Ocean Power Technologies Inc (NYSE-A:OPTT) said it is sharpening its focus on defense and international expansion as it works to accelerate revenue growth in 2025.
The company’s backlog surged to $7.5 million, a significant increase from $3.3 million in the same period last year, primarily driven by new partnerships in Latin America, including a $2 million order for Next Generation PowerBuoys and $3 million in WAM-V purchases.
CEO Philipp Stratmann said the company is positioning itself for a stronger revenue pipeline despite macroeconomic and political uncertainty slowing decision-making in some sectors.
“We remain focused on converting backlog into revenue, expanding in key global markets, and driving adoption of our AI-powered maritime solutions,” Stratmann said in a statement.
The firm is expanding in defense contracting and the Middle East. In March, the company participated in the National Defense Industrial Association event to strengthen its role in military operations and hired a sales executive to secure Department of Defense contracts. It is also deepening its presence in the Middle East, showcasing its technologies at NAVDEX in Abu Dhabi with Remah International Group, its UAE distribution partner.
Additionally, the company completed successful offshore exercises in California, demonstrating its WAM-V 22 vehicle's ability to operate autonomously for long durations.
Financial highlights
Ocean Power Technologies reported a narrower fiscal third-quarter loss and sees opportunities to capitalize on rising demand for AI-powered ocean security solutions.
For the quarter ended January 31, 2025, the New Jersey-based firm posted a loss before income taxes of $6.7 million, improving from the $7.8 million loss a year earlier. Operating expenses fell 29% to $6.1 million, as the company tightened spending and streamlined operations.
Revenue declined to $800,000 from $1.8 million, but its backlog more than doubled to $7.5 million, driven by a $5 million order from a new Latin American partner for its Next Generation PowerBuoys and WAM-V Unmanned Surface Vehicles.
“Looking ahead, we remain confident that we will regain momentum, accelerate the conversion of backlog to revenues, and continue executing on our strategic priorities — advancing autonomous ocean security solutions and leveraging AI-powered maritime technologies to meet the evolving needs of our global customers,” Stratmann added.