Ocean Power Technologies Inc (NYSE-A:OPTT) CEO Philipp Stratmann talked with Proactive about the company’s first shipment under its $6.5 million contract with the US Department of Homeland Security, marking a major operational milestone.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Philipp Stratmann, CEO of Ocean Power Technologies. Philipp, it’s always great to see you. How are you today?
Philipp Stratmann: Doing well, thanks for having me on again.
You’ve announced news about the first shipment of your PowerBuoy system under contract with the US Department of Homeland Security. This is part of a $6.5 million contract we’ve discussed before. This first shipment is a big milestone.
Yes, it’s a major milestone. Earlier in January we announced the contract award, and just a couple of weeks ago we confirmed the full deployment contract. Now we’re already shipping the first system, with the second ready for shipment and others to follow soon.
I think it shows that we generate demand, convert that into backlog, and then quickly ship and convert it into revenue. It’s exciting to see these systems moving out and being used operationally as designed.
It also highlights the importance of ocean security, especially given recent global events. Are you seeing increased inbound interest?
Absolutely. We’ve been saying for years that ocean security is national security. Current global events are making people realize how dependent everyday life is on secure oceans where shipping can flow freely.
To achieve that, you need visibility into what’s happening at sea. Our systems are designed for that. Whether in California, the Middle East, or elsewhere, this is part of solving the broader challenge of identifying and addressing threats that impact global shipping.
If there is insufficient awareness of what’s happening in the ocean, it can materially impact commercial shipping—not just military operations.
Do you actively manage inventory and fleet size to anticipate demand?
Absolutely. It’s a balance between having the right level of inventory and fleet size available while not tying up unnecessary working capital.
We’re continuing to build out buoy inventory and expand our USV fleet so we can deploy quickly for customers. As you’ve seen, we secured the order in early January and within 10 to 12 weeks we’re already shipping systems for deployment.
It sounds like a busy 2026 ahead. Philipp, great to catch up and congratulations on the milestone.
Thank you. Good to be on.
Quotes have been lightly edited for style and clarity