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1. Company Snapshot

1.a. Company Description

BK Technologies Corporation, through its subsidiary, BK Technologies, Inc., engages in design, manufacture, and markets wireless communications products in the United States and internationally.The company offers two-way land mobile radios (LMR), repeaters, base stations, and related components and subsystems.Its BK Technologies, BKR, and BK Radio branded products include LMR equipment for professional radio users primarily in government, public safety, and military applications, as well as P-25 digital products; and RELM branded products provide two-way communications for commercial and industrial concerns, such as hotels, construction firms, schools, and transportation services.


The company was incorporated in 1997 and is headquartered in West Melbourne, Florida.

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1.b. Last Insights on BKTI

BK Technologies Corporation's recent performance was driven by strong Q1 2025 earnings and revenue growth, with revenue increasing to $19.1 million and gross margin expanding to 47.0%. The company's BKR 9000 multiband radio sales momentum continued, with robust sales and market acceptance. Additionally, the successful deployment of InteropONE and RelayONE technologies during the Colorado Fire and Aviation Summit validated the real-world performance of BK's mission-critical communications solutions. The company's strong profitability and revenue growth were also highlighted by its Q4 2024 results, which exceeded expectations in both growth and margins.

1.c. Company Highlights

2. BK Technologies' Q3 2025 Earnings: A Strong Performance

BK Technologies reported a robust third quarter 2025, with revenue growth of 21% to $24.4 million, driven primarily by federal customer orders, including a significant $12.9 million from the USDA Forest Service. The company's gross margin improved substantially to 49.9% compared to 38.8% in Q3 2024, attributed to a shift in product mix towards the higher-margin BKR 9000 multiband radio. Net income rose 46% to $3.4 million, or $0.87 per diluted share, while non-GAAP adjusted EPS was $1.27, surpassing analyst estimates of $0.7. The company's cash position was strengthened with $21.5 million in cash and cash equivalents and no debt.

Publication Date: Nov -23

📋 Highlights
  • Revenue Growth:: Q3 revenue rose 21% to $24.4M, driven by $12.9M in USDA Forest Service orders.
  • Gross Margin Expansion:: Improved to 49.9% (vs. 38.8% prior year) due to higher-margin BKR 9000 product mix.
  • Net Income & EPS:: Net income grew 46% to $3.4M ($0.87/share), with non-GAAP adjusted EPS at $1.27.
  • Strong Cash Position:: $21.5M in cash and cash equivalents with zero debt, supporting growth and resilience.
  • Product Line Growth:: BKR 9000 units expected to grow 2–3x in 2025, priced at ~$2,500/unit, driving margin expansion.

Operational Highlights

The company maintained its guidance for high single-digit revenue growth and full-year gross margin of 47% or greater. Management is confident in their targets and has a mitigation plan in place in case of a prolonged government shutdown, which includes redirecting shipments to state and local customers. The impact on revenue from the shutdown is mainly related to changing delivery slots, not a significant change in demand. The 9000 product line is expected to see 2-3x growth in units shipped in 2025 compared to 2024, with an average price of around $2,500 per unit.

Margin Expansion and Vision 2030

In Q3, the company achieved a significant step-up in margin to around 50%, despite having more lower-margin federal orders. This implies that the structural margin of the business is strong, and with more growth coming from higher-margin state and local orders, the company should be able to push margins well into the 50s. The goal of achieving 50% gross margin by 2025 has been met, and the company sees further margin expansion as part of its Vision 2030.

Valuation and Outlook

With a P/E Ratio of 18.04 and an EV/EBITDA of 14.09, the company's valuation appears reasonable considering its strong growth prospects. Analysts estimate next year's revenue growth at 11.3%. The company's ROIC of 32.27% and ROE of 37.07% indicate a high level of profitability. The Free Cash Flow Yield of 7.83% is also attractive, suggesting a potential upside in the stock.

