Q4 2025 OSI Systems Inc Earnings Call Transcript
Key Points
- OSI Systems Inc (OSIS) reported a 5% year-over-year revenue increase in Q4, driven by a 28% increase in Security division service revenues and a 10% increase in Optoelectronics division revenues.
- The company achieved record Q4 non-GAAP adjusted earnings per share of $3.24, the highest in its history.
- OSI Systems Inc (OSIS) finished the year with a record year-end backlog of over $1.8 billion, providing excellent visibility into the new fiscal year.
- The Security division experienced a 7.1% year-over-year revenue increase in Q4, with full-year revenues surging 14.7%, driven by demand from airport and international border security customers.
- The Optoelectronics division set a Q4 record with $113 million in revenues, indicating strong performance and expected continued strength in fiscal '26.
- The Healthcare division's financial performance was disappointing in the quarter, impacting the consolidated growth rate.
- Revenues from large Mexico security contracts decreased significantly in Q4 '25, from $145 million in the prior year to $40 million.
- Operating cash flow in Q4 was lower than anticipated due to delayed payments from a major security division customer in Mexico.
- The adjusted operating margin of the Healthcare division was negligible in Q4, indicating challenges in this segment.
- Accounts receivable balance increased to approximately $837 million as of June 30, largely due to delayed collections from Mexico.
Thank you for standing by, and welcome to the OSI Systems fourth-quarter 2025 conference call.
(Operator Instructions)
As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Alan Edrick, Executive Vice President, Chief Financial Officer. Please go ahead.
Good morning, and thank you for joining us. I'm Alan Edrick, Executive Vice President and CFO of OSI Systems, and I'm here today with Ajay Mehra, OSI's President and CEO. Welcome to the OSI Systems fiscal '25 fourth-quarter and year-end conference call. We are pleased that you can join us as we review our financial and our operational results.
Earlier today, we issued a press release announcing our fiscal '25 fourth quarter and full year financial results. Before we discuss these results, I'd like to remind everyone that today's discussion will include forward-looking statements, and the company wishes to take advantage of the safe harbor
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