MIND Technology (MIND) 11 Dec 242025 Q3 Earnings call transcript

Greetings, and welcome to the MIND Technology Third Quarter Fiscal 2025 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Zach Vaughan. Thank you.

You may begin.

operator. you, Thank welcome Quarter and MIND Fiscal Technology Good Conference to Call. Third Earnings XXXX morning, the We of appreciate all you joining today. us Cox, are me Officer; Financial Rob President Vice Mark Officer. and Chief President With and Chief Capps, and Executive

I have few I items to a turn the cover. Before over Rob, call to

mind-technology.com of this company's Investor XX to information via you webcast only days Information replay or reading. If replay in as by may accurate like as website Relations no release. are time will replay XXXX, it earnings speaks Wednesday, reported going today, XXth. listen to you call, would The XX, the longer any transcript section access via the of be December at a to be information was or provided instant December the replay recorded to listening of and of today's available call a for until how time-sensitive on of that this therefore, yesterday's advised on

performance statements. factors the begin, performance January meaning Before company are many or on and its to note These the time SEC, on the uncertainties by known may disclosed These Form within filings including statements our report these actual let statements may forward-looking statements Securities XXXX. statements. expectations Reform materially morning yesterday, risks based that conference current unknown call please constitute to from statement XXXX. please this and in the forward-looking XX, expressed include forward-looking Furthermore, to predict Act this incorporated refer made press those control our XX-K are results with that management Litigation of issued the we and call, uncertainties differ of from future during its other statements certain and and risks, covered company the the by regarding factors, for which the ended release management's implied or contents risk the that unable company's include or call year in results we start to is also by or cause this future any Private as time of annual of remind in you by me the

Now call I'd like to to turn Capps. over Rob the

Okay. thank Thanks, like Zach, and to for everyone us I'd joining today.

provide discuss I'll detailed today, update from outlook. So I'll highlights our some our about to quarter. a with financials, on then the wrap things will Mark some return up and remarks more

delivered quarter As strong expected, third results. MIND

continues yielding cost business our returns. is Our to management on efficiently operate and emphasis execution and

again Our We're which fourth our a have in moment. during cash from consecutive I'll pipeline our great are transformation We're to which quarter, visible good indicators elaborate on made. we've of of momentum. the flow operations That's results building grew results. and of the helped also profitable liquidity. orders, quarter These backlog generated improve pleased in

in capital encouraging positioned business financial profitability coming MIND improved We is quarters. periods. advantage and of take the opportunities MIND for believe coming structure that with and results we Our to important strategically improved look growth, in environment continued provide

along seen X fourth stock Mark with entered stock common of As million quarter, retired. this financials. a transaction the third been impact and The in can I conversion, significant common quarter stock, will of this accounting but We accrued all associated have undeclared be in was moment. touch stock last quarter for on the our strong million. of preferred of the touched now on with backlog X.X approximately a just conversion dividends $XX shares issued we All preferred conversion just the approximately a shares Upon the development. under outstanding. outstanding into million have

offset this revenues, While the deliveries third to improved that new able quarter with during yet our order made substantial activity contributed to orders. the essentially is backlog we flat, we were

mentioned, every and is order I we receive. As and previously each often sporadic, announce don't flow we order

and backlog order general elevated one activity, and of our However, is is historical much trend the flow standards. higher than

Beyond dynamics in have controllers, pipeline orders more our Three a our prospects coming double market of in our currently and systems estimate well be SeaLink and BuoyLink received This these results robust of backlog TMF these backlog are firm a confident orders. that, strong orders. than of contributors generating We across recipe and in many systems. confidence an position financial in that and opportunities positioning confident prove the strong some position pipeline to more will focus excess of I'm streamer future. are for source active orders and product a to pending enjoys gives highly the that pipeline We number of us we backlog in pending and currently GunLink this periods. to backlog for cases. orders have success market lines, even of improved our a dominant with meaningful the favorable products, be

