Financial Data and Key Metrics Changes - The company reported net revenue of $987 million for the first quarter, an increase of 8% from the prior year [5] - Operating income rose to $131 million, up 12% year-over-year [5] - Adjusted earnings per share (EPS) increased by 17% to $0.34, while GAAP EPS was reported at $0.40 [5][12] Business Segment Performance - The Government Services segment generated $382 million in revenue, growing 5% despite a U.S. government shutdown [6] - The Commercial and International Group segment's revenue increased by 10% to $605 million, driven by growth in the UK and Ireland [6][7] - Margins for both segments improved by 40 basis points, with Government Services at 18% and Commercial International at 13% [6][7] Market Data and Key Metrics Changes - Federal work increased by 7%, primarily due to projects with the U.S. Army Corps of Engineers [8] - U.S. state and local markets grew by 10%, driven by municipal water treatment and digital water modernization [8] - International work accounted for 48% of total revenues, growing at a rate of 13% [9] Company Strategy and Industry Competition - The company focuses on water supply, treatment, flood control, and environmental stewardship, which remain in high demand [3] - Strategic growth areas include technology and automation, with plans for acquisitions to enhance capabilities [17][24] - The company aims to leverage its strong balance sheet for investments in growth opportunities [16][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth despite challenges like the government shutdown, expecting federal orders to increase in the second half of the fiscal year [10][11] - The company anticipates continued strong demand in water and environmental services, with a forecasted revenue growth rate of 5%-10% for international markets [25][26] - Management highlighted the importance of bipartisan support for future growth, particularly in federal spending [59] Other Important Information - The company announced a 12% increase in its quarterly cash dividend, marking the 47th consecutive quarterly dividend [17] - A stock buyback program was initiated, with $50 million repurchased in the first quarter [18] - The company divested its Norway operation, which was deemed non-core, while acquiring Halvik and Providence to enhance its consulting services [77][80] Q&A Session Summary Question: Strength in Federal Business - Management noted that the 7% growth in federal business was supported by advanced planning and strong relationships with clients, particularly the U.S. Army Corps of Engineers [35][38] Question: International Business Performance - The UK and Ireland have shown strong double-digit growth, while Canada is performing well with significant infrastructure investments [40][42] - Australia is recovering from previous declines, moving from -15% growth to flat performance [44][46] Question: Guidance and Market Conditions - Management indicated that guidance reflects a midpoint of 9% revenue growth, with potential risks from government shutdowns impacting the low end of the range [56][58] Question: M&A Focus and Strategy - The company is looking for strategic acquisitions that could justify higher leverage, with a focus on partnerships that transform the industry [65][66] - Management emphasized the importance of maintaining shareholder value while pursuing growth through acquisitions [72][74]

We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as may be required by law. We refer you to our filings with the Securities and Exchange Commission for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including, but not limited to, risks and uncertainties identified in our Form 10-K for the year ended Octob ...

Financial Data and Key Metrics Changes - Consolidated net revenue for fiscal year 2025 increased by 30.7% to $26.6 million from $20.3 million in fiscal year 2024 [23][25] - Gross profit rose to $17.7 million, with a gross margin of 66.5%, down from 69.8% in the previous year [25][26] - Operating income increased by 26.6% to $4.5 million, with an operating margin of 17.1% [28] Business Line Data and Key Metrics Changes - Marine technology business revenue increased by 3.2% to $13.2 million, contributing 49.8% of consolidated net revenue [4][23] - Defense engineering services revenue grew by 5.6% to $7.9 million [25] - Acoustic Sensors and Materials business, added in October 2024, generated $5.4 million, contributing 20.4% to consolidated net revenue [23][25] Market Data and Key Metrics Changes - 46% of marine technology business revenue came from the defense sector, while 54% was from the commercial marine sector [31] - Hardware sales in the marine technology business increased by 30.5% to $9.5 million [9] - Rental assets were underutilized, impacting gross profit margins due to changes in U.S. policy on offshore renewables [10] Company Strategy and Development Direction - The company aims to pivot the revenue model of the marine technology business towards a multi-year program-based adoption model [33] - Focus on increasing market share in underwater imaging sensors within the defense sector, leveraging the unique capabilities of the Echoscope and DAVD technologies [6][12] - The launch of the NanoGen series sonar is positioned as a core real-time perception sensor for AI-enabled autonomous platforms [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense sector, highlighting the importance of securing contracts and expanding market presence [31][60] - The company anticipates procurement decisions for active opportunities in early 2026, with expectations for initial deliveries to commence within the 2026 fiscal year [17] - Management noted the challenges posed by the global policy environment but emphasized the solid financial results achieved [4][23] Other Important Information - The company has $28.7 million in cash and cash equivalents with no debt, representing an increase from $22.5 million the previous year [29] - The acquisition of Precision Acoustics Limited is expected to enhance capabilities in underwater acoustics and position the company for larger defense contracts [8][11] Q&A Session Summary Question: Updates on deliveries to the Indian Navy - Management was unclear about the specifics regarding the Indian Navy and did not confirm any new customer relationships [35] Question: Progress in Europe and future orders - Management expressed excitement about delivering systems to a European navy and anticipated that training would catalyze further adoption [36][37] Question: Cumulative deliveries of the DAVD untethered system - In fiscal 2025, the company achieved $3.7 million in DAVD revenue and expects to exceed this in fiscal 2026, pending approval for operational use [39][40] Question: Foreign navies testing DAVD - Management highlighted the importance of U.S. Navy approval for broader adoption and mentioned involvement with multiple foreign navies [42][46] Question: Next generation Echoscope customer feedback - Management reported strong interest in the NanoGen series, indicating it is a game changer for various markets [50][51]

