Aug 20, 2026 earnings call — Record quarter and defense-driven growth
Record fourth-quarter revenue of $114.4 million, up 18.3%, and free cash flow of $17.2 million.
Revenue $0.1B (est $0.1B) · EPS $0.64 (est $0.23)
Key quotes
"As of year-end, defense comprises 17% of our total backlog, representing a 56% increase year-over-year."
"Oil and gas also performed well in the quarter and is trending positively as we prioritize e-frac opportunities that drive a higher margin profile."
"Both our 6-month and total backlog remains strong and are supported by a robust project pipeline and considerable sales momentum in the markets we serve."
Analyst Q&A 2
Finland facility timing and Racine capacity
Q (Maxwell Michaelis · Lake Street): He asked for a Finland facility update and timeline. He also asked how capacity is looking at the Racine plant.
A: Management said Finland has broken ground and they expect to be enclosed and start moving in by the end of the calendar year, but being fully operational likely won’t occur until fiscal '28. For Racine they are staffing up, adding machinists, buying new machine tools, and considering expanding second and third shifts. They also said they are moving some ARFF transmission work to Lufkin to free Racine capacity for marine and other markets.
"We had two significant capital purchases that have come in, a 1.2-meter hob and a 1.2-meter grinder." — John Batten (CEO)
Oil & gas share, e-frac, military pipeline, CapEx
Q (Tze-Kiang Wong · Gabelli Funds): He asked how big the oil and gas business is this quarter versus last year, and whether they sold any e-frac units. He also asked how much of the military pipeline they expect to win, how big the military business was in Q4 fiscal '26, and what CapEx is for fiscal '27.
A: They said oil and gas is ramping and was about 10%, a little over 10% of overall revenue in the quarter, the biggest since fiscal '24 in percentage terms. On e-frac units, they confirmed yes—about two spreads delivered and more coming, though exact timing/detail wasn’t given. They said their military pipeline wins are conservatively estimated and they think they have a better than 50-50 shot of winning those opportunities, but they do not yet have a clear aggregate number for military revenue; CapEx for fiscal '27 is expected to be north of $20 million.
"It was about 10%, a little over 10% of overall revenue in the quarter." — Jeffrey Knutson (CFO)