EPS of $0.06 beat estimates of $0.016 and revenues of $28.11M beat estimates of $27.86M. Sales grew 31%, gross profits were up 32%, with a steady gross margin of 49%. Its product revenue grew 26%, driven by SeaPower subsea batteries. Management plans to expand manufacturing in Nova Scotia to meet growing defense demand, and 2025 revenue guidance is $120M to $135M, around a 40% growth rate. The CEO noted growth in defense and offshore energy sectors. These were strong results, and we are encouraged by its guidance. Shares are not cheap at 52X forward earnings, but its growth rate, margins, and geographic and product expansion are all moving in the right direction. While it is difficult to predict the share price one year out, given its strong sales growth rate of 30%+, in a positive market backdrop, we could see the stock hitting new highs (20%+ from here). We would be comfortable buying PNG today.
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