Electro-Sensors, Inc. Announces Third Quarter 2025 Financial Results

Rhea-AI Summary

Electro-Sensors (NASDAQ: ELSE) reported third quarter 2025 results for the period ended September 30, 2025. Record quarterly revenue of $2,748,000 represented an increase from $2,512,000 a year earlier. Gross margin rose to 53.1%, up 270 basis points versus Q3 2024. Net income was $208,000 and diluted EPS was $0.06 for the quarter. Cash and investments totaled approximately $10.6 million. The company cited stronger industrial automation distribution and higher OEM sales as drivers.

Detailed financial tables and nine-month results are included in the release.

Positive

• Record quarterly revenue of $2.748M
• Gross margin improved 270 bps to 53.1%

Negative

• Quarterly net income decreased to $208K (from $238K)
• Diluted EPS declined 14.3% to $0.06

Insights

Financial analyst

Record quarterly revenue and wider gross margin offset lower net income and diluted EPS; results are mixed for stakeholders.

Electro-Sensors, Inc. delivered $2,748,000 in third-quarter sales, a 9.4% increase year-over-year, and reported a gross margin of 53.1%, up from 50.4%. Cash and investments stood at approximately $10.6 million, and current assets rose to $14,440 thousand at September 30, 2025. These facts show clear top-line growth and stronger margin management.

However, net income fell to $208,000 from $238,000 and diluted earnings per share declined from $0.07 to $0.06. Operating income rose modestly to $181,000 while operating margin compressed by 0.3%. The combination of higher operating expenses and a lower non-operating income contribution led to a smaller bottom line despite revenue gains.

Watch sequential quarterly updates and the Company’s Form 10-Q for details on operating expense drivers, non-operating income composition, and quarterly sales mix over the next several quarters. Given the mixed signals — record revenue and margin expansion but lower net income and EPS — the near-term impact reads as neutral until follow-up filings clarify sustainability.

MINNETONKA, Minn., Nov. 13, 2025 /PRNewswire/ -- Electro-Sensors, Inc. (NASDAQ: ELSE), a leading global provider of machine monitoring sensors and hazard monitoring systems, today announced financial results for the third quarter ended September 30, 2025.

• Record quarterly revenue of $2,748,000, up 9.4% from the prior-year period
• Gross margin of 53.1%
• Cash and investments of approximately $10.6 million

Selected Financial Information (unaudited, in thousands, except per share data)

	Q3 2025				Q3 2024			Change
Net Sales		$	2,748		$	2,512		9.4	%
Gross Margin			53.1	%		50.4	%	270	bps
Operating Income		$	181		$	173		4.6	%
Operating Income Margin			6.6	%		6.9	%	(30)	bps
Income Before Income Taxes		$	272		$	290		(6.2)	%
Earnings Per Share (diluted)		$	0.06		$	0.07		(14.3)	%

Net sales in the third quarter increased 9.4% to $2,748,000 from $2,512,000 in the prior-year quarter.  For the first nine months of 2025, net sales increased 5.9% to $7,387,000 from $6,973,000 in the comparable prior-year period.  Gross margin for the 2025 third quarter was 53.1%, up from 50.4% in the corresponding quarter in 2024.

"We are pleased to report record quarterly revenue during the 2025 third quarter, driven by improved sales through our industrial automation distribution channels and higher OEM sales," said David L. Klenk, Electro-Sensors' president.  "Furthermore, gross margin increased during the quarter as we continue to carefully manage our supply chain, while also benefiting from sales price adjustments implemented earlier in the year."

A full analysis of results for the period ended September 30, 2025 is available in the Company's Form 10-Q, which is available on the Company's website at www.electro-sensors.com or through the Securities and Exchange Commission's Edgar database at www.sec.gov.

