Coda Octopus Group Inc
NASDAQ:CODA
Coda Octopus Group Inc
Coda Octopus Group, Inc. engages in designing and manufacturing patented real time 3D sonar solutions. The company is headquartered in Orlando, Florida and currently employs 95 full-time employees. The firm operates through two segments: Marine Technology Business and Marine Engineering Business. Its Marine Technology Business segment designs, manufactures and sells and/or rents underwater solutions, products and services to the underwater commercial and defense markets. These products and solutions are used primarily in the underwater construction market, offshore wind energy industry and offshore oil and gas, complex dredging, port security, mining, fisheries and marine sciences sectors. Its Marine Engineering Business segment is a supplier of embedded solutions and sub-assemblies, which it designs and manufactures and sells into mission-critical integrated defense systems, such as the Close-In-Weapons System (CIWS).
Coda Octopus Group, Inc. engages in designing and manufacturing patented real time 3D sonar solutions. The company is headquartered in Orlando, Florida and currently employs 95 full-time employees. The firm operates through two segments: Marine Technology Business and Marine Engineering Business. Its Marine Technology Business segment designs, manufactures and sells and/or rents underwater solutions, products and services to the underwater commercial and defense markets. These products and solutions are used primarily in the underwater construction market, offshore wind energy industry and offshore oil and gas, complex dredging, port security, mining, fisheries and marine sciences sectors. Its Marine Engineering Business segment is a supplier of embedded solutions and sub-assemblies, which it designs and manufactures and sells into mission-critical integrated defense systems, such as the Close-In-Weapons System (CIWS).
Revenue Growth: Coda Octopus reported Q3 revenue of $7.1 million, up 29% from last year, driven by strength in its core Marine Technology business and the addition of Precision Acoustics.
Product Highlights: The Echoscope PIPE NANO GEN SERIES launched, with strong customer feedback on its compact size and integration potential for next-generation underwater vehicles.
DAVD Momentum: DAVD untethered systems were delivered to U.S. Special Forces and a foreign navy, with expectations for $4 million in DAVD-related revenue this fiscal year, up from $1.2 million last year.
Segment Performance: Marine Technology revenue grew 30.7%, while Marine Engineering revenue declined 33.2% due to defense contract delays.
Margins & Profit: Gross margin fell to 68.3% from 73.9% due to sales mix and higher costs; operating margin declined to 19.5%.
M&A Strategy: The company remains focused on M&A to diversify and boost long-term growth, with Precision Acoustics contributing 20.6% of Q3 revenue.
No China Exposure: Management confirmed minimal supply chain or sales exposure to China.