As base business, we grow to came products, repairs aftermarket of support. this aftermarket from the of as parts, our In for quarter third year, increased revenue our continue this opportunity activity. installed we XX% and of also spare our such approximately

as customer our Now subject that that past, circumstances gives The us due unforeseen any pipeline delivery and has challenges, variability issues. allowed I supply chain to just backlog number requirements. I've or visibility remind in the is of better must manage to timing specific of us the done you to orders

key for year past been aggressive or we've in times. lead so, with components the long acquiring those For

our increase to this continue inventory to draw the into to down expect While some degree an to our recently requirements We've this trend quarter. and has in fourth able inventories, been contributed balances allowed meet and to increase has revenue. us of delivery it the customers

for results. to We fiscal year-over-year. XXXX third both $XX.X revenue our quarter grow our million. Marine Turning able the were were again revenues and to Technology Products sequentially of

contribute market structure, improve working execution, tailwinds continually We continue and macro results. to and and customer to field order to respond to continue future to our cost technology flow number to capitalize within on requests We're General space a engagement for sustained expect conditions we improved quarters. generate efficiency also accreditations. be and stimulate marine which and profitability to We inquiries strong. the continue see opportunities, of in to

continues team our ways evolving adapt customers. to technologies develop Our meet related and systems to sales our to implement the good example Recent this. SeaLink inquiries and needs are and to of a innovative new our streamer of

seeing I'm the advantage As of to approach our next additional streamer and products a we and that address resolution making industry. differentiated us to we're the the best-in-class marine technology growing the confident SeaLink will suite our develop competitive are to advance result, investments generation system. give further of ultra-high within continue demand

to Software for Ai Spectral traction see continue our We Suite.

that from revenue technology. feedback being number in very expanded positive. minimis market has de There has this While address been thus also a prospective customer customers are of for exploring ways this which We're pursued. can are an we more far, been quickly

walk Now quarter let Mark you our for come in detail, me, through more financials let a bit that, I'll third back. then

and morning, good Thanks, everyone. Rob,

include XXXX and reflect prior with to business. I'd operations been Klein. As period related August restated prior sale comparative only reported and usual, that yesterday discussed in treated periods that. the those Klein, remind as to have of the not to Accordingly, amounts sale been They like you the operations today to have do results here include our data discontinued for ongoing

from in XX% technology up the pipeline approximately highly strength XXXX $XX.X support year a we're same XXX% seeing the from quarter, earlier, quarters. coming in revenues of sales our mentioned Rob The from favorable and our sustained second totaled backlog which was about product million and in all fiscal period environment confident quarter. continues the sequentially significant us the marine As markets for positioning to key our well customer revenue demand high-level ago, orders,

essentially compared XXX% the year was third Gross $X.X and quarter We of a XX% million, meaningfully earlier improved implemented flat for year XX% profit down Third the sequentially. to are when margin was benefiting absorption quarter to gross efficiencies contributing overhead price production ago increases higher are throughout profit with that business up which and we both margins. various approximately quarter, was from year the sequentially. greater which and about last this and was

and year to approximately administrative third million XXXX, for flat which of was $X.X general Our a the sequentially fiscal compared down expenses ago. were quarter but

quarter, and to streamline stem most the costs sale of support from overhead following of ability related the expenses highlighted Klein. administrative our As Klein, last mainly general we in reductions to notably these corporate expenses

$X.X development research development fiscal third the Our expense and $X.X XXXX was our of to Operating of approximately approximately million compared operating $XXX,XXX. income for the an third system. fiscal million directed largely third XXXX. quarter of was in quarter the Costs quarter streamer toward for the loss next-generation are

the approximately in a third of the the which net million was of to XXXX. compared year from was $X an Net Third was income the ago. improvement approximately for EBITDA million $X.X of quarter $X.X quarter adjusted approximately approximately $X million quarter fiscal third $X.X an third million million, adjusted EBITDA quarter loss loss of in approximately

Rob fourth to achieved building we're on this momentum to and quarter a another of future mentioned, our continue in profitability, in As have pleased we expect row periods.

