Puerto Rico's Shield: Genasys Nears Milestone in $75M Dam Safety Project

SAN DIEGO, CA – January 13, 2026 – By Alexander Harris

Genasys Inc. (NASDAQ: GNSS) has announced substantial progress on its landmark $75 million project to create a comprehensive Emergency Warning System (EWS) for the 37 dams managed by the Puerto Rico Electric Power Authority (PREPA). The update signals a critical step forward in a multi-year effort to shield hundreds of thousands of residents from the ever-present threat of catastrophic dam failure, a fear seared into the island's memory by the near-collapse of the Guajataca Dam after Hurricane Maria in 2017.

That event, which forced the frantic evacuation of 70,000 people amid widespread communication blackouts, served as a stark catalyst for change. It exposed the profound vulnerability of the island's aging infrastructure and the desperate need for a modern, resilient public safety network. This ongoing project, fully funded by the U.S. Federal Emergency Management Agency (FEMA), represents a direct response to that crisis, aiming to replace uncertainty with proactive, life-saving information.

A Phased Rollout Across Challenging Terrain

The complex undertaking, which began its implementation phase in early 2025, is structured into seven distinct groups of dams. According to the latest update from Genasys, the first two groups have been successfully completed. In a sign of confidence and evolving needs, PREPA has already requested additional capabilities for these initial sites, for which Genasys will receive further compensation.

Field activities are now in full swing for the project's third and most complex phase. This group alone involves ten dams and the immense logistical challenge of installing 50 outdoor speaker arrays and over 100 sensors and cameras. Genasys confirmed that all the necessary hardware and equipment for this pivotal stage are already on the island, paving the way for accelerated installation.

The project's technological backbone is the Genasys Protect platform, an integrated system of software and hardware. It combines the company's signature Long Range Acoustic Device® (LRAD®) speaker arrays—capable of delivering exceptionally clear voice commands over long distances—with a network of real-time sensors and cameras. This network is designed to detect threats like rising water levels or seismic activity and instantly disseminate targeted alerts and instructions to communities downstream.

Work has also officially commenced on the fourth group of eight dams following the receipt of a multimillion-dollar deposit. This phase presents its own unique set of obstacles, as the dams—including Dos Bocas, Caonillas, and Guayo—are situated in the mountainous west-central interior, a region known for its difficult access and rugged terrain.

“With our recent receipt of the multimillion-dollar deposit, site surveys and engineering design activities have started and will continue over the next few months,” stated Richard Danforth, CEO of Genasys. The company's systematic, phased approach is crucial for managing the engineering and logistical hurdles of deploying sophisticated technology across Puerto Rico’s diverse geography.

A High-Stakes Contract and a Path to Resilience

The $75 million contract is a cornerstone of Genasys's current business operations, representing a significant portion of its revenue and backlog. The project has been a primary driver of the company's 69.8% year-over-year revenue growth reported for fiscal year 2025. However, the financial structure of the contract means that significant profit margins are back-loaded. Initial revenue has been recognized largely on a cost basis as hardware is delivered, with profitability expected to increase substantially as the more lucrative installation and implementation phases are completed.

This dynamic is reflected in the company's recent financial performance. While revenues are climbing, Genasys has faced profitability challenges, reporting an operating loss for fiscal 2025. The successful and timely execution of the Puerto Rico project is therefore paramount not only for the safety of the island's residents but also for bolstering investor confidence and demonstrating the company's ability to manage large-scale, complex government contracts.

Analysts view the project as a key indicator of the company's market leadership in the protective communications sector. Successful completion would solidify Genasys's reputation and serve as a powerful case study for similar infrastructure-hardening projects worldwide.

The project is more than an infrastructure upgrade; it is a fundamental shift in Puerto Rico's approach to disaster preparedness. The system is designed to create an integrated safety net, ensuring that warnings are no longer lost in the chaos of a natural disaster. By providing PREPA with a centralized command and control platform, the EWS will enable authorities to monitor all 37 dams simultaneously and communicate directly with at-risk populations.

“Engagement level remains strong across PREPA and all involved stakeholders,” Mr. Danforth added. “We are on track to execute the next phases, including the final three groups, and expect the project to be completed in 2027 with the majority of the work taking place this year.”

As installation crews continue their work across the island's mountains and valleys, each newly installed speaker and sensor brings Puerto Rico one step closer to closing a chapter of vulnerability and beginning a new one defined by resilience and readiness.