Coda Octopus Group (CODA) Q4 2025 earnings summary

Executive summary

• Fiscal year 2025 consolidated net revenue increased by 30.7% year-over-year, driven by growth in all business segments and the addition of the Acoustic Sensors and Materials business.

• Precision Acoustics Limited (PAL) acquisition contributed 20.4% to consolidated net revenue, delivered robust full-year performance, and met earn-out targets.

• Marine technology remains the core business, generating 49.8% of consolidated net revenue, with a strategic focus on expanding defense sector sales.

• Key technology launches included the NanoGen series of compact 3D sonars and successful completion of the DAVD untethered system hardening program.

• Product launches and contract wins, especially in DAVD and Echoscope lines, drove growth and market expansion.

Financial highlights

• Total revenue reached $26.6 million, up from $20.3 million in fiscal year 2024 (30.7% increase).

• Gross profit was $17.7 million (66.5% margin), down from 69.8% margin last year due to lower margin from new business and sales mix.

• Operating income rose to $4.5 million (17.1% margin), up 26.6% year-over-year.

• Net income after taxes was $4.1 million, or $0.37 per diluted share, compared to $3.6 million or $0.32 per share in 2024.

• Cash and cash equivalents increased to $28.7 million with no debt as of October 31, 2025.

Outlook and guidance

• Fiscal year 2026 expected to see broader adoption of DAVD, especially outside the U.S., and initial deliveries for new defense programs.

• DAVD revenue anticipated to exceed $3.7 million in 2026, but timing is dependent on U.S. Navy approval and budget allocations.

• Continued investment in DAVD and Echoscope technologies, with focus on integration into defense and commercial diving systems.

• Targeting increased market share in the Defense Underwater Vehicles sector, especially as the market shifts to AI-enabled autonomous platforms.

• Ongoing M&A strategy to expand capabilities and market reach.