Genasys begins construction on 9 Puerto Rico dam warning systems

SAN DIEGO - Genasys Inc. (NASDAQ:GNSS), a protective communications firm with a market capitalization of $74 million, has started physical construction on 9 of 19 approved dam sites as part of its $75 million contract to build an Emergency Warning System (EWS) for Puerto Rico’s dams, the company announced in a press release. According to InvestingPro analysis, the stock appears undervalued at its current price of $1.64.

The protective communications firm has received the full deposit for the third group of dams in the project, which aims to protect residents and visitors downstream of the island’s 37 dams. Hardware for the first two groups has been delivered to Puerto Rico.

The company has recognized $5.6 million in project-related revenue for fiscal 2025 to date, according to preliminary projections based on percentage-of-completion accounting. This project could significantly impact the company’s revenue trajectory, as InvestingPro data shows current annual revenue of $27.8 million. While analysts anticipate sales growth, InvestingPro identifies cash burn as a potential concern.

Construction is underway on all six dams in the first group, located in the hills around San Juan. This cluster will require dozens of cameras and sensors integrated into the Genasys EWS, with 50 sites planned for outdoor speaker and communication arrays. The company reported that implementation of the first dam’s system has been completed and received sign-off from PREPA officials.

The second group includes three dams located above Cayey, Patillas, and Guayama, with construction in progress at all sites.

The third group, described as the largest and most complex, encompasses more than 10 dams and will require 50 outdoor speaker arrays and over 100 sensors and cameras. Construction on this group is expected to begin later in August.

The project represents a significant contract for Genasys, which specializes in protective communications systems. According to the press release, the company’s technology currently covers more than 155 million people across all 50 U.S. states and over 100 countries worldwide. For deeper insights into GNSS’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 8 additional ProTips and detailed valuation metrics in the Pro Research Report.

In other recent news, Genasys Inc reported its third-quarter 2025 financial results, showcasing a mixed performance. The company achieved a revenue of $9.9 million, which exceeded forecasts by 8.08%. However, its earnings per share (EPS) did not meet expectations, coming in at -$0.14 compared to the anticipated -$0.11. These results reflect a combination of surpassing revenue targets while falling short on earnings predictions. The mixed results were part of the company’s latest earnings call, providing investors with insight into its financial health. Despite the earnings miss, the company’s revenue performance indicates potential areas of strength. Analyst reactions and further developments in the company’s strategy may be of interest to investors in the near future.

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