Executive Summary
IEH Corporation (IEHC) delivered a modest top-line expansion in QQ3 2025 with revenue of 7,217,616 (USD thousands as reported) and gross profit of 1,648,149, yielding a gross margin of 22.8%. The quarter captured a strong gross base but was marked by operating and net losses of 130,086 and 61,640, respectively, reflecting elevated operating costs and non-operating items that offset the gross profits. A key offset to the profitability challenge is the company’s solid liquidity—net cash position after debt considerations is substantial, with cash and equivalents reported at 9,041,167 and total equity of 22,643,708,000 (presented in the report’s USD units). Operational cash flow was positive at 525,790, contributing to a free cash flow of 453,552 for QQ3 2025. Management commentary in the absence of an earnings transcript suggests a focus on sustaining strength in core interconnects while balancing ongoing investment needs. Investors should weigh the favorable cash position and asset-light profitability risks, along with the potential for margin improvement as product mix shifts and defense/aerospace demand cycles evolve. The quarter underscores a duality: meaningful revenue progression vs. persistent near-term profitability headwinds, with an emphasis on liquidity and capital structure as competitive advantages.
Key Performance Indicators
QoQ: -99.90% | YoY:41.31%
QoQ: -99.90% | YoY:301.20%
QoQ: -100.08% | YoY:86.58%
QoQ: -125.01% | YoY:93.34%
QoQ: -130.00% | YoY:92.31%
Key Insights
Revenue: 7,217,616; YoY: 41.31%; QoQ: -99.90%
Gross Profit: 1,648,149; Gross Margin: 22.83%; YoY: 301.20%; QoQ: -99.90%
Operating Income: -130,086; Operating Margin: -1.80%; YoY: 86.58%; QoQ: -100.08%
Net Income: -61,640; Net Margin: -0.85%; YoY: 93.34%; QoQ: -125.01%
EPS: -0.03; Weighted Avg Shs: 2,380,251; YoY EPS: 92.31%; QoQ: -130.00%
EBITDA: 121,874; EBITDA Margin: 1.69%
Cash from Ops: 525,790; Free Cash Flow: 453,552
Cash at End: 9,041,167; Total Assets: 27,170,235; Total Liabilities: 4,52...
Financial Highlights
Revenue: 7,217,616; YoY: 41.31%; QoQ: -99.90%
Gross Profit: 1,648,149; Gross Margin: 22.83%; YoY: 301.20%; QoQ: -99.90%
Operating Income: -130,086; Operating Margin: -1.80%; YoY: 86.58%; QoQ: -100.08%
Net Income: -61,640; Net Margin: -0.85%; YoY: 93.34%; QoQ: -125.01%
EPS: -0.03; Weighted Avg Shs: 2,380,251; YoY EPS: 92.31%; QoQ: -130.00%
EBITDA: 121,874; EBITDA Margin: 1.69%
Cash from Ops: 525,790; Free Cash Flow: 453,552
Cash at End: 9,041,167; Total Assets: 27,170,235; Total Liabilities: 4,526,527; Total Equity: 22,643,708
Net Debt: -6,712,014; Debt/Equity: 0.10; Current Ratio: 8.55; Quick Ratio: 5.60
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.22M |
41.31% |
-99.90% |
| Gross Profit |
1.65M |
301.20% |
-99.90% |
| Operating Income |
-130.09K |
86.58% |
-100.08% |
| Net Income |
-61.64K |
93.34% |
-125.01% |
| EPS |
-0.03 |
92.31% |
-130.00% |
Key Financial Ratios
operatingProfitMargin
-1.8%
operatingCashFlowPerShare
$0.27
freeCashFlowPerShare
$0.19
priceEarningsRatio
-103.78
Management Commentary
Notes on transcript availability: The provided dataset does not include an earnings call transcript. As a result, management quotes and call-specific nuances could not be drawn from a verbatim source within QQ3 2025. Key insights are therefore inferred from the 10-Q/4Quarters data and related metrics:
- Gross margin remains in the low-20s range (about 22.8%), indicating a solid product gross base but consuming overhead and non-operating items.
- Operating and net profitability remain negative in QQ3 2025, underscoring ongoing cost-infrastructure or non-operating items that suppress earnings despite revenue progression.
- A robust liquidity position supports optionality for R&D investment, capacity for strategic partnerships, and potential shareholder-friendly actions if cash deployment becomes favorable. The absence of explicit forward guidance in the dataset necessitates a qualitative read of the company’s capital allocation posture and market opportunity.
Transcript data not available for QQ3 2025 in the provided dataset.
— Management
Transcript data not available for QQ3 2025 in the provided dataset.
— Management
Forward Guidance
No formal forward guidance was published in the provided QQ3 2025 data package. Given IEH’s strong liquidity and negligible net debt, the company has the runway to pursue selective investments in high-potential connector/interconnect product lines, process improvements, and defense/aerospace opportunities. Investors should monitor indicators that typically precede margin improvement: (1) revenue mix shifts toward higher-margin, mission-critical interconnects; (2) your gross margin trajectory toward mid-to-high 20s as turnkey assemblies and custom connectors scale; (3) control of operating expenses relative to top-line growth; and (4) stabilizing working capital and cash conversion cycles. In the absence of explicit guidance, scenario-based monitoring around defense demand cycles, government procurement schedules, and supplier pricing dynamics will be pivotal.