Ocean Power Technologies Inc (NYSE-A:OPTT) highlighted a growing pipeline of defense and marine opportunities on Wednesday as it reported preliminary results for the third quarter ended Jan. 31, pointing to a growing backlog and new U.S. government work that could support future hiring.
The company said its backlog as of Jan. 31 rose to about $19.9 million, up 165% from a year ago, while its project pipeline expanded to about $163.9 million, an 84% increase from the $89.2 million reported at the end of October.
Ocean Power expects to report its full third-quarter results after the market closes on March 17.
A key contributor to the retreat is a nearly $6.5 million contract for the US Department of Homeland Security’s maritime domain awareness mission that supports the US Coast Guard out of San Diego. The program will deploy four newly built MERROWS-equipped PowerBuoy systems beginning in the fourth quarter of fiscal year 2026.
The project is being carried out with defense technology company Indoreel Industries, which is acting as the prime contractor. Ocean Power said the deployment integrates its Powerbuoy systems with Andorel’s monitoring infrastructure, potentially opening the door to additional buoy deployments and wider geographic expansion.
The company said the contract offers multi-quarter revenue outlook and aligns with its strategy to move to higher margin and recurring revenue streams associated with national security and continuous maritime surveillance.
For the third quarter, Ocean Power expects revenue of $400,000 to $600,000, compared to $800,000 in the same period last year.
The net loss is expected to be between $11.3 million and $11.5 million, while cash used in operating activities will be less than $20 million.
The company is also developing an autonomous docking and charging platform that allows unmanned maritime systems to dock, charge and redeploy during shore missions. Ocean Power targets the first access commercial launch of the system in 2026.
