Ocean Power Technologies Inc (NYSE-A:OPTT) on Wednesday outlined a growing pipeline of defense and maritime opportunities as it reported preliminary results for the third quarter ended January 31, pointing to rising backlog and new US government work that could support future deployments.
The company said backlog rose to about $19.9 million as of January 31, up 165% from a year earlier, while its project pipeline expanded to roughly $163.9 million, an 84% increase from the $89.2 million reported at the end of October.
Ocean Power expects to file its full third-quarter results after market close on March 17.
A key contributor to the backlog is a roughly $6.5 million contract tied to a maritime domain awareness mission for the US Department of Homeland Security supporting the United States Coast Guard off San Diego. The program will deploy four newly built MERROWS-equipped PowerBuoy systems beginning in the fourth quarter of fiscal 2026.
The project is being carried out with defense technology firm Anduril Industries, which serves as the prime contractor. Ocean Power said the deployment integrates its PowerBuoy systems with Anduril’s surveillance infrastructure, potentially opening the door for additional buoy deployments and broader geographic expansion.
The company said the contract offers multi-quarter revenue visibility and aligns with its strategy to shift toward higher-margin and recurring revenue streams tied to national security and persistent maritime monitoring.
For the third quarter, Ocean Power expects revenue in the range of $400,000 to $600,000, compared with $800,000 in the same period a year earlier.
Net loss is anticipated to be between $11.3 million and $11.5 million, while cash used in operating activities is expected to be less than $20 million.
The company is also advancing an autonomous docking and charging platform designed to allow unmanned maritime systems to dock, recharge and redeploy during offshore missions. Ocean Power is targeting an early-access commercial launch of the system in calendar 2026.