OSI Systems wins $54 million CBP contract for border security platform

HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a $3.98 billion market cap company whose stock has surged over 62% in the past year, announced Monday that its subsidiary S2 Global has been awarded a five-year contract from U.S. Customs and Border Protection (CBP) for its Non-Intrusive Inspection Common Integration Platform program. The initial contract value is approximately $1.5 million with a total potential value of approximately $54 million. According to InvestingPro analysis, the company maintains strong financial health with liquid assets exceeding short-term obligations.

The program aims to enhance national border security through the implementation of the company’s CertScan platform, which is designed to accelerate cargo screening processes and improve operational efficiency at border crossings.

"Our team is proud to be providing CertScan software to accelerate inspections for CBP," said Jonathan Fleming, President of S2 Global, in a press release statement.

The CertScan platform is expected to establish a unified inspection and business intelligence system for CBP officers, potentially enhancing officer productivity and enabling real-time data sharing within and across borders. The company noted that the software is already in use at various U.S. CBP border crossings and in 19 countries worldwide.

According to the announcement, the platform is intended to support CBP’s strategic goals by modernizing inspection capabilities to facilitate secure, legitimate trade and travel while strengthening collaboration across CBP, the Department of Homeland Security, and other stakeholders.

OSI Systems designs and manufactures specialized electronic systems for critical applications across security, optoelectronics and manufacturing, and healthcare sectors. With annual revenue of $1.71 billion and 11.3% year-over-year growth, the company serves customers in more than 170 countries. For detailed insights and additional analysis, including 7 more exclusive ProTips, visit InvestingPro.

In other recent news, OSI Systems reported its fourth-quarter fiscal 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $2.84, missing the forecasted $3.19, and revenue came in at $480.91 million, below the anticipated $496.46 million. Despite these results, Oppenheimer raised its price target for OSI Systems to $270 from $260, maintaining an Outperform rating, highlighting strong performance in the Security and O&M segments. Additionally, OSI Systems secured a $23 million order for non-intrusive inspection systems for border checkpoints and a $26 million order for RF-based threat detection systems. Both contracts were awarded to the company’s Security division, which focuses on advanced inspection systems. These developments reflect ongoing efforts to enhance infrastructure and public safety through advanced technology.

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