Optical Cable Q2 Sales Up 26.6% and Backlog Soars 27% to $13.3M
OCC•Optical Cable reported Q2 FY2026 net sales of $22.2M, up 26.6% YoY, and net income of $1.1M ($0.12/share) versus a loss last year. Q2 gross profit margin rose to 34.2%, and sales order backlog jumped 27% sequentially to $13.3M, driven by data center and enterprise demand.
1. Strong Q2 Financial Results
Optical Cable reported net sales of $22.2 million in Q2 FY2026, a 26.6% increase over the prior year, and achieved net income of $1.1 million ($0.12 per share) versus a net loss of $698,000 in Q2 FY2025. Gross profit margin expanded to 34.2%, up from 30.4%, reflecting higher volumes and improved manufacturing leverage.
2. Backlog Growth and Market Demand
Sales order backlog and forward load rose to $13.3 million at quarter-end, marking a 27% sequential increase and an 82% year-over-year jump, fueled by multi-tenant and enterprise data center projects as well as severe-duty markets. Growth in hyperscale data center build-outs has opened Tier 2 and enterprise opportunities, bolstering revenue visibility for the second half of fiscal 2026.
3. Capacity and Supply Chain Dynamics
Material cost inflation for optical fiber and copper presents margin headwinds, but price adjustments and a favorable product mix have mitigated impacts. Lead times have lengthened due to industry-wide fiber shortages, and the company is evaluating additional staffing and machine capacity to capitalize on sustained demand.
