OEC Price sensitive 7 Apr 2026, 10:33 AM

Trading Update

Orbital Corporation Ltd

Orbital UAV Secures UAE Strategic Propulsion Partnership and Engine Order

Key points

  • Secured initial order from new customer in UAE for 50HFE propulsion systems
  • Entered into Long-Term Distribution Agreement to become UAV propulsion partner in UAE
  • Order valued at USD 1.1 million, with engines to be delivered by August 2026

Full summary

Orbital Corporation Ltd (Orbital UAV) has secured an initial order from a new customer in the United Arab Emirates (UAE) for the supply of the company's 50HFE propulsion systems. The order, valued at USD 1.1 million, marks Orbital UAV's entry into the Middle East market, consistent with the company's continued expansion across key international markets. The engines are for a military application and are expected to be delivered by August 2026. In addition to the initial engine order, Orbital UAV has entered into a Long-Term Distribution Agreement (LTA) under which the customer will become a UAV propulsion partner for the company in the UAE, with the potential to include additional models across Orbital UAV's full product range, including the 75HFE, 150HFE and 350HFE propulsion systems. The LTA is consistent with the company's strategy of building long-term partnership programs through initial supply, followed by expanded engine sales and an ongoing in-service support revenue stream. Orbital UAV has previously sold more than 1,000 of the 50HFE engines to Boeing Insitu, and the engine has a strong operating history with an estimated 250,000 hours of mission flight time.

Outlook

The company is seeing renewed interest in the smaller engines within its product range, and the new partnership in the UAE is expected to provide opportunities for expanded engine sales and an ongoing in-service support revenue stream.

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