Executive Summary
IEH Corporation posted a strong year-over-year uptick in QQ1 2025 revenue and profits, signaling a positive turn in demand for its PCB connectors and custom interconnects. Revenue of $7.10 million rose 51.8% year over year, while gross profit reached $2.02 million for a gross margin of 28.46%. Operating income of $0.33 million and net income of $0.39 million translated into an approximate net margin of 5.53% and an EPS of $0.17 (GAAP) for the quarter. The company also generated solid operating cash flow of $1.19 million and free cash flow of $1.13 million, leaving IEHC with a strong balance sheet and a net cash position of about $4.64 million after accounting for debt (net debt negative). The liquidity metrics remain robust (current ratio ~8x, quick ratio ~4.9x, cash ratio ~2.6x), and cash at period-end stood at roughly $7.15 million.
However, management commentary is not included in the provided transcript data, and several line-item anomalies in the 1Q2025 segment data (notably an enormous “otherExpenses” and unusually high interest-related figures in some periods) warrant caution when assessing quarterly mechanics. Taken together, IEH’s QQ1 2025 results suggest improving top-line momentum and leaner cost structure, but investors should monitor working capital dynamics, any one-off charges, and the sustainability of margin expansion as the company scales.
Key Performance Indicators
QoQ: 90.71% | YoY:361.25%
QoQ: 198.85% | YoY:124.95%
QoQ: -7.72% | YoY:129.85%
QoQ: -5.56% | YoY:130.36%
Key Insights
Revenue: $7.105 million, up 51.8% YoY and 2.6% QoQ. Gross profit: $2.022 million, gross margin 28.46% (YoY margin expansion from prior year). Operating income: $0.333 million (operating margin 4.69%). Net income: $0.393 million (net margin 5.53%). EPS: $0.17 basic, $0.16 diluted (YoY EPS up ~130%, QoQ change -5.6%). EBITDA: $0.521 million with EBITDA margin ~7.34%. Free cash flow: ~$1.129 million. Cash and equivalents: $7.147 million. Net debt: negative $4.642 million (net cash position). Workin...
Financial Highlights
Revenue: $7.105 million, up 51.8% YoY and 2.6% QoQ. Gross profit: $2.022 million, gross margin 28.46% (YoY margin expansion from prior year). Operating income: $0.333 million (operating margin 4.69%). Net income: $0.393 million (net margin 5.53%). EPS: $0.17 basic, $0.16 diluted (YoY EPS up ~130%, QoQ change -5.6%). EBITDA: $0.521 million with EBITDA margin ~7.34%. Free cash flow: ~$1.129 million. Cash and equivalents: $7.147 million. Net debt: negative $4.642 million (net cash position). Working capital metrics indicate a long cash conversion cycle (CCC) of ~223 days driven by elevated inventory days (DIO ~149 days) and receivables (DSO ~74 days), offset by short payables (DPO ~11.8 days).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.10M |
51.82% |
2.58% |
| Gross Profit |
2.02M |
361.25% |
90.71% |
| Operating Income |
332.98K |
124.95% |
198.85% |
| Net Income |
392.79K |
129.85% |
-7.72% |
| EPS |
0.17 |
130.36% |
-5.56% |
Key Financial Ratios
operatingProfitMargin
4.69%
operatingCashFlowPerShare
$0.5
freeCashFlowPerShare
$0.48
Management Commentary
No earnings call transcript data were provided for QQ1 2025. Consequently, there are no management quotes available in the supplied dataset to extract thematic highlights (strategy, operations, market conditions). If you can provide the transcript or a link to the investor call, I will extract and organize quotes by theme with context and significance.
Forward Guidance
No formal forward guidance was included in the supplied data. Given the QQ1 2025 performance and the broader technology hardware market backdrop, IEH may reasonably be evaluated on the potential for: (i) continued revenue growth from aerospace/military and high-performance interconnect opportunities, (ii) margin stabilization toward mid- to high-20s gross margins as product mix shifts and scale improves, and (iii) ongoing free cash flow generation supported by modest capital expenditure. Investors should monitor: backlog and order flow, customer concentration in defense/aerospace, any reductions in working capital cycling, and the impact of potential one-off items on reported earnings. Absent explicit guidance, the stance is constructive but contingent on sustainable demand, pricing discipline, and supply chain reliability.