On Tuesday, Metatek-Group (TSX:MTEK) discussed fourth-quarter financial results during its earnings call. The full transcript is provided below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
The full earnings call is available at https://www.gowebcasting.com/events/metatek-group-ltd/2026/03/31/fourth-quarter-and-fiscal-year-2025-results-conference-call/play
Full Transcript
Mark
The momentum we’ve seen is reflected in the growth of our Adjusted Backlog. Since early March, Adjusted Backlog has increased by approximately 23 million USD to around 69 million. Importantly, that increase was driven primarily by repeat business with an existing nation state customer in Africa. That’s a pattern we see consistently. Clients typically begin with a regional survey, then return to high grade priority areas and over time the work evolves into broader multi year programs. To date, every customer we’ve worked with has signed up for repeat work and our Adjusted Backlog continues to provide visibility into what we expect to convert over the next 12 to 18 months. Our results are driven primarily by how we deploy and sequence capacity rather than by underlying demand. Therefore, growth in the business is not linear. Through the year, activity builds as systems are deployed and projects progress, which means results tend to be weighted towards the middle and back half of the year in early 2026. That dynamic reflects deployment timing and external factors. Our second system, the DFTG system, was deployed during the second half of Q1 to its first customer, contracted in the UAE and operated as planned, completing approximately 12% of the scheduled data acquisition before the project was paused due to regional events. We have now agreed with a client to return once conditions are low, and in the meantime, the DFTG system is being redeployed to another region with its next project expected to begin in the second quarter. Importantly, this kind of flexibility is fundamental to how we operate the business as we routinely move capacity across regions and as conditions evolve. The ability to redeploy systems, manage risk and keep assets productive across regions is exactly how we nearly doubled our revenue in 2025. To summarize, fiscal 2025 was the year Metatek-Group showed that its operating model works at scale, and this model is ready to be expanded today. Demand is not the constraint. Capacity is. With two instruments now in the field and a growing backlog driven by repeat soaring customers, the opportunity ahead is about execution and scaling that capacity against sustained demand. Through our recent IPO, we successfully raised the capital we set out to raise, giving us exactly what we need to execute our plans. That capital strengthens our balance sheet and allows us to accelerate deployment, add capacity, and convert backlog in a disciplined way as the business scales. With that, I’ll turn it over to Nick., who will walk through the financial results in more detail, discuss capital allocation, and provide additional color on geographic performance, margins and costs. Nick.
Nick
thanks Mark. I’ll spend a few minutes walking through the financials, but rather than running line by line through the income statement, I wanted to focus on what actually mattered during 2025, what drove the results, what changed structurally in that business, and how that sets us up for future Full-year revenue for 2025 was 23.7 million, up 99% year over year. From a geographic standpoint, the mix shifted materially through the year. Approximately 59% of revenue was generated in Southeast Asia compared with 2024 when Africa represented 58% of revenue. That shift reflects the greater diversification of our client base and the expanding number of regions where we’re executing sovereign level programs. What 2025 clearly demonstrated is the revenue generating capacity of a single system when it’s deployed consistently against sufficient backlog. Almost 90% of the 23.7 million revenue was generated by the ESTG alone, operating across multiple regions over the course of the year at steady utilization. One system is capable of generating in the order of 20 to 25 million of annual revenue depending on project mix and operating conditions. And that’s not theoretical, that’s what we delivered in practice in 2025. Looking specifically at the fourth quarter, revenue was 7.5 million, up 69% year over year, driven primarily by work in Southeast Asia. That included project activity across Malaysia and Singapore and illustrates our ability to work across multiple nation state customers within a region and keep a system productively deployed as projects move through different phases. Achieving this level of income with one system is important because it shows how the business grows from here. As we move into 26 and 2027, growth is driven less by changing the model, but more by adding capacity. The DFTG as Mark described is now in service, having deployed recently in the second half of Q1 and our older ISTG instrument, which is currently being refurbished by Lockheed Martin and is capable of adding further revenue capacity of a similar order of magnitude is targeted for deployment at the beginning of 2027. Moving down the income statement, gross profit for the year was 14.2 million, or 60% of revenue, compared to 51% for the prior year and for the fourth quarter represented 62% of revenue. The margin expansion is primarily a function of scale and utilization, and we are pleased to have gross profit margins already at our long term operating target. It’s also worth noting that gross profit reflects the direct operating cost of running the aircraft and instruments, including crews, logistics, insurance and maintenance required to keep those assets productive in the field. In addition, certain projects executed through local partners, including work in Nigeria, carry a different cost structure where some in country costs are borne by the partner. In those instances, cost reported revenues are lower, but our gross margins are higher. Adjusted EBITDA for the year was 9.2 million, representing an adjusted EBITDA margin of 39% compared with 18% in 2024. For the fourth quarter, adjusted EBITDA margin was 44%. …
This post was originally published here