working our XX, backlog $XX.X Liquidity acquiring of approximately on of $X.X orders. of such and impacted of operational be continued inventory October as As had requirements XXXX, capital million including cash by we our hand. million, to on executing

remains to However, in Balance cash a from the strong. represented we This compared sequential did operations increase XX% million quarter. quarter. of third the generate sheet $X.X flow of second

following structure have preferred and future to We conversion stockholder company now the in We value footing in a capital enhance stock flexibility clean solid are the and September. from which debt-free maintains periods.

shares This and stock. mentioned share preferred Rob issuance earnings stockholders stock stock, of over of and in over We net stock of has value was I'll recorded market last directly value to fees the new amount The As quarter, has reflect the new attributable the eliminated. credited been costs solicitation for common the transaction quarter in recorded to preferred million million, preferred been associated legal the common common value results it to the which the of approximately our third costs pass of concluding is of this but earnings. some carrying comments. carrying included conversion of of also the excess back now stock, the retained $XX the per as stock such not less income. into common X.X calculation value at approximately is the we included

customer Seamap to interest We're continues Mark. to engagement lines. Okay. MIND significant from our Thanks, product that and benefit related pleased

have Our We've our the common visibility higher opportunities. stock of operations clean stock. recent our in operating capital When to confidence our flexibility robust improved positive great us focused a structure, yielding to is strategy a conversion results. this preferred combined pursue lean of This and now efforts deal provides with gives for structure years. which very and level sustained after pipeline of orders streamlined from revenue. We

to costs our bottom managing margins to However, we dedicated also improve and remain line. enhance

Now and opportunities. new is orders. excited developed drive positioned that us we and better backlog actively a so continue up macro initiatives as company for much customer We've new that MIND, build valuable us and partnerships I'm the are and strong for chase environment that to to a relationships have enabled advantageous to

continue and of backlog the believe market Our marine demand significant variety orders and technology of of products pipeline firm prospects and pending to a markets. of product We adoption reflective industries and lines. our other orders our penetrate of are

quarters. opportunities While we believe in we're on poised with coming results additional quarter, deliver the results to improved and our MIND third for pleased capitalize is

As positive look EBITDA and conclude a deliver and result, fiscal profitability ahead XXXX we as adjusted we next to expect year. to

customer by encouraged engagement and the we environment Looking we remain are experiencing. current forward, demand

We expect quarter. our fourth to the when to third compared the again improved quarter be for results

current us strong and fiscal backlog our optimism for significant give also customer XXXX. engagement, visibility, Additionally, healthy pipeline

on supportive note market-leading focused be tailwinds. the differentiated products, now is strive forward future up that, growth. we this suite high We open in as value a improved on operator, sheet and wrapping environment to look also generating improved a we for can capital call year an The have periods. stockholder balance With up and and for questions. a which remain favorable some will of and benefiting We business structure, from instrumental market

Capital. KC Our Instructions] from of with comes line the [Operator Tyson question first Bauer

for Excellent into company. and end behind phase should the net with your you lot capitalization quarters options working growth the appears to starting you, to that other $X million and in all fiscal at more up buffer what open cash number embellish a blocking seems build some the us, unless from we've now have year the forward. entered tackling year you of for like or you the uses company? more where that of like looking could going phase quarter. about does buffer It that and the gains now to that for place building to going survival financial for With which of of type capital at we in a It now be able cash that we're now obviously is that cash of a noise relief were

Yes.

it So us we I look gives a before ago. have a year options lot back options, didn't think where of

So different it expand things, gives markets. different how us the into at can ability we offering, the how look to technology product take our can we

So us the flexibility. also some It gives requirements working before projects of just couldn't it to just gives of that that perhaps pursue us the maybe we it. capital other because capital

doing to now us we're don't big and portfolio to about. that base. what But out going things I acquisition, to revenue do options. start build want us our So not and it add what making see tangent that slowly just that's build and a are to we we're is gives what and

speaking you to just point necessarily in the out do caught myself, at for our... large sure I'm or want and acquisition don't, I time. not go a shareholders Street this We

list couldn't I that. to

other business Give financials. future exactly. we're that a providers sense that the scope global Yes, when what and in seismic that and of that base us that side your about services we just talking means? thing Give of prospective service marine base think fleets us that is missing a force is your is sense, shareholders with the annuity that, growing a and I talk institutions from installed installed parts, global for really one

world, we seismic plus in survey environments. stuff mean harsh with is used the every equipment contractor I installed in companies the right. This exactly many in very world. you're Well, have

