BK Technologies Stock Jumps After Strong Q4 Earnings and Outlook

Shares of BK Technologies Corporation BKTI have gained 33.9% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 1.9% decline over the same time frame. Over the past month, the stock gained 36.6% against the S&P 500’s 4.3% decline. 

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Financial Performance

BK Technologies reported fourth-quarter 2024 revenues of $17.9 million, representing a 9.9% increase from $16.3 million in the same period last year. The company’s diluted GAAP earnings per share (EPS) surged to $0.93 from $0.08, a gain bolstered by a $0.37 one-time, non-cash income tax benefit. Excluding non-recurring items, non-GAAP adjusted diluted EPS rose to $0.61 from $0.20, an increase of 205% year over year.

For the full year, revenues reached $76.6 million, up 3.4% from $74.1 million in 2023. Full-year diluted GAAP EPS was $2.25 against a loss of $0.65 in the prior year, while non-GAAP adjusted EPS jumped to $2.30 from break-even in 2023.

Operating income in the fourth quarter rose to $2.2 million from $0.4 million in the prior-year quarter. Full-year operating income was $7.8 million against an operating loss of $0.8 million in the prior-year quarter.

Gross margins improved notably to 41.2% in the quarter from 35.1%, with a full-year gross margin of 37.9% compared with 30% in 2023.

Other Key Business Metrics

The company recorded its sixth consecutive quarter of profitability, underscoring improved operational consistency. Non-GAAP adjusted EBITDA for the quarter was $2.8 million, up 116.9% from $1.3 million a year ago, and full-year adjusted EBITDA rose to $10.4 million from $1.5 million. Selling, general and administrative (SG&A) expenses for the quarter were $5.2 million, down 3% from $5.3 million in the same period last year. BK Technologies exited 2024 with a backlog of $21.8 million compared with $16 million at the end of 2023, indicating healthy forward demand.

Working capital improved to $23 million from $16.8 million a year earlier, and the balance sheet strengthened with $7.1 million in cash and no long-term debt. Shareholders’ equity rose to $29.8 million from $21.3 million at the end of 2023.

Management Commentary

CEO John Suzuki characterized the fourth quarter as one of exceptional execution, citing growth in revenue, margin expansion, and profitability that exceeded expectations. He credited the success largely to strong market adoption of the BKR 9000 multiband radio, which has driven sales beyond the traditional wildland fire segment into state and local agencies seeking affordable multiband options. Management noted that only 35% of 2025 revenue is expected to come from federal agencies — down from 49% in 2023 — reflecting broader market penetration.

Suzuki also pointed to continued pricing power, noting the company implemented 5–10% price increases on radios and accessories in early 2025, which have been accepted by the federal government and are expected to be margin-accretive later in the year. While macroeconomic uncertainty and tariff risks persist, management has emphasized preparedness through flexible manufacturing arrangements and a focus on delivering shareholder value.

Factors Influencing the Headline Numbers

The shift in product mix toward the BKR 9000 contributed meaningfully to margin gains, supported by reduced manufacturing costs following the transition to contract manufacturer EastWest. The BKR 9000 is a premium, higher-margin product, with management previously targeting a 60% gross margin on the unit. Enhanced operational efficiencies and steady SG&A costs also contributed to the bottom-line expansion.

The $0.37 per share non-cash income tax benefit in the fourth quarter and $0.27 for the full year resulted from the reversal of a $3.6 million valuation allowance on deferred tax assets, further enhancing GAAP net income.

Guidance Provided by Management

Looking ahead to fiscal 2025, BKTI is targeting single-digit revenue growth with gross margins of at least 42%. The company expects GAAP diluted EPS to exceed $2.40 and non-GAAP adjusted EPS to surpass $2.80. Investments in sales and marketing will be ramped up to support the broader adoption of the BKR 9000 and R&D resources will be expanded to accelerate the development of software and hardware products under the newly launched BK ONE brand.

Other Developments

In March 2025, BK Technologies announced the rebranding and expansion of its SaaS business under the BK ONE Solutions unit, which now includes InteropONE (push-to-talk over broadband), LocateONE (GPS-based asset tracking) and RelayONE (portable repeaters for interoperability). Management expects these offerings to enhance first-responder communications and generate incremental high-margin revenue.

Additionally, development is underway for the BKR 9500 mobile radio, which is slated for market entry in 2027.

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This article originally published on Zacks Investment Research (zacks.com).

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