OSIS

OSIS is mislabeled by SIC as a semiconductor name but the 10-K MD&A makes clear it is a vertically integrated specialty systems business with three segments: Security (70% of FY2025 revenue), Optoelectronics & Manufacturing (20%), and Healthcare (10%). That mix — homeland security screening, defense/aerospace electronics, and hospital patient monitoring — is structurally less cyclical than the semis bucket implies, and FY2025 delivered $1.71B revenue (+11.3% YoY), operating income of $217.5M (+15% per MD&A), and diluted EPS of $8.71 (+18%). Growth is accelerating off a multi-year base ($1.15B → $1.18B → $1.28B → $1.54B → $1.71B), with net income compounding from $91.8M in FY2023 to $150M in FY2025 — operating leverage is real and net margin is expanding even as R&D rose 12.5% to $73.4M, signaling reinvestment rather than cost cuts driving the beat.

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