Universal Safety Products, Inc. reported a net loss of $999,780, or $0.43 per share, for the three months ended September 30, 2025, compared with a net income of $576,978, or $0.25 per share, for the same period last year. For the six months ended September 30, 2025, the company posted net income of $810,541, or $0.35 per share, versus $134,772, or $0.06 per share, for the corresponding 2024 period.
The quarterly loss was largely driven by a sharp decline in sales following the divestiture of the smoke and carbon monoxide alarm business and a significant increase in reserves for accounts receivable to cover potential customer deductions. Management noted that lower sales and higher reserves combined to erode profitability during the quarter.
The six‑month gain was largely attributable to the sale of the core alarm business to Feit Electric on May 22, 2025, which generated a one‑time gain that boosted net income. The transaction also increased cash reserves to $5,225,625 at September 30, 2025, up from $234,199 a year earlier, improving liquidity despite a drop in current assets.
CEO Harvey B. Grossblatt said the company’s “sales decreases in the three and six‑month periods were due to the sale of our smoke and carbon monoxide alarm business in May 2025.” He added that the “primary reason for the loss in the three‑month period was an increase to our reserves for accounts receivable to cover potential deductions from customers and substantially lower sales.” Grossblatt also highlighted that the company is “finalizing its plans for a new business segment.”
The divestiture marks a strategic pivot from a manufacturer of alarm products to a distributor of other safety and electrical devices. The company is actively developing a new business segment, though specific details and timelines remain under development. The sale of the alarm business and the focus on new growth areas signal a shift toward higher‑margin distribution and service offerings, positioning Universal Safety Products for a different competitive landscape.
Industry analysts note that the acquisition of Universal Security Instruments by Feit Electric reflects broader consolidation trends in the smart‑home and safety technology market. The transaction underscores the growing importance of integrated safety solutions and the shift toward diversified product portfolios in the sector.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.