Geospace Technologies (US:GEOS)2025-11-21 21:35Revenue Performance - Consolidated revenue for fiscal year 2025 was $110.8 million, a decrease of $24.8 million, or 18.3%, from fiscal year 2024[149]. - Smart Water segment revenue increased by $3.4 million, or 10.4%, primarily due to higher demand for Hydroconn® cable and connector products[153]. - Energy Solutions segment revenue decreased by $27.3 million, or 35.0%, with product revenue down by $14.3 million, or 24.3%[155]. - Revenue from the Energy Solutions business segment in fiscal year 2025 was primarily derived from wireless product sales, with expectations for moderate growth in fiscal year 2026[180]. - Fiscal year 2026 revenue from Energy Solutions reservoir products is expected to significantly increase due to a PRM contract entered in Q3 2025, lasting approximately 18 months[181]. - Revenue from the Smart Water business segment is expected to increase slightly in fiscal year 2026, driven by demand for Hydroconn® and Aquana products[182]. - The acquisition of Geovox's Heartbeat Detector® is anticipated to boost revenue from the Intelligent Industrial business segment in fiscal year 2026[183]. Profitability and Expenses - Consolidated gross profit for fiscal year 2025 was $32.9 million, a decrease of $19.7 million, or 37.4%, from fiscal year 2024[150]. - Operating expenses for fiscal year 2025 were $48.8 million, an increase of $3.3 million, or 7.3%, from fiscal year 2024[151]. - Operating income from the Energy Solutions segment decreased by $18.2 million, or 97.9%, due to lower revenues and higher research and development expenses[156]. Financial Position - The company maintained a strong balance sheet with no debt and had $26.3 million in cash and cash equivalents as of September 30, 2025[148][159]. - The company's available cash and cash equivalents were $26.3 million as of September 30, 2025, which included $0.8 million held by foreign subsidiaries[164]. - As of September 30, 2025, the company had no outstanding borrowings under the credit agreement and could borrow approximately $8 million without violating any debt covenants[163]. Investments and Acquisitions - The company expects fiscal year 2026 cash investments in property, plant, and equipment to be approximately $7 million[160]. - The company completed a stock buy-back program authorized by the board of directors, repurchasing up to $7 million of common stock[161]. - The company amended its credit agreement with Woodforest National Bank, extending a revolving credit facility with a maximum availability of $25 million[162]. - The company acquired Geovox in August 2025, recording an initial contingent earn-out liability of $2.5 million, with a maximum potential of $3.3 million[167]. Market Strategy - The company is actively marketing its SADAR® technologies to security and oil and gas industry customers, expecting increased acceptance over time[184]. - The company recognized a gain of $4.6 million from the sale of real property during the third quarter of fiscal year 2025[152].