Ocean Power Technologies (OPT) secured a $1.5 million purchase order from the U.S. Coast Guard on February 24 2026 for the installation and deployment of its buoy systems. The order completes the acquisition cycle for buoys that were previously ordered and will generate near‑term revenue as deployment, commissioning and operational activation activities begin.
The contract underscores OPT’s expanding focus on defense and security markets and aligns with the U.S. Department of Homeland Security and Department of Defense’s updated doctrine to strengthen homeland defense. By delivering the buoy systems, OPT will support the Coast Guard’s maritime security missions and reinforce its position as a provider of autonomous maritime solutions.
OPT’s recent financial performance highlights the significance of the contract. In the second quarter of fiscal year 2026, the company reported a GAAP earnings per share of –$0.06, missing estimates by $0.04, and revenue of $0.4 million, short of expectations by $2.11 million. Operating and gross margins were deeply negative, reflecting ongoing profitability challenges. The new contract will contribute to near‑term revenue, but the company’s broader financial health remains a concern as it continues to invest heavily in defense‑related capabilities.
Jason Weed, OPT’s Senior Vice President of Commercial Sales, said, "OPT’s expanding focus on defense and security has enabled us to engage more deeply with our customers, gain a clearer understanding of their evolving mission challenges, and deliver innovative solutions that were previously unavailable. This strategic emphasis is directly aligned with the updated doctrine of the U.S. Department of Homeland Security and the U.S. Department of Defense to further strengthen Homeland Defense." CEO Philipp Stratmann emphasized disciplined execution and the advancement of core capabilities for scalable, persistent maritime autonomy for defense and commercial customers.
Investors reacted cautiously to the announcement. While the contract represents a positive development, the company’s recent earnings miss and negative margins tempered enthusiasm, leading to a modest decline in investor sentiment.
The buoy contract is a key milestone in OPT’s defense strategy, but the company must continue to address its profitability challenges. Successful execution of this order could pave the way for additional defense contracts, yet the company’s financial trajectory will depend on its ability to convert contract wins into sustainable earnings growth.
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