LGL Group reported third‑quarter 2025 results for the period ended September 30, 2025, showing net income of $772,000 and earnings per share of $0.14, a jump from $72,000 and $0.01 in the same quarter of 2024. The increase in profitability is largely attributable to tighter manufacturing cost control and a favorable tax benefit that offset a 6.0% year‑over‑year decline in revenue, which fell to $1.108 million from $1.179 million in Q3 2024.
Gross margin climbed to 52.8 % from 43.4 % a year earlier, driven by a shift toward higher‑margin electronic instrument contracts and improved pricing power. The margin expansion helped offset the revenue decline and contributed to the sharp rise in net income.
Net investment income decreased, reflecting lower yields on U.S. Treasury money‑market holdings. While the company did not disclose the exact figures for the quarter, the decline in investment income was a partial offset to the increase in operating income.
The company’s backlog grew to $776,000 at the end of September 2025, up $440,000 from December 31 2024 and $271,000 from September 30 2024. The backlog expansion signals strong future revenue prospects and a healthy order pipeline for the core precision‑instrument business.
Working‑capital metrics show LGL holding $41.6 million in investments, with $25.4 million concentrated in its Merchant Investment business. Share repurchases of $366,000 were completed during the quarter, returning value to shareholders while maintaining a robust cash position.
Strategic initiatives continue with the commercialization of P3 Logistic Solutions’ edge‑computing platform and progress on the acquisition of a majority stake in Morgan Group Holding Co. The acquisition, agreed in April 2025 for $2.00 per share, is intended to broaden LGL’s capabilities in brokerage, underwriting, and institutional research services.
Management emphasized that the company’s dual‑focus strategy—maintaining a high‑margin manufacturing core while deploying capital through merchant investments—has delivered tangible financial results. The company remains confident in sustaining profitability amid the sensitivity of its merchant arm to interest‑rate movements.
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