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Coda Octopus sees 86.8% net income rise despite marine tech drop, driven by defense and PAL segments.

Market News
11 Sep 2026
Seeking Alpha
View Source
Bullish
Coda Octopus sees 86.8% net income rise despite marine tech drop, driven by defense and PAL segments.

Coda Octopus reported an 86.8% increase in net income last quarter, fueled by strong performance in its Defense Engineering (+37.9%) and PAL (+17.5%) divisions, offsetting a 26.8% decline in its Marine Technology segment. Challenges include a demand freeze in offshore projects in the Middle East and Asia, limited public float with around 20% insider ownership, and an upcoming Q3 earnings report due September 14. The U.S. Navy's approval for fleet-wide procurement of the untethered DAVD product marks a transition from R&D to commercial sales, supporting expected procurement growth in the second half of the year. With $30.6 million in debt-free cash and a market price near $10.00, Coda Octopus's operating business is valued at about $82 million, trading below 3 times forward revenue with strong margins as a defense supplier.

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