Omega Flex earnings fell in the third quarter of 2026 even as sales rose, with higher material costs and marketing spending weighing on profit. The flexible piping company reported net income of $2.359 million, down 36.0% from $3.688 million a year earlier.

Omega Flex earnings and sales

Net sales for the three months ended September 30 rose 6.0% to $25.697 million from $24.234 million in the same period of 2025. Basic and diluted earnings per share fell to $0.23 from $0.37.

For the first nine months of 2026, sales declined 0.3% to $72.847 million. Net income fell 37.7% to $7.111 million from $11.412 million in the comparable period.

Costs associated with new fitting

Omega Flex attributed the profit decline mainly to higher raw material costs, including inbound transportation and tariffs, as well as marketing efforts. Lower product liability reserves and expenses partly offset those increases.

The company said some of the higher costs were attributable to inventory procurement and the introduction of a re-engineered flexible gas piping fitting on July 1, 2026. It expects those costs to continue as it builds inventory and markets the fitting, but believes they will be limited in duration and normalize over time.

TracPipe system and investment

Omega Flex says its TracPipe flexible gas piping system is used in natural gas and propane installations, including residential and commercial buildings. The company says the new fitting is designed for a broader range of residential and commercial construction applications.

Omega Flex is also investing in equipment and facilities intended to expand capacity, improve operational efficiency and support geographic growth.

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