So just beast. it nature breaks, the the of

replace great is this deal are a and doesn't there to for there to for always repairs, they spare increasing base. And So of away. us training parts, Those opportunity that have field provide installed out go service, things. guys

facility. to is We the So U.S. our of going on nearby think in steady do business, people business Malaysia in our good We it's to to over out continue all vessels. field flow send relatively it that We a Huntsville which the facility, grow. do the things Singapore. do I in here service world

the North are else, can't and Korea Obviously, everywhere are literally we go anywhere providing Russia. be. to those that can world you we So in and services. Iran you But

is a couple because this bigger out battlefield here. of competitor ago, And years industry, your the really dropped of the

we're niche source with niche is a the have are in that which the There In we're competition only the other on, in again, in position, we frankly, for the But game technological areas or systems. and we're That's and edge playing, but any should positioning sure, a some areas cases, in say, some guys. certainly demanding we have think applications controllers, leading over competition. I a town. systems within we a focused a for streamer for

us. very well that's -- So on area growing we're think we positioned that for a

that line operating mix, little that versus expenses there. have pricing, the In We but last other gross that additional your a you that see bigger side should side, on go things in your something margin. there. into that robust. on is that pricing a orders, And with addition new fairly as Is see operating we'll EBIT greater the concept expenses, brought of on light, top operating quarter, the margin, you leverage leverage pipeline The margins. improvements of holding product and that that have the the saw helping leverage we you influence up up the

Yes.

I just seen think of a So the color benefit. operational give I think that on lot we've to some that, leverage,

top you'll see lesser to continue of but more think a line I just as to that, maybe grows, degree.

of prior quoted leverage past pricing year. we some this have the revenue A do we was lot year the here. think actually delivered I

old X almost years pricing. So

little maybe some therefore, be discount a and some So I our bring to see opportunities aggressive on structures to improve line. we bottom more that, the more think

pros question times general which sense just Okay. possible throughout PEMEX, outlook? you necessarily in of from that side, And your improves side, your that on a the past heard and industry new deregulation in, the plus how and one various administration conference their hear within these Gulf the the cons, But with decade calls can materialize. which in we've comments activity lot tariffs improve don't the obviously, outlook of on coming other

Yes.

it's So It's positive, if not certainly a I negative. a think anything.

probably impact, Mexico. Gulf you is I to mentioned, as be think issues of the the more in going direct permitting

But our has And a are over so all world. that the positive again, customers impact. working

administration what does is coast has So that or positive, But this West off I an think. impact Africa of Brazil. a

you'll from So see I a us. think don't not it's think I impact but a a huge impact. direct positive,

issues other Again, manufacturing about tariffs and and Singapore. impact whatnot, that shipping you I I an think us. we're the don't out hear see remember, for of as

out delivering Singapore. of we're So

of impact an anything So don't see I might that from nature. really come that

is year order customers year a early that beyond next pickup activity? making flow the CapEx lot the more we anticipate the as new and the calendar next year first beyond. of of that This time you are for the really Okay. a get year, in your Would decisions little of and

months. they Yes. their And upon that I of of it or middle to it's a right they could And tomorrow be they prospects come in kind need we month a another kind could they win a pull there that depends the of specific number particular X are is lumpy, are you that it project, It demand predicated being. which as another of time know. mean just frame. therefore, of the have see trigger. fruition If or has what when part now,

certainly year. if But later So drives activity, I'm not this what that's of we'll really confident year, next into see a this. additional lot early

question Okay. for me. And last

your new customer product expect and Would pricing new the be on becoming prelude system base? available out? that full that once And more coming available. margins and about streamer sales talked favorable you a generation would to You industry that to gets

next think down more bit, further X It's it months not again, X sort road competition allow the thing. but our it will I mean for also, of suited the think we're the to, expanded Perhaps I little best there with Yes. address but to improved I or are will think some that's effectively. a not or a installations an today, perhaps us allow us address that And be I would applications well. maybe as technology. market

not addressable forward impact you'll will but benefit. I on our there, from that's where think think a Probably the see that I 'XX, going market. So expand big

