Coda Octopus Group Q2 Earnings Call Highlights

Coda Octopus Group (NASDAQ:CODA) reported higher nett and improved margins for its fiscal 2nd 4th contempt a flimsy diminution successful revenue, arsenic spot successful its defence engineering and acoustic sensors businesses helped offset weakness successful its halfway marine exertion segment.

The institution said full gross for the 4th ended April 30, 2026, was $6.9 million, down 1.6% from $7.0 cardinal successful the aforesaid 4th past year. Net income roseate to $1.7 million, oregon $0.15 per diluted share, compared with $0.9 million, oregon $0.08 per diluted share, a twelvemonth earlier.

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Chair and CEO Annmarie Gayle said the institution delivered "a coagulated acceptable of results" with gains successful gross nett margins, nett income and net per share, adjacent arsenic gross slipped. She attributed the gross unit chiefly to geopolitical instability tied to Iran and the Middle East, which the institution said softened request from customers successful the portion and parts of Asia.

Marine Technology Revenue Falls, but Margins Improve

Coda Octopus' Marine Technology concern remained its largest segment, accounting for 41.1% of consolidated nett gross successful the quarter. Revenue successful the conception fell 26.8% to $2.8 cardinal from $3.9 cardinal a twelvemonth earlier.

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Gayle said the concern was affected by reduced lawsuit enactment successful the Middle East and Asia, including disruptions to commercialized operations related to the Strait of Hormuz. Hardware income successful the conception declined 46.9% to $1.8 cardinal from $3.3 cardinal successful the prior-year period.

However, rental gross accrued sharply, rising 351.1% to astir $0.7 cardinal from astir $0.2 million. Interim CFO Gayle Jardine said that displacement contributed to a higher gross borderline successful the Marine Technology business, which roseate to 77.0% from 67.7% a twelvemonth earlier. The institution besides cited a 68.7%, oregon $0.3 million, simplification successful committee expenses due to the fact that of less instrumentality income done agents successful Asia.

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Gayle said the weakness successful the affected markets was "not structural" and described it arsenic a timing contented during the question-and-answer information of the call. She said immoderate offshore projects, including successful the UAE, were connected clasp due to the fact that of information concerns and that the institution believes they could resume swiftly if determination unit eases.

Defense Engineering and Acoustic Sensors Grow

The Defense Engineering Services concern generated gross of $2.5 million, up 37.9% from $1.8 cardinal a twelvemonth earlier. Gayle said the U.K. limb of the concern saw accrued opportunities and higher gross during the quarter. In the U.S., she said galore defence programs continued to run nether continuing resolutions, which delayed declaration awards and the timing of revenue.