PRESENTATION Fourth Quarter and Fiscal Year 2026 Results Safe Harbor Statement All statements in this presentation that are not historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements may be identified by words such as "believe," "intend," "expect," "may," "could," "would," "will," "should," "plan," "project," "contemplate," "anticipate," or similar statements. Because these statements reflect the current views of Ar ...

Core Insights - Coda Octopus Group (CODA) is positioned as an emerging technology company despite having nearly 50 years of operational experience [1] Company Analysis - The focus is on small to mid-cap companies that possess disruptive technology, with an emphasis on competitive analysis and the backgrounds of founders [2] - The investment strategy involves a two-year time frame, with a tendency to hold investments for longer periods [2] - The company has a historical context of family investment experiences, highlighting lessons learned from past market downturns [2] Investment Perspective - The analyst expresses a potential interest in initiating a long position in CODA within the next 72 hours [3]

Financial Highlights - Q3 2026 consolidated revenues reached $251 million, a 2% decrease year-over-year but a 6% increase sequentially compared to Q2 2026[5] - Q3 2026 earnings per diluted share increased by 9% year-over-year to $2.17[5] - Q3 2026 EBITDA was $40.3 million, representing 16% of revenue[5] - The quarterly dividend increased by 33% to $0.50 per common share[5] Backlog and Projects - The project backlog reached a record of approximately $3.0 billion as of October 31, 2025[5] - The current backlog represents approximately 6GW in new energy builds[5] - Recent additions to the backlog include a 1,350 MW combined cycle power plant and an 860 MW natural gas-fired power plant, both in Texas[5] - Natural Gas projects account for 79% of the backlog, Renewable projects 16%, and Industrial projects 5%[20] Market Drivers and Growth - Electricity demand is projected to increase by 25% by 2030 and 78% by 2050[21, 40] - Data center power demand is projected to double to 945 TWh by 2030[14] - Electricity demand from EVs is projected to reach 780 TWh in 2030, increasing from 180 TWh in 2024[16] Balance Sheet and Capital Allocation - Cash, cash equivalents, and investments totaled $727 million as of October 31, 2025[28] - Net liquidity was $377 million as of October 31, 2025[28] - $109.6 million has been returned to shareholders through share repurchases since November 2021[33]

Core Insights - DroneShield is an Australian company that specializes in counter-drone systems and has established itself as a market leader with solutions deployed in 50 countries [1] Company Overview - The company operates in the burgeoning counter-drone industry, which is experiencing significant growth [1] - DroneShield's competitive positioning is bolstered by its disruptive technology and extensive international presence [1] Investment Perspective - The analysis focuses on small to mid-cap companies with growth potential, particularly those with innovative technologies [1] - The investment strategy involves a two-year time frame, with a tendency to hold investments longer if they perform well [1] Historical Context - The analyst's investment background includes experiences through various market cycles, emphasizing the importance of selecting winning investments and managing losses effectively [1]

