A prior question on the Q expectations you had indicated...'Revenue expectations are $39.36 mln for the quarter'..... but it looks like the 'Consolidated revenue for the quarter was flat at $28.4 million.'
Is this a concern? Or is there a difference between 'consolidated' and 'revenue'?
The forward guidance without the new acquisition looks good and probably even better with the acquisition (to be announced post completed acquisition).
Do you see any obstacles with the potential acquisition, ie anything that might prevent it?
I have owned the stock since about 18-24 months...and I thank-you for the suggestion!!!
cheers,
Steve
EPS of $0.0 missed estimates of $0.028 and sales of $28.39M missed estimates of $29.27M - there is no difference between consolidated revenue and revenue. It is a small stock and very few analysts cover it, so the estimate numbers can vary a lot and different sources or methodologies can indicate different estimate figures. With that said, Q4 is typically a strong seasonal quarter for PNG due to product order timing, but the flat result was driven by lower RMDS (Canadian Navy project) sales as that program winds down. Its adjusted EBITDA grew year-over-year, and it is seeing a shift to higher margin sales. It noted strong 2025 demand for battery and sonar products, with new customers, and it is increasing its battery manufacturing capacity and it is working on a higher energy density battery. For 2026 sales it expects $165M to $175M and Adjusted EBITDA of $40M to $50M.
On the acquisition, the most realistic risk is a delay rather than an outright block, as there are no obvious competition concerns given the complementary nature of the two businesses. We think the deal closes on schedule, and we think it helps to deepen its product offerings by entering into the underwater navigation space, rather than just batteries and sonar systems. We would not view the revenue miss as a structural concern, and it is holding up fairly well. It trades at a high valuation, so we could see some profit taking at any time, but we believe the tailwinds are firmly in place: underwater autonomous systems have a long runway, global defense spending is rising and of increasing importance, and PNG is seeing margin expansion and continues to expand its product offerings and manufacturing capacity.