• Continued delivery across active production programs
• Ongoing product development to adapt to changing regulatory environment
• Securing new customers across defence and commercial sectors

Orbital Corporation Limited (ASX: OEC) presents its quarterly activities report for the period ended 31 March 2026. Orbital designs and manufactures integrated heavy-fuel propulsion systems (IPS) and flight-critical components for Group 2 and Group 3 tactical unmanned aerial vehicles (UAVs). Key highlights for the quarter include continued delivery across the Company's active production programs, ongoing product development activity to adapt to the changing regulatory environment, active engagement across the Company's new business pipeline, and the securing of new customers across multiple regions in both the defence and commercial sectors. The Company's four propulsion system models - the 50cc, 75cc, 150cc and 350cc heavy-fuel engines (HFE) - are all in production or production-ready status in both military and commercial (COTS) configurations. The Company continues to invest in the development of next-generation propulsion products, including ICE-Electric Hybrid Propulsion System, Generation 2 Power Management System (PMS), and a 500cc HFE Engine. Orbital now has 12 active customers, 11 products, and sells into 5 geographic regions, reflecting the Company's significant commercial development since 2021. The Company has also implemented a business efficiency and cost reduction plan, which reduced FTE headcount and reduced product costs through engineering and supply chain optimisation.

The Company has an order book for 27 propulsion systems for delivery in early FY27 with a further 18 propulsion systems currently scheduled for production in the next 4 months. The Company's new business opportunity pipeline currently stands at A$43 million (excluding US military programs and Power by the Hour opportunities).

The key business focus for FY26 has been the continued development of the Company's 350HFE system, Generation 2 Power Management System (PMS) and the new ICE-Electric Hybrid propulsion system. The Company has also extended its product range to include cost-competitive Commercial off-the-shelf engine variants to address rapidly evolving opportunities in the commercial sector.