Electro-Sensors, Inc. announced strong financial results for the second quarter ended June 30, 2025, with net sales increasing by 8.3% to $2,400,000 from $2,217,000 in the prior-year quarter. This growth contributed to a 4.0% increase in net sales for the first six months of 2025, reaching $4,639,000 compared to $4,461,000 in the comparable prior-year period.
A significant highlight was the expansion of gross margin to 51.2% in Q2 2025, up 400 basis points from 47.2% in Q2 2024. This improvement was primarily due to an increase in average selling prices for specific items, implemented to partially offset increased material costs. The company's president, David L. Klenk, noted the refinement of their pricing strategy as a key factor.
The company substantially reduced its operating loss to $2,000 in Q2 2025, a 98.1% improvement from an operating loss of $107,000 in Q2 2024. Electro-Sensors also reported income before income taxes of $80,000, a significant increase from $2,000 in the prior-year quarter. Diluted earnings per share for Q2 2025 were $0.02, up from $0.00 in Q2 2024.
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