Coda Octopus Q2 Net Income Up 86.8% with Navy DAVD Approval
CODA•Coda Octopus reported Q2 fiscal 2026 revenue of $6.9 million, declining 1.6% year-over-year, while net income surged 86.8% to $1.7 million and EPS rose to $0.15. Defense Engineering Services revenue jumped 37.9% to $2.5 million, gross margin rose to 66.3% and U.S. Navy approved its untethered DAVD system for fleet deployment.
1. Q2 Financial Highlights
Coda Octopus reported total revenue of $6.9 million in fiscal Q2 2026, down 1.6% year-over-year. Net income rose 86.8% to $1.7 million, driving EPS to $0.15, while operating income increased 64.8% to $1.8 million and pre-tax income reached $2.1 million.
2. Segment Revenue Breakdown
Core Marine Technology revenue fell 26.8% to $2.8 million due to reduced activity in the Middle East and Asia. Defense Engineering Services revenue jumped 37.9% to $2.5 million and Acoustics Sensors and Material revenue climbed 17.5% to $1.5 million, lifting gross margin to 66.3%.
3. U.S. Navy DAVD System Approval
The U.S. Navy completed its Approved Navy Use assessment for the untethered DAVD system in June 2026, clearing the 20 delivered units for fleet deployment. With R&D concluded, procurement is expected to accelerate in the second half of fiscal 2026 as commands acquire the system globally.
4. Echoscope PIPE NANO GEN Series Order
During Q2, Coda Octopus received its first order for Echoscope PIPE NANO GEN Series sonars, aimed at subsea and diver-wearable platforms. These power-efficient units deliver real-time 3D visualization and obstacle avoidance, positioning the Company for expansion into underwater robotics and defense markets.