 

Electro-Sensors, Inc. Statements of Income For the Three and Nine Months Ended September 30, 2025 and 2024 (unaudited) (in thousands except share and per share amounts)
	Three Months Ended September 30,
	2025			2024
Sales	$	2,748		$	2,512
Cost of goods sold		1,290			1,247
Gross profit		1,458			1,265
Operating expenses		1,277			1,092
Operating income		181			173
Non-operating income, net		91			117
Income before income taxes		272			290
Provision for income taxes		64			52
Net income	$	208		$	238
Earnings per share – diluted	$	0.06		$	0.07
Average shares outstanding - diluted		3,473,921			3,434,417

 

	Nine Months Ended September 30,
	2025			2024
Sales	$	7,387		$	6,973
Cost of goods sold		3,617			3,581
Gross profit		3,770			3,392
Operating expenses		3,760			3,426
Operating income (loss)		10			(34)
Non-operating income, net		261			342
Income before income taxes		271			308
Provision for income taxes		68			63
Net income	$	203		$	245
Earnings per share – diluted	$	0.06		$	0.07
Average shares outstanding - diluted		3,453,585			3,440,382

 

Electro-Sensors, Inc. Balance Sheets September 30, 2025 and December 31, 2024 (in thousands)
	September 30,			December 31,
	2025			2024
Assets	(unaudited)
Current Assets
Cash and investments	$	10,627		$	10,004
Trade receivables, net		1,425			1,309
Inventories		2,070			1,964
Other current assets		318			197
Total current assets		14,440			13,474
Deferred income tax asset, long-term		437			501
Property and equipment, net		860			910
Total assets	$	15,737		$	14,885
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable and accrued expenses	$	1,049		$	552
Total current liabilities		1,049			552
Stockholders' equity
Common stock		348			344
Additional paid-in capital		2,508			2,360
Retained earnings		11,832			11,629
Total stockholders' equity		14,688			14,333
Total liabilities and stockholders' equity	$	15,737		$	14,885

 

About Electro-Sensors

Electro-Sensors, Inc. is an industry leading designer and manufacturer of rugged and reliable machine monitoring sensors and wireless/wired hazard monitoring systems applied across multiple industries and applications. These products improve processes by protecting people, safeguarding systems, reducing downtime, and preventing waste. Electro-Sensors is proud to be an ISO9001:2015 quality certified company and is committed to providing excellent customer service and technical support. Founded in 1968 and located in Minnetonka, Minnesota, Electro-Sensors provides its loyal customers with reliable products that improve safety and help plants operate with greater efficiency, productivity and control.

Cautionary Statement Regarding Forward Looking Statements

This press release may include statements about possible or anticipated future financial performance, business activities, plans, or opportunities.  These forward-looking statements may include the words "will," "should," "believes," "expects," "anticipates," "intends" or similar expressions.  For these forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws.  Forward-looking statements reflect the company's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact.  These forward-looking statements are subject to a number of factors, risks and uncertainties, including those disclosed in our periodic filings with the SEC that could cause actual performance, activities, plans, or opportunities after the date the statements are made to differ significantly from those indicated in the forward-looking statements.

For more information please visit our website at: www.electro-sensors.com. Also look us up on:
LinkedIn: linkedin.com/company/electro-sensors-inc-
X: x.com/ESIsensors
Facebook: facebook.com/ElectroSensors

View original content:https://www.prnewswire.com/news-releases/electro-sensors-inc-announces-third-quarter-2025-financial-results-302614989.html

SOURCE Electro-Sensors, Inc.

FAQ

What were Electro-Sensors (ELSE) Q3 2025 net sales and how do they compare year-over-year?

Q3 2025 net sales were $2,748,000, up 9.4% versus Q3 2024.

How did Electro-Sensors (ELSE) gross margin change in Q3 2025?

Gross margin rose to 53.1% in Q3 2025, an increase of 270 basis points from Q3 2024.

What were Electro-Sensors (ELSE) earnings and diluted EPS for Q3 2025?

Net income for Q3 2025 was $208,000 and diluted EPS was $0.06.

How much cash and investments did Electro-Sensors (ELSE) report at September 30, 2025?

The company reported approximately $10.6 million in cash and investments.

What drove Electro-Sensors (ELSE) record revenue in Q3 2025?

Management attributed record revenue to improved sales through industrial automation distribution channels and higher OEM sales.