Ocean Power sales pipeline surpasses $150 million as NATO and U.S. Military evaluations advance

since last year for Rep Muse. uh so it's a a very large NATO exercise and we're working directly with the the US contingent. Um and it's allowed us to take our uncrude surface vehicles, so our surface drones and put them directly in the hands of the sailors and the Marines.

Right, welcome back inside our Proactive news room and joining me now is Tracy Palaro is the CEO of Ocean Power Technologies. And Tracy, it's nice to see you. How are you?

I'm doing great, thanks.

Good. and also joining us, yeah, good to have you along. and also joining us is your chief operating officer Jason Weed. and Jason, nice to see you as well.

Yeah, thanks Steve, really appreciate the time.

Yeah. So Tracy, you're uh you're you're new into the role, you're the acting CEO so to speak and so really uh spelling a new direction for Ocean Power Technologies.

Really, um, we're uh we're excited about the uh the environment we operate in today. It's uh very dynamic, very exciting. Uh, we see um lots of opportunity, particularly in um our defense and security market uh which Jason will elaborate on a little bit more in in in a minute. but uh uh, we've got, you know, we've got uh pipeline, um qualified pipeline, uh that's that's going up. Um, our backlog is um is 20 million. uh and uh we are um really on the verge of um you know, breaking out uh and having some uh big orders come in.

And I'll uh, maybe I'll let Jason elaborate a little bit more on that.

Yeah, because Jason, you there's been a couple of big pieces of news this week uh and and a lot of that is in the defense sector. Uh let's talk about the first one and that is Repmus 2026, an opportunity for you to work with the the US Navy and the Marine Corps as well. and I know you have a background in the military, so these are this is an area you know quite well.

Yeah, thanks Steve. Yeah, that we've uh, we've been prepping since last year for Rep Muse. uh so it's a a very large NATO exercise and we're working directly with the the US contingent. Um and it's allowed us to take our uncrude surface vehicles, so our surface drones and put them directly in the hands of the sailors and the Marines.

And so it's been a great opportunity for us to grow over the last year as I I worked on the sales side of things to develop these opportunities and then now see the maturity of the operations team being able to execute. Um we've been able to get quite a few first as well. So we were able to fully integrate all of our systems. So we have three different classes of uncrude surface vehicles, so an 8 foot, a 16 foot and a 22 foot vehicle. And we were able to integrate all three of those into the Navy's common control software. So they were able to actually command control and operate all three of our platforms uh throughout the exercise executing mine counter measures, uh ISR and surveillance and security, uh and also uh other opportunities that the team came up with uh to go execute different missions as they came up. And then we also were able to integrate into the larger NATO portion of those exercises. Uh so it's a great opportunity one to work directly with the Navy, but also with the Navy team who was also evaluating uh and giving an official evaluation uh, you know, for the Navy, which as as you had mentioned earlier, like allows us to have that growth uh in with the the defense customers.

Yeah. And on the other side, the US Army Corp of engineers has been doing some work with you as well and this is on those uh those surf zone conditions and the challenge sometimes of of getting to there. So this is a a really unique part of what the company can provide.

Yeah, it was great. We didn't know whether we were going to be able to participate because we were so heavily uh involved with Rep Muse, but we worked with the team down in Duck, North Carolina. We got a team together. We did some initial workups and preparations off the coast of California uh and then came over to the East Coast and we were able to work for three days directly with the the Army Corp of engineers and and that entire team and they came through and it was an official evaluation as well.

Uh, you know, it was great to actually have, we had some pretty sporty surf uh the first couple days and so we were all able to prove not just the vehicle was able to operate, but we were also able to bring a very high quality sensor uh to that problem set. And um, you know, we're looking forward to uh additional opportunities to work with the Army Corp of engineers. So again, we're really looking and focusing on uh, you know, specific customer sets and working to optimize our systems to be successful with those customers.

And Tracy, this is such an important part for the company uh of showing what the what your your vehicles can do and and and sort of getting the new clients but also while clearing that backlog as well. The sort of the show me contract so to speak.

Exactly. And uh, you know, I um uh I want to applaud our team. uh we did well, extremely well at both Rep Mus and in uh uh Duck, North Carolina and proving out the uh the capabilities of our of our WAMVs. Um we think that, you know, is a speaks uh volumes for the potential for the products to uh you know, be of of use to to other customers both uh not just in defense but but also in in for other applications.

Yeah. And lastly Tracy, is it the importance of you is to is to clear the backlog as quick as possible and and then sort of fill that up with the new sales of things like this. Is that is that how the plan's going to work moving forward?

It is. We also are uh very bullish on our um our power buoys. Um we we're receiving a lot of interest uh with that product. Um, of course we had the, you know, earlier in the year, the DHS contract where we placed uh four buoys um with uh the Coast Guard and uh but we've um, you know, we we we're seeing on that side of the business the opportunity to um grow that backlog as well. But um, yeah, we're we're certainly keen on uh converting the existing backlog to revenue. Um, you know, our our our our qualified pipeline is over 150 million. So, you know, we have uh uh plenty of opportunity to to convert pipeline to backlog, to replenish the backlog that uh that we anticipate will be moving through the system for the duration of the year, our fiscal year, which ends April 30th.

Yeah, well it's going to be a busy one for sure. You got lots on the go. Uh Jason, thanks so much for being here. I really appreciate it. good to talk to you.

Yeah, thanks Steve. Greatly appreciate the opportunity.

Yeah, and Tracy, always great to see you as well. Thank you very much.

All right, thank you.

All right, there's Tracy Palari, the CEO and Jason We, chief operating officer for Ocean Power Technologies.