Geospace Technologies Corporation has announced a restructuring of its operations, effective fiscal year 2025, into three new business segments: Smart Water, Energy Solutions, and Intelligent Industrial. This realignment aims to better reflect the company’s ongoing diversification efforts, replacing the previous segments of Oil and Gas Markets, Adjacent Markets, and Emerging Markets, which were established in 2018 following a series of acquisitions.
Financial reporting for the new segments will begin in the first quarter of fiscal year 2025. The Smart Water segment focuses on expanding the company’s presence in the water management sector, featuring successful products like the Hydroconn® smart water connectivity solutions and Aquana offerings. This initiative is supported by U.S. Federal funding, including $7.5 billion from the Water Infrastructure Finance Act for water infrastructure projects. Over the past decade, Geospace has experienced a 400% increase in sales of its patented Hydroconn connector cables used in Automated Meter Reading (AMR) applications, which facilitate remote data collection from utility meters. The Aquana remote water shut-off valves further enhance operational control without requiring personnel in the field, meeting rising demand for advanced water management technologies in municipalities and multi-family residences.
The Energy Solutions segment will encompass Geospace’s traditional offerings in oil and gas exploration, reservoir monitoring, and will also include emerging energy solutions and microseismic monitoring. This segment integrates energy-related products from Quantum’s SADAR line and associated analytics. Recognizing the volatility in the oil and gas sector, the company aims to diversify its revenue streams while continuing to invest in innovative exploration and monitoring technologies. In fiscal year 2025, Geospace plans to introduce its new shallow water node, Mariner™, into the rental fleet, alongside the recently launched ultralight Pioneer™ land node, designed to meet growing demand for high-performance, cost-effective seismic technology. Notably, the current Oil & Gas Markets segment secured two sales contracts totaling $41.9 million and a rental contract for $10.5 million during the nine months ending June 30, 2024.
The Intelligent Industrial segment will carry forward much of the business from the former Adjacent Markets segment, focusing on industrial sensors, electronic pre-press solutions, and specialized contract manufacturing. Additionally, the defense and security applications from Quantum will be incorporated into this segment.
Richard (Rich) Kelley, incoming CEO and President, stated, “Establishing a clear strategic vision is crucial for the company’s future. We aim to provide innovative, technology-driven solutions that empower our customers. After collaborating closely with the management team, we believe this is the right time to align our business segments to enhance revenue potential. For instance, we foresee growth in the new Energy Solutions segment through the application of Quantum’s SADAR products and analytics. In the Intelligent Industrial segment, we plan to leverage our expertise in predictive analytics to expand in the Industrial IoT market and enhance our smart technology offerings, particularly in infrastructure and asset monitoring. The Smart Water segment will pursue organic growth in Hydroconn cables, market development for Aquana products, and strategic acquisitions.
