In the world of defense technology, where tanks and armored vehicles need eyes to see in the dark and through dangerous conditions, Optex Systems has carved out a remarkably specific corner of the market. The company controls an impressive 95% of the armored vehicle optics market, which means almost every military vehicle that needs specialized vision equipment gets it from them. This isn’t luck—it’s the result of focusing on one thing and doing it exceptionally well.
Optex Systems makes precision optical sighting systems, thermal imaging cameras, and laser-protected periscopes specifically for military use. Think of these products as super-advanced binoculars that can see through smoke, spot enemies at night, and protect soldiers from laser attacks. Their product lineup includes items with names like M17 day/thermal periscopes and M36 thermal periscopes, which sound complicated but effectively help tank crews see clearly in any condition. The company operates in a $1 billion worldwide market and keeps gaining ground. Index construction methods often rely on market value-weighted approaches that mirror how such markets are assessed.
Advanced military vision systems that pierce through darkness, smoke, and combat conditions while defending against enemy laser threats.
What makes Optex Systems particularly interesting is how deeply embedded they are in the defense industry. About 90% of their revenue comes from military customers, including direct contracts with armed forces and partnerships with major defense contractors like General Dynamics Land Systems. Recent contract wins tell the story: $4.2 million in March 2025, $6.5 million in December 2024, and a notable $20 million opportunity for the M10 Booker Tank program.
The company runs two main facilities in Texas—Optex Systems Richardson and Applied Optics Center in Dallas—each contributing roughly half the revenue. They handle everything from initial designs to final production, maintaining strict quality standards required for military equipment. Their engineers specialize in electro-optical and infrared technologies, technical terms that basically mean they’re experts at making devices that see things human eyes cannot. The company also maintains ISO 9001:2015 certification, demonstrating its commitment to quality management systems that meet rigorous international standards. Beyond traditional ground systems, Optex Systems also designs EO/IR payloads for UAVs and both rotary- and fixed-wing aircraft, expanding their reach across multiple defense platforms.
This specialization creates a competitive advantage that’s hard to challenge. Competitors can’t easily replicate the deep knowledge and relationships Optex Systems has built over years. For a relatively small company in the vast defense industry, they’ve found their niche and dominated it completely.
