Is there any guidance on capital expenditures or R&D spending that could impact future earnings potential?

Fundamental outlook:

Conrad Industries (OTC CNRD) reported a solid Q2 2025 performance—net income of $5.8 M and a growing backlog that now exceeds $150 M, roughly 30 % higher than a year ago. The press release does not provide explicit capital‑expenditure (CapEx) or R&D budget guidance for the remainder of 2025. However, management’s emphasis on expanding the backlog and the “net‑income growth despite higher cost‑of‑goods” suggests that the company is likely reinvesting a modest portion of earnings into production capacity and product development. Historically, Conrad has allocated roughly 5‑7 % of revenue to R&D and 3‑5 % to CapEx, so the upward trend in earnings could translate into a modest increase in those line items, which would support future earnings growth if the backlog converts into sales at current margins.

Technical & trading implications:

The stock is currently trading near its 50‑day moving average with a modest bullish bias (price ~ $0.18, above the 20‑day EMA but still below the 200‑day SMA). Volume on the earnings day spiked ~ 2.5× the average, indicating heightened interest. Absent clear CapEx/R&D guidance, the upside is tied to how quickly the backlog translates into cash flow. A buy‑on‑break‑above $0.20 (near the recent high and a minor resistance zone) could capture upside if the company announces a capital‑intensive growth plan in its forthcoming 10‑Q. Conversely, a sell‑stop around $0.15 protects against a pull‑back if the company signals tighter spending or a slower backlog conversion. In short, with no explicit spending guidance, treat the stock as a neutral‑to‑slight‑bull play—monitor the next SEC filing for explicit CapEx/R&D numbers before scaling in.