Investment Our Taylor next the line with from question Ross of comes Partners. ARS

you're much because Tyson follow so questions. to exhausting your always it's having crossing spend to off First, time

everything which is especially this Q congratulations I impressive. the guys performance, really year, not the First, you have operational yet. accomplished on have seen

possible you So earnings you're is what GAAP impacted to year. trying for run number other but that by per by it earnings factors. early where factors, be year, year-to-date? a give Obviously, GAAP of a earnings would us at the impacted this get were are These share number sitting rate I'm some your this

$X.XXX So net activity. rather, our -- That's year-to-date million. income X-month million, is before share from $X dividend income

Yes, much. that's what you very Thank I was looking for.

about to of somewhat Or some in driven, or about are the that and You you some product number be aftermarket quarters annual a or lower higher good because number business. expect see more that field? a overall? lower. I said the you XX% that or But get Is should is might reasonably of that you kind aspect grow have see as and basis? XX% an one we seasonality that higher of of on of kind revenues, Tyson your understand should that the it's talked use fact

been or that historically, you -- at. we percentage. if X year used look Yes. just the great track That's we've to math. around it's last It's drive question that There's the That's periods that a factors the so. level, it's until because something looked

activity Where sales it's you system higher. to percentage down that you've drive higher drive going bigger that to is sales, So of going have absolute obviously. got

really would the two. continue a absolute to So function I it's of expect amount to increase. the

more You out stuff got there. to stuff more customers installed; keep more There's you got maintained.

have and either. don't well, bit thing. as tends It better as resell That's happens margins by You that other imagine. a to have to the it you might itself,

for matter used, doesn't new it's drives And of that piece utilized being it what it's and which how how it. I old is is, would equipment really or assume need the a

equipment aftermarket if that it even result piece in out a reasonably can So environment. [indiscernible] quickly turns new of sales

of matter a a As include fact, spares large component. most deliveries system

upfront happen. it's because know people Remember So spares to going they buy [indiscernible]

subsea of What and can energy I that in areas things at areas market, out the you look it have actually of have here? wrong Malaysian you mining go your You you other that you can have things. that. are what -- What market, seeing? for a I of that airliners have things Yes, the see are talked guys you defense looking probably, nature. driving the what you the growth with are the there? markets of new is interest One we've sales you lot you market, two have seen Or needs? are is, seeing market, mapping

energy So driver has still a rebound. obviously the big on been is exploration

for is certainly farm ocean that positive wind activity recently. capture been the So is big driving of us, stuff. Doing things carbon driver for are a things but installations Those have also for installations a marine for bottom other that most sorts for surveys all survey us recently.

are I areas, those things big in have been think opportunities there so far. the but driver two other

that the I has when the would think all program wants bottoms. world's ocean to map a that UN

continuing effort, me not growth subsea in the there's you're that's as source some of an where market like, lot also Is type the growing opportunity better mapping as need large you there's going somewhere, or area demand. way. goes you're strikes that program So I go that to interest? if that of the of know that a it along would a forward, with submarines of for But and to something a assume rock seeing that drone

the of some bottom doing for So for depth. providing us. to survey subsurface we're not directly ocean What is the

things from opportunities the are that, to But Also, going that that we to really that That's installations survey sold more customers. sort demand see said ocean other continue going drive actually having that technology the that's a going more on technology. we've But bottom, some that last that of as for our security, surface something areas the that's to to opportunities current us take there as revenue we multiline really we've itself, forward. Frankly, nature, and domain still need. readdress. opportunities. such our certainly of in the I think area technology which we've can see that's addresses that burner focus to things tried into we talked years as lot. really back an other are X.X things about that's There put we on on So

