Ocean Power Technologies sees expanding defense demand as backlog and pipeline grow

Ocean Power Technologies Inc (NYSE-A:OPTT) connected Wednesday outlined a increasing pipeline of defence and maritime opportunities arsenic it reported preliminary results for the 3rd 4th ended January 31, pointing to rising backlog and caller US authorities enactment that could enactment aboriginal deployments.

The institution said backlog roseate to astir $19.9 cardinal arsenic of January 31, up 165% from a twelvemonth earlier, portion its task pipeline expanded to astir $163.9 million, an 84% summation from the $89.2 cardinal reported astatine the extremity of October.

Ocean Power expects to record its afloat third-quarter results aft marketplace adjacent connected March 17.

A cardinal contributor to the backlog is simply a astir $6.5 cardinal declaration tied to a maritime domain consciousness ngo for the US Department of Homeland Security supporting the United States Coast Guard disconnected San Diego. The programme volition deploy 4 recently built MERROWS-equipped PowerBuoy systems opening successful the 4th fourth of fiscal 2026.

The task is being carried retired with defence exertion steadfast Anduril Industries, which serves arsenic the premier contractor. Ocean Power said the deployment integrates its PowerBuoy systems with Anduril’s surveillance infrastructure, perchance opening the doorway for further buoy deployments and broader geographic expansion.

The institution said the declaration offers multi-quarter gross visibility and aligns with its strategy to displacement toward higher-margin and recurring gross streams tied to nationalist information and persistent maritime monitoring.

For the 3rd quarter, Ocean Power expects gross successful the scope of $400,000 to $600,000, compared with $800,000 successful the aforesaid play a twelvemonth earlier.

Net nonaccomplishment is anticipated to beryllium betwixt $11.3 cardinal and $11.5 million, portion currency utilized successful operating activities is expected to beryllium little than $20 million.

The institution is besides advancing an autonomous docking and charging level designed to let unmanned maritime systems to dock, recharge and redeploy during offshore missions. Ocean Power is targeting an early-access commercialized motorboat of the strategy successful calendar 2026.