Marine tech firm Coda Octopus Q3 revenue rises on defense segment growth
CODA•Quarterly results
- US subsea imaging tech firm's fiscal Q3 revenue grew 9%, while core business revenue declined.
- Adjusted EPS for fiscal Q3 was $0.12, up from $0.11 last year.
- Company performance was supported by growth in defense engineering and acoustics segments.
What drove the quarter
- Geopolitical instability - The company said ongoing conflict involving Iran led to reduced procurement activity in the Middle East and Asia, hurting core Marine Technology business revenue.
- Defense demand - Strong growth in Defense Engineering Services was driven by increased demand for repairs, sustainment and spare parts supporting U.S. defense programs.
- Product orders and engagement - Orders for DAVD tethered systems and early customer engagement with Echoscope PIPE NANO Gen Series contributed to segment activity.
Outlook and demand trends
- Company sees robust demand in U.S. Defense Engineering Services, especially for repairs and sustainment.
- Company expects long-term growth from electronic warfare and next-generation defense programs.
- Geopolitical instability continues to affect Marine Technology business, especially in the Middle East and Asia.