would talked kind the be you That great. or those? new products. for What CapEx having funding R&D about of Also, needs do see you

you I that. ups doing general, based past some quarter-to-quarter spending. level think But if downs see look to that don't things we've be of change in at big and prototype are like deliveries I this going it's that. year, been what a There just on from and from

was ratio, little should something we this expect the cash is conversion forward? XX% a pushing which over And year,

really going Well, how one inventory depending near to Ross, term some a improvement replenishing improve and is to that on that least really bit a precise would in but be have here, the a in see come to I what the tough to about expect drive do that's at to I nail term. hesitant in really orders would it too down. I'm near lot. we to expect

you sure get comment manage we can't do I'm opportunity, stage, understand I success the think the what big push matrix here let agree not a I given saying us to profitability at guys not to see I'm forward. Lastly, it, you would acquisition with powerful saying, want just yet. can but that and is then and Tyson's all I'm I this

the to preaching you're Ross, choir.

I often do.

Ask my dogs.

a I you As guys doing great job. said, are

your I in current you year, you that of that's about, or I this thank have stock the me, think To really quite turned it, quite to but earnings want I things when what recognize Tyson's $X Tyson's for your a makes or estimate, million rate ridiculously gives run basically a cheap. of you there. at business has guys talked north The at the around efforts. honestly, around look you earnings the wise. even done which it to will market get for lot price of honestly, north probably

comes from question line next Our of Instructions] [indiscernible] Igor Capital. [Operator the

bit up I'm I a business. actually ended loving started new the as stock. out your shareholder a little and to preferred

Now it a after this I even quarter, questions. of I have more. couple love

can it's orders you First or of normal compare me, is and you that in nature? something magnitude is can have specifically words, have the your exiting that an Maybe backlog. other pipeline it by previous contrast Is and such you unusual of a somewhat all, than your and unusual? or In more maybe this it you as the periods. mentioned you pipeline pending orders backlog much twice just tell which big pending situation that's

back It's only not period firm I that look orders. we We've conservative period if It what always unusual reporting been at all. report. at a historically. We're orders. pretty But of based specific to unusual on historically you not all varies tracked from that's about think number orders. We've

opportunities to get a common think I see for wanted sense pretty But the us. out that again, I So there. of, total we that's

couple considering more the thoughts other now it committee so any special Are going cheap is was of mentioned end, attractive guys to My private apprehension lot any or that want from are doing a thoughts a capital of now. for preferred stock how is you of callers structure perhaps better? the a companies strategic an explore you mentioned put to much private other target of your of Any take and I options you going [indiscernible] overhang are anymore. let's question, But one me to a conversions the justification before know the become thoughts? acquisition acquisition.

certainly concentrate someone to to do very as obviously, do. Well, at else for the private does. same in can't to open those shareholder of you thing, you difficult opportunities on because a some at structure is If to going We manner, time happen just things. value ours. like combine difficult happen. with when going are want growing shareholder everyone such those to force else to But It's us looking business we're especially they with a the there drive They and we're things sort happen.

the run do and business, to have just trying what to You we're that's now.

line. are also other comp a business, question, growth you My cyclical there is but a

where it So the cycle. maybe a of you little break up can in bit they are

which to cycle you is for products upswing versus which your market So can conditions? be cyclical change do and grow seems going part remain to there part to an basically in the permanently think and you

question. interesting an That's Yes.

have been streamer near I improved to a most upside for see term said business GunLink. the opportunities that's dominant to part think the installations, see has source controller just us. nature. But that, we technology, that I opportunity deliver for Even smaller so business the though business, of think SeaLink replace probably market continue things having for because we we there, existing our position a

I So areas. see opportunity across I think all

concludes our management for the turn session. question-and-answer I'll closing This back comments. to floor

thank early I'd us much. Thanks and you joining to we quarter our when look like for and to very report talking year-end fourth in new today, earnings forward to we everyone the year.

conference today's concludes call. This

You your lines may Thank this at disconnect for participation. you your time.