OSI Systems (OSIS) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Business overview and structure

• Operates in three divisions: security, optoelectronics, and healthcare, with security as the largest by revenue and profit.

• Security focuses on detection at ports, borders, and airports, with a growing recurring revenue stream and event security for major global events.

• Optoelectronics supplies sensors and components to OEMs across diverse industries and supports internal vertical integration, enhancing margins and supply chain control.

• Healthcare provides patient monitoring and cardiology equipment, with about half of revenue recurring in nature.

Security division growth and outlook

• Recent growth driven by large international contracts, notably in Mexico, totaling about $900 million for fiscal 2024 and 2025.

• Backlog has increased due to strong bookings, with future growth expected to shift toward U.S. domestic opportunities, especially border initiatives.

• Substantial orders anticipated from U.S. Customs and Border Protection, supported by the "One Big Beautiful Bill" and the Golden Dome program.

• Company historically wins 40–45% of CBP awards and expects to maintain or grow this share.

Competitive and technological differentiation

• Faces limited competition, mainly from Leidos and Smiths Detection, but differentiates by offering a broad range of technologies and combinational solutions.

• Early adopter of AI, integrating it into products and investing in R&D for future advancements and cybersecurity.