Ocean Power Technologies Inc (NYSE-A:OPTT) is expected to cap off a strong 2024 with reduced losses and commercial growth opportunities, according to analysts at Water Tower Research.
The manufacturer of the Wave Adaptive Modular Vessel (WAV) recently stated its guidance of achieving profitability by the fourth quarter of 2025.
OPT’s military contracts and commercial growth will fuel its profitability push, Water Tower Research noted.
A glimpse at its preliminary fiscal second quarter results, released earlier in December, show the company has taken strides to reign in operating expenses and improve cash management.
The firm has projected a significant revenue increase for the second quarter of fiscal 2025, expecting over $2 million compared with $0.9 million in the same period last year.
The company's net loss is anticipated to narrow to approximately $4.0 million, a marked improvement from the $7.2 million loss reported in 2QFY24, driven by a 40% reduction in operating expenses and higher revenues.
Cash flow used in operations is also forecasted to decline by 40% to less than $4.7 million, reflecting improved financial management, Water Tower noted.
Analysts highlighted several operational achievements, including completing the second phase of a U.S. Navy contract under Project Overmatch, which involves deploying autonomous vehicles to advance naval capabilities. OPT also expanded its commercial footprint, delivering survey vehicles to clients in Latin America and securing a multi-year service contract.
On the infrastructure front, the company received final permits for a 5G-enabled PowerBuoy installation in Monterey Bay, bolstering its technological capabilities.
Looking ahead, OPT reaffirmed its commitment to achieving profitability by the fourth quarter of fiscal 2025, citing robust product demand, disciplined cost management, and strategic partnerships as key drivers.
OPT is set to release its full 2QFY25 results on December 16.