Dragonfly Energy Holdings Corp. announced a new OEM partnership with World Cat, the world’s largest power catamaran manufacturer, to equip the company’s flagship 400DC‑X Island dual‑console model with Dragonfly’s Battle Born battery system. The 400DC‑X Island will feature a 540 Ah lithium power system and a dedicated AC inverter, providing reliable hotel loads for long‑haul offshore operations and positioning Dragonfly as a key supplier for high‑performance marine vessels.
The deal builds on the successful deployment of Dragonfly’s GC3 batteries in World Cat’s 325 DC line and represents a standard‑equipment contract for a flagship vessel. By adding this high‑margin, long‑term revenue stream, Dragonfly is accelerating its transition from consumer‑direct sales to predictable OEM partnerships—a strategy that drove a 44.3% year‑over‑year increase in OEM net sales in Q3 2025. Management noted that the partnership underscores growing acceptance of Dragonfly’s dry‑electrode technology, which eliminates toxic solvents, reduces carbon footprint, and is chemistry‑agnostic, giving the company a competitive edge in the marine sector.
Dragonfly’s Q3 2025 results highlighted a 710‑basis‑point expansion of gross margin to 29.7%, driven by higher‑margin OEM deals and favorable product mix. The company completed a $90 million public offering and secured a debt restructuring agreement, improving its balance sheet and providing flexibility to invest in high‑return verticals. CEO Dr. Denis Phares emphasized that the World Cat win is a milestone in the company’s marine OEM efforts, while Chief Commercial Officer Wade Seaburg highlighted the importance of World Cat’s continued trust as a signal of market confidence.
Management guided for Q4 2025 net sales of approximately $13.0 million, representing about 7% year‑over‑year growth, and an Adjusted EBITDA of roughly $(3.3) million. The guidance reflects seasonality and macroeconomic headwinds affecting DTC sales, but also signals confidence in the company’s long‑term OEM strategy. Investors reacted cautiously, citing concerns about ongoing profitability and the company’s guidance for continued Adjusted EBITDA losses, despite the positive OEM win.
The partnership positions Dragonfly ahead of competitors in the marine OEM market, where other players are still developing dry‑electrode solutions. By securing a flagship vessel contract, Dragonfly gains a foothold in a premium segment that can drive future revenue growth and reinforce its strategic pivot toward high‑margin, repeatable OEM relationships.
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