Capital Allocation and M&A

The company plans to discuss its capital allocation and M&A strategy further in the March time frame as part of its Vision 2030. It expects to generate a significant amount of cash over the next five years and will provide a more thoughtful answer on its plans then.

3. NewsRoom

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BK Technologies Stock Gains on Strong Q3 Earnings, Margin Jump

Nov -11

Source: zacks.com

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BK Technologies to Attend 14th Annual ROTH Technology Conference

Nov -11

Source: accessnewswire.com

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BK Technologies Corporation (BKTI) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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BK Technologies Reports Third Quarter 2025 Revenue Increase of 21% to $24.4 Million; Net Income Increases 46% to $3.4 Million

Nov -06

Source: accessnewswire.com

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BK Technologies Stock Is Poised For Growth As Margins Expand

Oct -27

Source: seekingalpha.com

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BK Technologies to Host Third Quarter 2025 Conference Call on Thursday, November 6, 2025

Oct -23

Source: accessnewswire.com

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2 Small-Cap Emergency Response Stocks

Sep -05

Source: zacks.com

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BK Technologies To Attend Lake Street Capital Markets 9th Annual Best Ideas Growth Conference

Aug -27

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.00%)

6. Segments

Wireless Communications Equipment

Expected Growth: 15%

BK Technologies Corporation's 15% growth in Wireless Communications Equipment is driven by increasing demand for mission-critical communication systems, expansion in public safety and first responder markets, and advancements in LTE technology. Additionally, growing adoption of IoT devices and 5G networks fuels the need for reliable wireless communication equipment, contributing to the segment's growth.

7. Detailed Products

Land Mobile Radios

BK Technologies Corporation offers a range of land mobile radios designed for public safety, government, and commercial markets. These radios provide reliable and secure communication solutions for mission-critical applications.

Satellite Communications

The company provides satellite communication solutions for remote and harsh environments, enabling reliable and secure communication in areas with limited or no cellular coverage.

Interoperability Solutions

BK Technologies Corporation offers interoperability solutions that enable seamless communication between different radio systems, frequencies, and protocols.

Radio Frequency (RF) Amplifiers

The company designs and manufactures RF amplifiers for use in public safety, military, and commercial applications.

Customized Communication Solutions

BK Technologies Corporation provides customized communication solutions tailored to meet specific customer requirements.

8. BK Technologies Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

BK Technologies Corporation operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

BK Technologies Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

BK Technologies Corporation relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's long-term relationships with suppliers and its ability to negotiate prices mitigate this risk.

Threat Of New Entrants

The barriers to entry in BK Technologies Corporation's industry are relatively high, including significant capital expenditures and regulatory hurdles. This limits the threat of new entrants.

Intensity Of Rivalry

The industry in which BK Technologies Corporation operates is highly competitive, with several established players competing for market share. This intense rivalry puts pressure on the company to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.11%
Debt Cost 6.73%
Equity Weight 71.89%
Equity Cost 9.88%
WACC 9.00%
Leverage 39.10%

11. Quality Control: BK Technologies Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BK Technologies

A-Score: 5.1/10

Value: 2.4

Growth: 7.9

Quality: 8.1

Yield: 1.0

Momentum: 10.0

Volatility: 1.3

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KVH Industries

A-Score: 4.1/10

Value: 6.0

Growth: 1.9

Quality: 4.0

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

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Ondas

A-Score: 4.0/10

Value: 6.0

Growth: 4.8

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

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Optical Cable

A-Score: 3.9/10

Value: 6.2

Growth: 1.4

Quality: 4.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

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Infinera

A-Score: 3.7/10

Value: 5.4

Growth: 4.1

Quality: 2.9

Yield: 0.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Minim

A-Score: 3.6/10

Value: 6.2

Growth: 3.0

Quality: 4.7

Yield: 0.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.06$

Current Price

66.06$

Potential

-0.00%

Expected Cash-Flows