Core Viewpoint - Draganfly Inc. has entered a collaborative framework with Babcock International Group PLC and Critical Infrastructure Technologies Corp. to enhance defense and security capabilities in the Asia-Pacific region [1][4]. Group 1: Collaboration Details - The partnership combines strengths in defense engineering, digital mission systems, and advanced unmanned aerial solutions [2]. - Babcock brings extensive experience in mission-critical engineering, fleet sustainment, and defense program delivery [2][6]. - Critical Infrastructure Technologies contributes high-assurance digital architectures and integrated sensor platforms for national security [2][8]. Group 2: Draganfly's Capabilities - Draganfly's NDAA-compliant unmanned aerial systems, such as the Commander 3XL, offer multi-mission ISR and rapid-response capabilities [3]. - The collaboration aims to address regional priorities including defense modernization, maritime security, disaster response, and critical infrastructure protection [3][4]. Group 3: Market Positioning - The partnership is seen as a significant step for Draganfly's expansion into the Asia-Pacific defense market [4]. - There is a growing demand for resilient, sovereign mission capabilities in the region, which the collaboration aims to fulfill with interoperable and scalable solutions [4].

Core Insights - The agreement between Terra Innovatum and RAIT 88 aims to enhance business development opportunities across defense, civil energy, and government sectors while advancing the deployment and training of Micro-Modular Reactor (MMR) systems [1][6] - The partnership focuses on the commercialization of the SOLO™ reactor as a non-proliferative energy solution for both defense and civilian applications, leveraging RAIT 88's NATO network [3][8] Company Overview - Terra Innovatum is a developer of micro-modular nuclear reactors, with a mission to make nuclear power accessible and deliver scalable, affordable energy solutions [9][10] - RAIT 88 is a defense engineering center recognized for its expertise in engineering, R&D, and systems integration, serving as a strategic hub for NATO-aligned initiatives [14] Strategic Collaboration - The MOU establishes a broad collaboration to drive the global commercialization of the SOLO™ reactor, targeting mission-critical environments and humanitarian missions [3][6] - The partnership will explore the creation of interactive training programs for operators and maintenance teams, aligning with international nuclear regulatory standards [7] Market Potential - The strategic channel is expected to facilitate commercial negotiations for projects across Europe and Asia, potentially totaling over 1 GWe of capacity [3] - SOLO™ is anticipated to be available globally within the next three years, addressing pressing global energy demands with a market-ready solution [11] Technological Advancements - The SOLO™ reactor is designed to provide CO2-free power solutions for various applications, including data centers, remote towns, and industrial operations in hard-to-abate sectors [12] - The reactor's modular design allows for scalability, with the capability to deliver up to 1 GW or more of power while minimizing supply chain risks [11][12]

Core Insights - Terra Innovatum has signed a memorandum of understanding with RAIT 88 to collaborate on the commercialization of its SOLO™ micro-modular nuclear reactor for defense and civilian applications [1][3][8] Company Overview - Terra Innovatum specializes in developing micro-modular nuclear reactors, aiming to provide scalable and safe energy solutions [9][10] - The SOLO™ reactor is designed to address global energy shortages and is expected to be available globally within the next three years [11] Strategic Partnership - The partnership with RAIT 88 aims to leverage its extensive NATO network to position SOLO™ as a reliable energy solution for mission-critical environments [3][6] - The agreement includes business development opportunities across defense, civil energy, and governmental sectors, enhancing the deployment and operation of the SOLO™ reactor [6][8] Technological Integration - RAIT 88 will integrate advanced simulation and cutting-edge technologies to improve the operational readiness and deployment of the SOLO™ reactor [6][8] - Both companies are exploring the creation of interactive training programs for operators and safety personnel, aligning with international nuclear regulatory standards [7][8] Market Potential - The partnership is expected to facilitate commercial negotiations for projects across Europe and Asia, potentially totaling over 1 GWe of capacity [3][8] - SOLO™ is designed for versatile applications, including CO2-free power solutions for data centers, remote towns, and industrial operations in hard-to-abate sectors [12]

Core Viewpoint - Coda Octopus Group, Inc. has received a significant order for sub-components from a long-term customer, indicating a positive outlook for its Defense Engineering Services Business as Europe increases defense spending and expedites defense programs [1][2]. Company Overview - Coda Octopus Group, Inc. is a supplier to the underwater/subsea market, providing hardware and software solutions, including proprietary real-time 4D/5D/6D imaging sonars and the Diver Augmented Vision Display (DAVD) system [3]. - The Echoscope technology is utilized globally for various applications in both commercial offshore and defense underwater markets, including complex mapping, subsea intervention, and marine construction [3]. - The DAVD system integrates sonar technology, enabling dive operations in zero visibility conditions, which is a common challenge in diving operations [4]. Recent Developments - The company has acquired Precision Acoustics Limited, a leader in the ultrasound and acoustic measurement field, enhancing its capabilities in medical imaging and Non-Destructive Testing (NDT) [5]. - Coda Octopus Group operates two defense engineering businesses: Coda Octopus Martech Ltd in the UK and Coda Octopus Colmek, Inc. in the U.S., focusing on supplying sub-assemblies for mission-critical programs [6].