Orbital Corporation Limited (OEC) AI Stock Analysis

• Market Cap: AU$25.96M
• Dividend Yield: N/A
• Average Volume (3M): 153.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: -34.48%
• EPS Growth: -26000.00%
• Country: AU
• Employees: 87
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.03
• Shares Outstanding: 179,065,430
• 10 Day Avg. Volume: 122,132
• 30 Day Avg. Volume: 153,436
• 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 Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Neutral
• Price Target: AU$0.16 ▼(-7.65% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are poor with a negative P/E ratio. These factors collectively contribute to a low stock score.

Positive Factors

Improved Leverage Management

Improved leverage management indicates better financial discipline, potentially reducing financial risk and enhancing long-term stability.

Strategic Partnerships

Strategic partnerships can drive sales and profitability, providing a competitive edge and supporting long-term growth in the aerospace and defense sectors.

Free Cash Flow Growth

Positive free cash flow growth, despite being from a smaller base, indicates potential for improved cash generation, aiding future investments and debt reduction.

Negative Factors

Declining Revenue

Declining revenue signals shrinking market presence or demand, which can hinder long-term growth and competitiveness in the industry.

Negative Profitability

Decreasing profit margins reflect cost inefficiencies and pricing pressures, impacting the company's ability to sustain profitability over time.

Cash Flow Challenges

Negative cash flows indicate liquidity issues, potentially limiting the company's capacity to invest in growth opportunities and meet financial obligations.

Orbital Corporation Limited Business Overview & Revenue Model

Company Description

Orbital Corporation Limited (OEC) is an Australian company specializing in the development and manufacturing of high-technology products for the aerospace and defense sectors. The company focuses on delivering advanced solutions in propulsion systems, satellite technology, and weapon systems, catering to both military and commercial applications. With a strong commitment to innovation and quality, OEC aims to enhance operational capabilities for its clients through its cutting-edge technologies.

How the Company Makes Money

Orbital Corporation Limited generates revenue primarily through the sale of its specialized aerospace and defense products and services. The company’s revenue model is built on several key streams, including contracts with government defense agencies, partnerships with private sector aerospace companies, and licensing agreements for its proprietary technologies. Additionally, OEC engages in research and development projects that are often funded through grants or partnerships, which further contribute to its income. Significant partnerships with industry leaders in defense and aerospace amplify its market reach and enhance its product offerings, driving sales and profitability.

Orbital Corporation Limited Financial Statement Overview

Summary

Orbital Corporation Limited is facing significant financial challenges, with declining revenues, negative profitability, and cash flow difficulties. The debt-to-equity ratio has improved, but operational inefficiencies and cash flow management remain problematic.

Income Statement

Orbital Corporation Limited has faced declining revenue and profitability over recent years. The company reported a negative revenue growth rate of -7.37% in the latest year, indicating a contraction in sales. Gross profit margin has decreased significantly from 55.27% in 2020 to 29.47% in 2025, reflecting challenges in maintaining cost efficiency. The net profit margin is negative, highlighting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.35, which is an improvement from previous years, suggesting better leverage management. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio stands at 49.17%, showing a reasonable level of equity financing relative to total assets.

Cash Flow

Orbital Corporation's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is positive at 166.49%, but this is due to a smaller negative base in the previous year. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is high at 2.11, suggesting cash flow issues relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.52M	8.23M	12.57M	16.78M	15.72M	31.20M
Gross Profit	2.05M	2.42M	-2.27M	7.98M	5.32M	14.82M
EBITDA	-6.04M	-2.62M	1.65M	1.56M	-5.13M	-7.67M
Net Income	-1.99M	-4.30M	67.00K	20.00K	-11.13M	-11.45M
Balance Sheet
Total Assets	17.42M	17.42M	22.23M	19.94M	22.61M	29.79M
Cash, Cash Equivalents and Short-Term Investments	1.54M	1.54M	5.53M	3.04M	2.95M	3.70M
Total Debt	2.98M	2.98M	6.07M	6.06M	9.25M	11.81M
Total Liabilities	8.85M	8.85M	11.40M	13.00M	20.41M	22.44M
Stockholders Equity	8.57M	8.57M	10.83M	6.94M	2.20M	7.34M
Cash Flow
Free Cash Flow	-2.93M	-5.67M	-1.19M	-3.78M	-4.60M	-2.42M
Operating Cash Flow	-2.80M	-2.69M	-34.00K	-3.49M	-4.09M	-1.69M
Investing Cash Flow	-2.51M	-2.51M	-790.00K	-372.00K	-2.20M	-2.12M
Financing Cash Flow	1.49M	1.49M	3.30M	3.89M	5.39M	-1.07M

