MIND Technology, Inc. Q4 FY2025 earnings call

• MIND delivered very strong fourth quarter results contributing to a record fiscal 2025. Cash flow from operations grew, and it was the fifth consecutive quarter of profitable results.
• Entered fiscal 2026 with a backlog of approximately $16 million, and received ~$15.9 million of orders post-year end. Key product contributors are GunLink source controllers, BuoyLink positioning systems, and SeaLink streamer systems.
• Aftermarket business is about 40% of revenue, with opportunities from spare parts, repairs, and support services. Supply chain optimized, order visibility improved, and inventory balances drawn down.
• Marine Technology product revenues grew, capitalizing on macro tailwinds, and investments in next-gen Sealink streamer systems are ongoing.

Marine Technology product revenues for the fourth quarter were $15 million, and for the full fiscal year 2025 were $46.9 million. Both periods showed meaningful growth for the business. The aftermarket business contributes roughly 40% of revenue.

• Expect first quarter results to return to more normalized levels but optimistic for positive adjusted EBITDA and continued profitability in fiscal 2026 and beyond.
• Aim to add scale through organic growth, acquisitions, or combinations. Filed a shelf registration statement for financial flexibility.
• Believes MIND is well-positioned for continued favorable results with a strong backlog, pipeline, and market position.

• Timing of specific orders is subject to variability due to challenges, unforeseen circumstances, or customer delivery requirements.
• Political and economic environment, including trade tariffs, could impact business though currently minimal direct impact anticipated.

Q: Tyson Bauer asked about the pipeline, backlog, and aftermarket business, and if there are unbacklogged orders with high confidence.

A: Robert Capps said there are highly confident opportunities not in backlog due to complex system negotiations, and aftermarket is book and build with quicker turn than large systems.

Q: Tyson Bauer asked about shelf registration and growth targets.

A: Robert Capps said shelf registration is common and they aim to add scale through various growth methods.

Q: Ross Taylor asked about EBITDA margin sensitivity and order book outlog.

A: Robert Capps said there's volume sensitivity but they see opportunities to enhance margins, and their equipment is used in various applications like ocean bottom mapping and offshore installations.

Q: Ross Taylor asked about defense space utilization.

A: Robert Capps said they paused defense work to focus on profitability but are reengaging and see potential there.

Q: Ross Taylor asked about 2026 outlook.

A: Robert Capps said 2026 is expected to be marginally better than 2025