Orbital Corporation Limited (ASX:OEC): UAV Propulsion Platform Across Defence and Commercial Markets

Aditi Sarkar

23 September 2026 05:33 AM AEST

Orbital Corporation Limited (ASX:OEC): UAV Propulsion Platform Across Defence and Commercial Markets

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Highlights

Customer base expanded to 14 across international defence and commercial UAV markets.
New 350HFE propulsion system and Generation 2 Power Management System broadened product capability.
Business efficiency program reduced FTE headcount while targeting lower product costs.
FY26 included entry into commercial UAV markets with new customer programs.

Orbital Corporation Limited (ASX:OEC) designs and manufactures integrated propulsion systems and flight-critical components for tactical unmanned aerial vehicles (UAVs). The company develops heavy-fuel engine technology for defence and commercial applications, supported by operations in Australia and the United States. During FY26, Orbital focused on expanding its customer base, broadening its propulsion portfolio and positioning its technology platform across evolving UAV markets.

FY26 Strategy Focuses on Customer Expansion and Product Development

Orbital reported FY26 as a year of strategic change, with the company expanding its customer and product base while adjusting its operating structure to support future growth.

During the year, Orbital expanded its customer base to 14 across key international markets and entered the commercial UAV sector through Commercial Off-The-Shelf (COTS) propulsion systems.

The company expanded its product portfolio through the introduction of the 350HFE propulsion system and Generation 2 Power Management System. Orbital also continued development of an ICE-Electric hybrid propulsion solution designed to extend operating range and endurance for battery-powered UAV platforms.

A dedicated Business Development function was established across the United States and Europe to increase engagement with defence and commercial UAV manufacturers.

Orbital also implemented a business efficiency and cost reduction program, reducing FTE headcount from 54 to 42 while progressing engineering, Supply chain and Manufacturing optimisation initiatives.

Global UAV Programs Support Broader Market Opportunities

Orbital continued progressing customer programs across international markets during FY26.

The company completed delivery of an initial production order of 56 propulsion systems for the DSO National Laboratories 150HFE program. In the United States, Orbital completed a power upgrade program for the Textron Systems Aerosonde® 4.7 UAV platform, with orders for 32 upgrade packages received for delivery during FY2027.

In India, Orbital finalised development of a 150HFE engine package for the Dynamatic Cheel® UAV platform. The company also secured orders for its 50HFE propulsion system from a new Middle East customer.

Orbital entered the commercial UAV market by delivering 150HFE and 350HFE systems to its first commercial customers. The company continues targeting opportunities across defence, commercial BVLOS and Attritable UAV segments.

The company stated that future production opportunities depend on converting customer development programs into longer-term contracts following integration, testing and qualification processes.

Financial Position and FY27 Priorities

For FY26, Orbital reported Revenue from continuing operations of $6.2 million compared with $8.2 million in FY25. Other income was $3.3 million compared with $4.5 million, while net loss after tax was $4.8 million compared with a $4.3 million loss in FY25.

At 30 June 2026, Orbital reported cash and receivables of $2.5 million and net Assets of $6.8 million. The company received $4.1 million under the Australian Research and Development Tax Incentive program and completed a $3.0 million Equity Placement during the year.

Orbital enters FY27 focused on converting its expanded international customer base and development pipeline into production orders and longer-term revenue streams.

The company plans to continue advancing the 350HFE, Generation 2 Power Management System and hybrid propulsion technologies while developing lower-cost propulsion solutions for emerging UAV markets.

Orbital also entered an additional unsecured Working Capital Loan Facility of $1.5 million after year end to support ongoing product development activities.

Key Insights

Orbital Corporation is expanding its UAV propulsion technology platform through new products, international customer programs and commercial market entry. FY26 focused on customer diversification, operational efficiency and development of propulsion systems for evolving defence and commercial applications.

FAQs

Q:What does Orbital Corporation do?

A:Orbital designs and manufactures integrated propulsion systems and flight-critical components for UAVs.

Q:What are Orbital’s key propulsion products?

A:Key products include the 150HFE, 350HFE propulsion system and Generation 2 Power Management System.

Q:What markets does Orbital operate in?

A:Orbital serves defence and commercial UAV markets across regions including the United States, India, Europe, the Middle East and Australia.

Q:What was Orbital’s FY26 revenue?

A:Orbital reported revenue from continuing operations of $6.2 million for FY26.

Q:What are Orbital’s FY27 priorities?

A:The company is focused on converting customer programs into production opportunities and advancing its UAV technology portfolio.

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