Coda Octopus Group, Inc.
Coda Octopus Group, Inc. designs and sells underwater sensing, imaging, and digital communications technologies, alongside defense engineering services and acoustic sensors/materials. Its business is split across marine technology, defense engineering, and PAL acoustic materials, serving customers that operate in harsh, mission-critical environments.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueUnderwater imaging, sonar, communications, and related software sold or rented to marine and defense users.
Engineering design and manufacturing services for defense contractors and military programs.
Acoustic sensors, materials, and calibration services sold to industrial and technical customers.
Tailored integration, installation, training, and application-specific support around core products.
Products
Reported · share of revenue- Equipment Sales54.2 %
- Engineering Parts23.9 %
- Services13.2 %
- Equipment Rentals5.6 %
- Software Sales3.1 %
Source: 10-K/A FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.
Customers
The company sells to a mix of offshore, industrial, scientific, public-safety, and defense customers that need underwater visibility, communications, or mission-critical engineering. Its customer base includes offshore service providers, oil and gas companies, renewable energy firms, underwater construction companies, law enforcement agencies, ports, mining companies, underwater vehicle manufacturers, defense bodies, prime defense contractors, navies, research institutes, universities, and diving companies.
Buy engineering sub-assemblies, sonar, and customized systems for mission-critical defense programs.
Buy real-time 3D sonar, DAVD, and survey software for inspection, construction, and operations.
Ports, underwater construction, mining, and diving firms buy tools for underwater visibility and communications.
Research institutes and universities buy imaging, survey, and acoustic products for marine research.
Agencies buy underwater detection and communications systems for search, recovery, and security work.
Strategy
The company is focused on expanding mission-critical underwater technology and defense engineering while tailoring products for specific end markets and applications. It is also using geographic diversification, including a Danish subsidiary, to mitigate trade frictions and maintain access to European customers.
These products are the core revenue engine and support recurring customer relationships in subsea markets.
Defense programs can create long-duration, mission-critical demand and higher switching costs.
The company needs flexible operating footprints to serve EU customers and navigate trade restrictions.
Geography
Q1/2026Coda Octopus operates from the United States, the UK, Denmark, and Scotland-based facilities, with manufacturing, R&D, warehousing, and training spread across these sites. The company also disclosed that export-license restrictions and the removal of China as a trading partner could materially affect Asia revenue, making geography an important demand and regulatory risk factor.
Share of the revenue the company reports by geography.
Risks
The biggest company-specific risk is export-control and customer-access restrictions, especially around China, which management says could significantly reduce Asia revenue. The business also depends on a concentrated set of niche end markets and on successful execution in defense and marine projects, where delays, customer budget shifts, or technical failures can quickly affect demand.
Management disclosed that UK and US government positions have limited licenses for some China end users.
Exposure: Asia revenue and growth strategy
China was described as a major market whose removal would negatively affect revenues and growth.
Exposure: Marine technology sales in Asia
Sales depend on a limited set of offshore, defense, and industrial buyers with project-based demand.
Exposure: Marine technology and defense engineering
The company carries acquired goodwill and intangibles that must be tested for impairment annually.
Exposure: Acquisition accounting and earnings
Accounting
Judgemental itemsThe company sells products, rentals, and services, so timing of recognition affects reported revenue and margins.
Impact: Product sales are generally point-in-time, while services and long-term contracts may be recognized over time.
The company states that income tax purposes use percentage of completion for long-term contracts, consistent with U.S. GAAP reporting.
Impact: Estimates of progress and cost-to-complete can shift revenue and profit timing.
Acquired goodwill and intangibles are tested for recoverability and amortized over useful lives.
Impact: Impairment or revised useful lives can materially affect earnings.
Similar listed companies
Publicly listed companies with a comparable business focus.
Oceaneering International, Inc
OII · Oil & Gas Field Services, NEC
Oceaneering International is a U.S.-based technology and services company organized around offshore energy and non-energy robotics applications.
Tidewater Inc
TDW · Water Transportation
Nauticus Robotics, Inc.
KITTW · General Industrial Machinery & Equipment, NEC
Odyssey Marine Exploration, Inc
OMEX · Water Transportation
Odyssey Marine Exploration is a U.S.-based marine minerals and ocean exploration company focused on identifying, evaluating, and advancing subsea mineral resources.
Datasea Intelligent Technology Ltd
DTSS · Services-Prepackaged Software
Ondas Inc.
ONDS · Radio & Tv Broadcasting & Communications Equipment
Last updated: 24/09/2026