Financial Highlights - Q2 2026 consolidated revenues increased by 5% year-over-year and 23% sequentially compared to Q1 2026, with a consolidated gross margin of 19%[5] - Record Q2 earnings per diluted share of $2.50, up $1.19 year-over-year[5] - Q2 EBITDA reached $36 million, representing 15.2% of revenue[5] - The company paid a quarterly dividend of $0.375 per common share[5] Project Backlog and Business Segments - Record project backlog of $2.0 billion as of July 31, 2025[5] - Power Industry Services accounted for 83% of Q2 revenues, generating $197 million in revenue and $35 million in pre-tax income[10] - Industrial Construction Services contributed 15% of Q2 revenues, with $36 million in revenue and $3 million in pre-tax income[10] - Telecommunications Infrastructure Services represented 2% of Q2 revenues, amounting to $5 million in revenue and $0.3 million in pre-tax income[10] Market Drivers and Growth - AI power demand is projected to grow at an annual average of 70% through 2027[14] - Electric vehicle adoption is projected to grow 20-fold by 2040, increasing the average total annual EV load in the U S to 468000 GWh from 24000 GWh in 2023[16] - Companies have committed $525 billion towards the construction of factories making semiconductors, microchips, batteries, and solar panels since 2021[18]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenues of $776 million, up 6.3% compared to the same quarter last year, and up 5.5% on an organic basis [8][17] - Adjusted EBITDA grew 13.9% year over year to $197 million, with an adjusted EBITDA margin of 25.4%, an increase of 170 basis points [8][18] - Adjusted net income for the second quarter was $110 million, up 17% from the previous year, with adjusted diluted earnings per share rising to $0.52 from $0.44 [18][19] Performance by Business Segment - **Industrial Segment**: Revenues rose 7.6% to $338 million, with organic growth of 7%. Adjusted EBITDA increased 20.6% to $117 million, and the adjusted EBITDA margin improved to 34.6% [19][20] - **Consumer Segment**: Revenues were $340 million, up 5.6% overall and 4.7% organically. Adjusted EBITDA was $65 million, a 6.6% increase, with a margin of 19.1% [21][22] - **Software and Advisory Segment**: Revenues increased 4.3% to $98 million, with organic growth of 3.2%. Adjusted EBITDA remained unchanged at $15 million, with a margin of 15.3% [22][23] Market Data and Key Metrics Changes - The company noted a dynamic geopolitical and regulatory environment impacting customer behavior, with a pull forward in orders observed in both industrial and consumer segments [14][35] - The demand for data center services is expected to grow significantly, with power consumption by data centers projected to rise from 4.4% of total U.S. electricity demand in 2023 to 12% by 2028 [11][12] Company Strategy and Development Direction - The company is focusing on higher growth megatrends, including global energy transition, electrification, and digitalization, to drive future growth [6][7] - Strategic investments in lab expansions and capacity enhancements are aimed at addressing growth opportunities in key end markets [9][10] - The company remains committed to identifying and executing strategic acquisitions to enhance profitability and earnings potential [27][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties and affirmed the full-year 2025 outlook, expecting mid-single-digit organic revenue growth [26][25] - The company highlighted the essential nature of its services and the resilience of its business model, which supports sustained revenue streams and deep customer relationships [14][30] Other Important Information - The company generated $208 million in free cash flow in the first half of 2025, a 58.8% increase from the previous year [24] - Capital expenditures for the first half were $93 million, with expectations for 2025 capital expenditures to be around 7% to 8% of revenue [24][27] Q&A Session Summary Question: Changes in client behavior related to tariffs - Management noted a shift in client behavior due to uncertainties, with some pull forward in orders observed in both industrial and consumer segments [34][35] Question: Update on lab capacity and future investments - Management confirmed ongoing investments in lab capacity and improvements, with a focus on areas where customer demand is highest [36][37] Question: Tougher comparisons in the second half of the year - Management acknowledged the tougher comparisons but expressed confidence in the business's progress and affirmed guidance for the full year [42][43] Question: Quantifying pull forward activity in segments - Management indicated that pull forward activity was observed in both industrial and consumer segments, with specific quantification provided for organic revenue growth [46][47] Question: Margin expansion opportunities - Management sees margin expansion opportunities across all segments, with strong progress noted in the industrial segment [50][51] Question: Growth in data centers and related megatrends - Management discussed the confluence of electrification, sustainability, and digitalization as key trends driving growth in data centers [55][56] Question: M&A pipeline and competitive pressures - Management remains disciplined in the M&A environment, actively evaluating opportunities that align with the company's strategy [89][90]

Financial Highlights - Consolidated Q1 revenues increased by 23% year-over-year[4] - Q1 earnings per diluted share reached $1.60, an increase of $1.02 year-over-year[4] - Q1 EBITDA totaled $30 million, representing 15.6% of revenue[4] - Gross margin was 19% in Q1[4] Project Backlog - Record project backlog of $1.9 billion as of April 30, 2025[4] - Q1 backlog additions included a 1.2 GW ultra-efficient natural gas-fired project[4] - Natural gas projects constitute 67% of the backlog, while renewable projects account for 28%[19] - Industrial projects make up 5% of the backlog[19] Market Drivers and Growth Strategy - AI power demand is projected to grow at an annual average of 70% through 2027[13] - EV adoption is projected to grow 20-fold by 2040, increasing the average total annual EV load in the U S to 468,000 GWh from 24,000 GWh in 2023[15] - Companies have committed $525 billion towards the construction of factories making semiconductors, microchips, batteries, and solar panels since 2021[17]

Group 1: Importance of Copper - Copper is essential for the modern economy, playing a critical role in the electrification trend, including electric vehicles, renewable energy, and data centers [2] - The U.S. administration aims to support domestic production of copper, which is beneficial for Freeport-McMoRan [3] Group 2: Freeport-McMoRan's Role - Freeport-McMoRan supplies 70% of domestically sourced copper for U.S. refining, positioning itself as a key player in domestic production [4] - The company is expected to benefit from a premium on U.S. copper prices compared to international prices, potentially leading to an annual financial benefit of approximately $800 million [5] Group 3: Production Initiatives - Freeport plans to sell 4 billion pounds of copper in 2025, with a leaching initiative expected to contribute 200 million pounds by the end of the year, increasing to 800 million pounds by 2030 [6][7] - The company has brownfield expansion projects in Arizona that could increase copper production by 2.5 billion pounds over time, with 47% of that from the U.S. [9] Group 4: Financial Outlook - Management estimates $11 billion in EBITDA for 2026/2027 at a copper price of $4 per pound, and $15 billion at $5 per pound [12] - Current copper prices suggest a potential EBITDA of $13.6 billion, compared to a market capitalization of $56.6 billion, indicating an attractive valuation for the company [13]