After Tracy's remarks, we will answer as many of your questions as we can.

As is our normal practice, we will only take live questions from analysts and institutional investors during the Q&A session. However, we also offer other shareholders the opportunity to submit questions in advance of our earnings call. Instructions regarding such submissions are included in our press release announcing the date and time of our call.

I will say that today, we got more questions than we typically would get on a quarter from individual investors. We'll answer as many of those as we can. And then when we get to the Q&A for institutional investors, please limit your questions to things that were not addressed by the questions from the individual shareholders, and we'll be limiting the questions we'll take from institutional investors to one question per person.

With that, we'll begin.

Following a solid start to the year, we continued to build on OCC's strong growth and momentum during the third quarter of fiscal year 2026, delivering year-over-year increases of net sales, gross profit and net income.

Key highlights from Q3 2026:

• Net sales increased 22% to $24.3 million
• Gross profit increased 43.9% to $9.1 million
• Net sales growth was largely driven by strong demand in OCC's enterprise, data center, and specialty markets
• Strong gross profit results continue to demonstrate the benefit of OCC's manufacturing operating leverage — as production volumes increase, fixed manufacturing costs are spread over higher sales volumes and manufacturing efficiencies tend to increase
• As of the end of the third quarter, sales order backlog and forward load stood at $13.5 million

We are now in the last quarter of our fiscal year, and we are confident in OCC's ability to build on our momentum and capitalize on the opportunities ahead. At the same time, we continue to explore opportunities to further strengthen OCC's capabilities and support long-term growth.

As always, we remain focused on delivering exceptional service to our customers and end users and driving sustainable value creation for our shareholders.

With that, I'll turn the call over to Tracy, who will review in additional detail our third quarter of fiscal year 2026 financial results.

Tracy Smith: Thank you, Neil.

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