Orbital expands global UAV engine footprint amid softer quarterly cash flows

Orbital Corporation Limited ( (AU:OEC) ) has provided an update.

Orbital Corporation’s March 2026 quarter saw continued deliveries across its engine programs for Tier 1 defence customers in the United States, South-East Asia and the broader Asia-Pacific region, while all four heavy-fuel engine models remained in production or production-ready for military and commercial use. Cash receipts fell to $1.6 million and operations recorded a modest net cash outflow, leaving a $2 million cash balance supplemented by an undrawn $2 million standby facility.

The company advanced multiple growth initiatives, including U.S. milestones such as a cumulative one million flight hours with the U.S. Navy, new upgrade orders for Textron Systems’ Aerosonde UAVs, and delivery of its first 350HFE ICE-electric hybrid system to a U.S. heavy-lift drone customer. It also expanded its international footprint with initial and follow-on engine orders in Singapore and India, a five-year distribution agreement in the UAE, and a hybrid propulsion order for Australian heavy-lift drones, underscoring its push into hybrid systems and broader defence tenders despite softer quarterly cash flows.

More about Orbital Corporation Limited

Orbital Corporation Limited designs and manufactures integrated heavy-fuel propulsion systems and flight-critical components for Group 2 and Group 3 tactical unmanned aerial vehicles. The company operates production facilities in Western Australia and provides in‑service support in the United States, serving defence and commercial customers across the U.S., Asia-Pacific, Middle East and Australian markets.

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Technical Sentiment Signal: Buy

Current Market Cap: A$35.81M

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