Orbital Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEC, the sentiment is Negative. The current price of 0.17 is above the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.18, and above the 200-day MA of 0.15, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 41.83 is Neutral, neither overbought nor oversold. The STOCH value of 46.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:OEC.

Orbital Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$19.07M	21.88	6.19%	―	-6.52%	-20.79%
VEE	57 Neutral	AU$119.60M	36.71	5.66%	1.28%	-14.88%	-56.89%
EOS	54 Neutral	AU$1.45B	41.28	-28.75%	―	-72.88%	―
EMB	50 Neutral	AU$17.48M	18.89	4.57%	4.32%	-15.54%	-26.61%
AEI	41 Neutral	AU$13.07M	-3.15	―	―	-0.52%	-38.84%
OEC	40 Neutral	AU$25.96M	-5.60	-42.31%	―	-34.48%	-26000.00%

Orbital Corporation Limited Corporate Events

Orbital UAV’s 2025 AGM Resolutions Passed Successfully

Orbital Corporation Limited announced that all resolutions presented at its 2025 Annual General Meeting were successfully passed. This outcome reflects strong shareholder support and may positively impact the company’s strategic initiatives and operational plans, reinforcing its position in the UAV industry.

Orbital Corporation Ltd Holds 2025 AGM to Discuss Future Strategies

Orbital Corporation Ltd, known for its UAV propulsion systems, is holding its 2025 Annual General Meeting today, where CEO Stephen Pearce will present to shareholders. This meeting is a significant event for the company as it provides insights into its future strategies and operations, potentially impacting its market positioning and stakeholder interests.

Orbital UAV and Carbonix Forge Partnership to Enhance UAV Capabilities

Orbital UAV and Carbonix have signed a Memorandum of Understanding (MOU) to integrate Orbital’s heavy fuel engine into Carbonix’s Ottano UAV platform. This collaboration aims to enhance the performance, reliability, and endurance of the Ottano platform for long-range and Beyond Visual Line of Sight operations, reinforcing both companies’ commitment to advancing Australian sovereign capability in aerospace and defense manufacturing.

Orbital UAV Achieves Milestone with New Engine Development Amid Positive Quarterly Results

Orbital Corporation Ltd reported a positive quarterly cash flow with receipts from customers reaching $4.2 million and net cash generated from operations at $0.7 million. The company completed a capital raising of $3.0 million and has a closing cash balance of $3.7 million. A significant milestone was achieved with the development of a new 350cc heavy fuel engine, designed to meet the rising demand for larger capacity engines due to increased payload requirements and regulatory changes. Orbital UAV plans to manufacture 10 engines next quarter to meet initial customer demand. The company is strategically positioned with a range of heavy fuel engines to support UAV payloads up to 250kg, and it remains involved in the U.S. Army’s UAV fleet modernization efforts.

Orbital Corporation Announces 2025 AGM with Focus on Sustainability

Orbital Corporation Limited has announced its 2025 Annual General Meeting, scheduled for November 20, 2025, at Stirling Leisure Centre in Mirrabooka, WA. The company is encouraging shareholders to utilize electronic communications to reduce environmental impact and improve efficiency, with options to submit proxy forms and questions in advance. This move reflects Orbital’s commitment to sustainability and streamlined operations, potentially enhancing shareholder engagement and operational transparency.