OSI Systems Talks $900M Mexico Backlog, U.S. Border Tailwinds and FCF Inflection at Conference

OSI Systems (NASDAQ:OSIS) outlined its concern mix, near-term maturation drivers, and borderline and currency travel expectations during a league treatment featuring Chief Financial Officer Alan. The institution described a portfolio built astir 3 divisions—Security, Optoelectronics, and Healthcare—with Security representing the largest stock of gross and nett and progressively supported by recurring work revenue.

Management described OSI Systems arsenic operating across:

• Security, the largest part astatine “over two-thirds” of gross and a higher percent of profit, focused connected information detection for cargo and conveyance inspection astatine ports and borders arsenic good arsenic aviation screening nether the Rapiscan brand.

• Optoelectronics, astir a 4th of revenue, which produces sensors, detectors, and physics components sold to OEM customers crossed aerospace and defense, industrial, automotive, technology, and aesculapian markets. The portion besides supplies components utilized successful OSI’s Security and Healthcare products, which the CFO said supports borderline and proviso concatenation power done vertical integration.

• Healthcare, little than 10% of revenue, selling diligent monitoring and cardiology instrumentality chiefly to mean and ample hospitals. About fractional of the Healthcare concern is recurring gross successful nature, the CFO said.

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OSI said caller Security maturation has been driven heavy by planetary business—particularly Mexico—where the institution received 3 contracts totaling astir $900 cardinal with the Mexican Army and Navy. Those contracts generated important gross successful fiscal 2024 and fiscal 2025, and the CFO said that contempt backlog conversion to revenue, bookings person remained beardown capable that backlog has “generally been increasing” implicit that period.