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Orbital Corporation Limited (AU:OEC)
:OEC
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Orbital Corporation Limited (OEC) AI Stock Analysis

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AU:OEC

Orbital Corporation Limited

(OTC:OEC)

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Underperform 38 (OpenAI - 4o)
Rating:38Underperform
Price Target:
AU$0.00
▼(-100.00% Downside)
Orbital Corporation Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and profitability, and cash flow issues. Technical analysis also indicates bearish trends. The negative P/E ratio further highlights the company's financial struggles.

Orbital Corporation Limited (OEC) vs. iShares MSCI Australia ETF (EWA)

Orbital Corporation Limited Business Overview & Revenue Model

Company DescriptionOrbital 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 MoneyOrbital 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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue6.52M8.23M12.57M16.78M15.72M31.20M
Gross Profit2.05M2.42M-2.27M7.98M5.32M14.82M
EBITDA-6.04M-2.62M1.65M1.56M-5.13M-7.67M
Net Income-1.99M-4.30M67.00K20.00K-11.13M-11.45M
Balance Sheet
Total Assets17.42M17.42M22.23M19.94M22.61M29.79M
Cash, Cash Equivalents and Short-Term Investments1.54M1.54M5.53M3.04M2.95M3.70M
Total Debt2.98M2.98M6.07M5.63M9.25M11.81M
Total Liabilities8.85M8.85M11.40M13.00M20.41M22.44M
Stockholders Equity8.57M8.57M10.83M6.94M2.20M7.34M
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 Flow1.49M1.49M3.30M3.89M5.39M-1.07M

Orbital Corporation Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.20
Price Trends
50DMA
0.22
Negative
100DMA
0.20
Negative
200DMA
0.15
Positive
Market Momentum
MACD
-0.01
Positive
RSI
38.04
Neutral
STOCH
36.19
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 0.2 is above the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 36.19 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
57
Neutral
AU$15.19M20.636.19%-6.52%-20.79%
54
Neutral
AU$976.34M28.73-28.75%-72.88%
54
Neutral
AU$195.61M60.365.66%0.81%-14.88%-56.89%
50
Neutral
AU$16.62M17.964.57%4.55%-15.54%-26.61%
49
Neutral
AU$14.30M-3.45-0.52%-38.84%
38
Underperform
AU$32.23M-42.31%-34.48%-26000.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:OEC
Orbital Corporation Limited
0.18
0.09
102.25%
AU:EOS
Electro Optic Systems Holdings Limited
5.06
3.78
296.86%
AU:EMB
Embelton Limited
7.70
-0.38
-4.68%
AU:SSH
SSH Group Ltd.
0.17
0.08
87.50%
AU:AEI
Aeris Environmental Ltd
0.05
-0.04
-40.00%
AU:VEE
Veem Ltd
1.24
-0.25
-17.11%

Orbital Corporation Limited Corporate Events

Orbital Corporation Announces 2025 AGM with Focus on Sustainability
Oct 16, 2025

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.

The most recent analyst rating on (AU:OEC) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Orbital Corporation Limited stock, see the AU:OEC Stock Forecast page.

Orbital Corporation Issues 3 Million Unquoted Securities
Aug 29, 2025

Orbital Corporation Limited has announced the issuance of 3,000,000 unquoted securities in the form of Lead Manager Options, as part of a transaction previously announced to the market. This move, detailed in their latest Appendix 3G notification, reflects the company’s ongoing financial strategies and could potentially impact its market positioning by enhancing its capital structure.

Orbital Corporation Completes $3 Million Share Placement
Aug 29, 2025

Orbital Corporation Limited has successfully completed a share placement, issuing 14,285,714 fully paid ordinary shares at $0.21 each to sophisticated investors, raising $3 million. This strategic move, executed under the company’s existing placement capacity, strengthens Orbital’s financial position and supports its operations in the UAV market, potentially enhancing its industry standing and stakeholder value.

Orbital Corporation Limited Announces Quotation of New Securities
Aug 29, 2025

Orbital Corporation Limited has announced the quotation of 14,285,714 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of August 28, 2025. This move is part of previously announced transactions and is expected to enhance the company’s financial flexibility and market presence, potentially impacting its operations and stakeholder interests positively.

Orbital Corporation Limited Releases 2025 Corporate Governance Statement
Aug 29, 2025

Orbital Corporation Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms that the company has adhered to the ASX Corporate Governance Council’s principles and recommendations throughout the reporting period, ensuring transparency and accountability in its operations. This adherence is expected to bolster stakeholder confidence and enhance the company’s reputation in the market.

