Orbital Corporation Limited (AU:OEC)
ASX:OEC
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Orbital Corporation Limited
(Sydney:OEC)
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Rating:49Neutral
Price Target:
AU$0.22
▲(28.82% Upside)
Action:ReiteratedDate:04/22/26
The score is held back primarily by weak financial performance—declining revenue, deteriorating margins, and negative operating/free cash flow—despite moderate leverage. Technicals are a clear positive with price trading above key moving averages and positive MACD, but valuation remains constrained by losses (negative P/E) and no stated dividend yield.
Positive Factors
Improving leverage
A lower, improved debt-to-equity ratio (0.35) materially strengthens financial flexibility over months. It reduces refinancing and solvency risk, enabling the company to fund R&D, pursue contracts or bridge cash deficits without immediately diluting shareholders or overleveraging.
Negative Factors
Declining revenue
Sustained top-line contraction (-7.37%) weakens scale economics and undermines the business model. Over 2-6 months declining sales will pressure operating leverage, reduce resources for product development and customer retention, and make profitability recovery harder without structural revenue fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving leverage
A lower, improved debt-to-equity ratio (0.35) materially strengthens financial flexibility over months. It reduces refinancing and solvency risk, enabling the company to fund R&D, pursue contracts or bridge cash deficits without immediately diluting shareholders or overleveraging.
Read all positive factors
Orbital Corporation Limited (OEC) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$34.92M
Dividend YieldN/A
Average Volume (3M)157.18K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-5.85%
EPS Growth-777.78%
CountryAU
Employees87
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding179,065,430
10 Day Avg. Volume168,534
30 Day Avg. Volume157,176
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)1.74
Price to Sales (P/S)1.81
P/FCF Ratio-2.62
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Orbital Corporation Limited Business Overview & Revenue Model
Company Description
Orbital Corporation Limited provides integrated propulsion systems and flight critical components for tactical uncrewed aerial vehicles in Australia and the United States. It also provides modular propulsion solution, design and development, machi...
How the Company Makes Money
null...
Orbital Corporation Limited Financial Statement Overview
Summary
Income Statement
35
Negative
Balance Sheet
40
Negative
Cash Flow
30
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.57M | 8.23M | 12.57M | 16.78M | 15.72M | 31.20M |
| Gross Profit | -1.78M | 2.42M | -2.27M | 7.98M | 5.32M | 14.82M |
| EBITDA | -5.07M | -2.62M | 1.65M | 1.56M | -5.13M | -7.67M |
| Net Income | -3.80M | -4.30M | 67.00K | 20.00K | -11.13M | -11.45M |
Balance Sheet | ||||||
| Total Assets | 16.99M | 17.42M | 22.23M | 19.94M | 22.61M | 29.79M |
| Cash, Cash Equivalents and Short-Term Investments | 3.98M | 1.54M | 5.53M | 3.04M | 2.95M | 3.70M |
| Total Debt | 4.13M | 2.98M | 6.07M | 6.06M | 9.25M | 11.81M |
| Total Liabilities | 7.14M | 8.85M | 11.40M | 13.00M | 20.41M | 22.44M |
| Stockholders Equity | 9.85M | 8.57M | 10.83M | 6.94M | 2.20M | 7.34M |
Cash Flow | ||||||
| Free Cash Flow | -21.50K | -5.67M | -1.19M | -3.78M | -4.60M | -2.42M |
| Operating Cash Flow | 112.00K | -2.69M | -34.00K | -3.49M | -4.09M | -1.69M |
| Investing Cash Flow | -1.50M | -2.51M | -790.00K | -372.00K | -2.20M | -2.12M |
| Financing Cash Flow | 2.22M | 1.49M | 3.30M | 3.89M | 5.39M | -1.07M |
Orbital Corporation Limited Technical Analysis
Positive
0.17
Price Trends
0.13
Positive
0.14
Positive
0.17
Positive
Market Momentum
0.01
Negative
59.07
Neutral
74.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEC, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.13, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 74.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:OEC.
Orbital Corporation Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | AU$508.93M | 7.39 | 22.89% | 2.51% | 1.87% | -23.48% | |
65 Neutral | AU$1.89B | 23.05 | 7.21% | ― | 33.61% | 209.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | AU$1.98B | 92.35 | 7.19% | ― | -27.25% | ― | |
49 Neutral | AU$34.92M | -4.07 | -41.28% | ― | -5.85% | -777.78% | |
45 Neutral | AU$232.59M | -2.98 | -70.19% | ― | -1.81% | 8.33% | |
44 Neutral | AU$87.63M | -1.55 | -50.97% | ― | -36.31% | -245.99% |
* Industrials Sector Average
AU:OEC
Orbital Corporation Limited
0.18
0.09
96.63%
AU:ASB
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4.29
-0.85
-16.54%
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685.43%
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24.10%
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AU:MCE
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90.24%
Orbital Corporation Limited Corporate Events
Orbital expands global UAV engine footprint amid softer quarterly cash flows
Apr 29, 2026
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 rema...
Orbital UAV Wins New Indian Engine Order and Expands Global Drone Footprint
Apr 14, 2026
Orbital UAV has secured a new order from India’s Dynamatic Technologies for its 350HFE propulsion system to power the Super Cheel UAV, expanding an existing partnership that already covers the 150HFE engine for the Cheel tactical drone. The ...
Orbital UAV Wins US$1.1m UAE Engine Order and Seals Long-Term Propulsion Partnership
Apr 7, 2026
Orbital UAV has secured an initial US$1.1 million order from a new sovereign government customer in the United Arab Emirates for its 50HFE propulsion systems and proprietary power management systems, marking the company’s first sales foothol...
Orbital UAV expands global defence drone footprint with new engine, diagnostics order and NATO-aligned MoU
Mar 23, 2026
Orbital UAV has announced a trio of moves that deepen its role in the global unmanned systems market, spanning heavy-lift logistics drones and tactical military platforms. The company continues to pursue a strategy of pairing engine supply with di...
Orbital posts deeper half-year loss despite modest revenue growth
Feb 26, 2026
Orbital Corporation Limited reported half-year revenue from continuing operations of A$4.89 million for the period ended 31 December 2025, a modest 2% increase on the prior corresponding period. However, the company swung to a net loss after tax o...
Orbital UAV Wins Initial Engine Upgrade Deal for Textron Military Drone Fleet
Feb 23, 2026
Orbital UAV has secured an initial order worth about A$475,000 from Textron Systems to supply 25 power upgrade kits for the Textron Aerosonde 4.7 unmanned aerial vehicles currently deployed with the U.S. military. The kits, based on Orbital’...
Orbital UAV Improves Cash Position and Ramps Up Production of New 350cc UAV Engine
Jan 29, 2026
Orbital UAV reported a materially improved cash performance for the quarter to 31 December 2025, with operating cash inflow of $0.5 million and a modest net cash outflow of $0.2 million, ending the period with $3.5 million in cash, an undrawn $2 m...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.