MIND Technology, Inc. Q2 FY2026 earnings call

• MIND delivered strong second quarter results, returning to profitability after first quarter delivery delays. Seamap revenues grew due to system sales and aftermarket activities. - Aftermarket revenue was 68% of total revenues in the first 6 months of the fiscal year. - Expanded manufacturing and repair facility in Huntsville, Texas to handle larger projects, supporting existing Seamap products, new products, and third-party services. - Marine Technology product revenues for Q2 2026 were $13.6M, up 35% year-over-year. - Gross profit was $6.8M with a 50% margin, improved due to product mix and cost optimization. - Operating income was $2.7M, up 86% year-over-year; adjusted EBITDA was $3.1M, up from $1.8M year-over-year; net income was $1.9M, up from $798k year-over-year. - Working capital was $25.1M as of July 31, 2025, with $7.8M cash on hand.

Marine Technology product revenues for the second quarter of fiscal 2026 were $13.6 million, a healthy improvement from the same quarter last year, up approximately 35%. The aftermarket business, including spare parts, repair, service, etc., accounted for about 68% of total revenues in the first 6 months of the fiscal year. This aftermarket activity has higher margins as these orders typically don't attract discounts like full system orders.

• Expect fiscal 2026 results to be similar to fiscal 2025. - Confident in existing backlog and pipeline of orders for favorable financial performance in coming quarters. - Customers expected to solidify 2026 plans in coming months. - Intend to evaluate opportunities to enhance stockholder value, including acquisitions, while maintaining financial flexibility.

• Macro uncertainties in the market are limiting visibility into next year, causing some customer delays in purchase commitments. - Potential impact from customer delivery requirements and other factors on future periods. - Timing issues or delivery delays could impact results.

Q: Clarifications on parts and services revenue, Huntsville expansion, backlog variance A: Rob Capps discussed run rate of aftermarket revenue, Huntsville expansion ramping up, and backlog variance due to aftermarket business and order timing.

Q: Acquisition strategy, progress on mapping deal, Huntsville opportunities A: Looking for additive products/small divisions, mapping deal ongoing, Huntsville expansion expected to add meaningfully to revenues and cash flow.

Q: Growth rate expectations, Huntsville tax and cash flow benefits A: Expecting high single-digit to low double-digit growth, Huntsville expansion beneficial for tax and cash flow