Orbital Corporation Reports Significant Financial Decline for FY2025
Aug 29, 2025

Orbital Corporation Limited reported a significant decline in its financial performance for the year ended 30 June 2025, with revenue from continuing operations down by 34% to A$8,359,000 and a substantial increase in loss for the year, which reached A$4,297,000. The company has decided not to propose any dividends for the year. The results highlight challenges in the company’s operations and market positioning, potentially impacting stakeholders and necessitating strategic adjustments.

Orbital Corporation Announces Proposed Issue of Securities
Aug 21, 2025

Orbital Corporation Limited has announced a proposed issue of securities, specifically 3,000,000 advisor options, with the issue date set for August 28, 2025. This move is part of the company’s strategic financial initiatives, potentially impacting its market positioning by providing additional capital for growth and development, thereby influencing stakeholders’ interests and the company’s operational capabilities.

Orbital Corporation Poised for Growth in Evolving UAV Market
Aug 21, 2025

Orbital Corporation Limited is positioned to capitalize on the evolving global UAV market, which is seeing increased payload demands and a shift towards higher-powered propulsion systems. The company is poised to benefit from regulatory changes and the US Army’s interest in increasing the use of uncrewed aircraft. This strategic positioning could enhance Orbital’s market presence and offer significant opportunities for growth in the UAV sector.

Orbital Corporation Announces Proposed Securities Issue
Aug 21, 2025

Orbital Corporation Limited has announced a proposed issue of 14,285,714 ordinary fully paid securities, with a proposed issue date of August 28, 2025. This move is part of a placement or other type of issue, and the company has applied for the quotation of these securities on the Australian Securities Exchange (ASX). The announcement indicates a strategic effort by Orbital Corporation to potentially raise capital or expand its shareholder base, which could impact its market positioning and stakeholder interests.

Orbital UAV Secures A$3 Million to Boost Growth Amid U.S. Drone Policy Opportunities
Aug 21, 2025

Orbital UAV has announced a capital raising of A$3.0 million through the issuance of approximately 14.2 million new shares, aimed at funding business development and upgrading manufacturing and testing capabilities. This strategic move is intended to capitalize on the U.S. Drone Dominance Policy, which presents significant growth opportunities in both military and commercial UAV markets. The funds will support the company’s expansion efforts, including a focus on the U.S. and Asia Pacific regions, and enhance its ability to meet the growing demand for UAV propulsion systems. The company aims to increase shareholder value through these investments and a disciplined approach to market opportunities.

Orbital Corporation Initiates Trading Halt for Capital Raising Announcement
Aug 19, 2025

Orbital Corporation Limited has requested a trading halt on its securities pending the announcement of a capital raising initiative. This move indicates a strategic financial maneuver aimed at strengthening the company’s capital structure, potentially impacting its market positioning and stakeholder interests. The trading halt is expected to be lifted by the commencement of normal trading on August 21, 2025, following the release of the announcement.

Orbital UAV Expands Product Portfolio and Market Reach Amid Rising Global Demand
Aug 15, 2025

Orbital UAV is expanding its product portfolio and market reach, developing a new 350cc engine and a Power Management Unit to enhance its offerings for Tier 2 military and Tier 1 commercial customers. The company is targeting growth through its Partnership Program, Mission-Ready Engines, and In-Service Support Expansion, aligning with global trends in UAV demand driven by increased payload requirements and regulatory changes. Despite some procurement process pauses in the US, Orbital is well-positioned to capitalize on upcoming defense spending and platform development opportunities.

Orbital Corporation Addresses ASX Query on Share Price Surge
Aug 13, 2025

Orbital Corporation Limited has responded to a query from the ASX regarding a significant increase in its share price. The company stated that it is unaware of any undisclosed information that could explain the recent trading activity and confirmed compliance with ASX Listing Rules. This response suggests stability in the company’s operations and adherence to regulatory requirements, which may reassure stakeholders amidst the unusual market activity.

Orbital Corporation Addresses ASX Query Amid Leadership Changes
Aug 8, 2025

Orbital Corporation Limited has responded to a query from the ASX regarding recent trading activity in its shares, stating it is unaware of any undisclosed information that could explain the trading fluctuations. The company highlighted recent leadership changes, including the appointment of Stephen Pearce as CEO to lead its transition to a fully integrated UAV propulsion systems manufacturer, and the hiring of Steve Osborne as Head of Business Development for the US and Europe, to strengthen its market position in the global defense aerospace sector.

Orbital UAV Invests in New Engine Development Amid Cash Outflow
Jul 30, 2025

Orbital Corporation Limited reported a quarterly operating cash outflow of $0.5 million, with cash, trade receivables, and un-drawn loan facilities totaling $5.9 million as of June 30, 2025. The company invested $1.2 million in product development, focusing on a new larger capacity engine to meet the growing demand for higher UAV payloads, with prototype engines set to begin customer flight trials and evaluations in the second quarter of 2025/26.

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.Date of analysis: Oct 25, 2025