New Engine Order For US Coast Guard Program
| Stock | Orbital Corporation Ltd (OEC.ASX) |
|---|---|
| Release Time | 7 May 2026, 10:30 a.m. |
| Price Sensitive | Yes |
Orbital Receives New Engine Order for US Coast Guard Program
- Orbital receives $600,000 purchase order for 5 engines and associated services
- Engines for long-endurance UAS with BVLOS clearance in US airspace
- Potential for large COCO UAS ISR services program with US Coast Guard
Orbital Corporation Limited (ASX: OEC) has received a Purchase Order from a US-based unmanned aircraft systems company, for five 150HFE heavy fuel engines, a FlexDT™ Diagnostic and ECU Management Tool, a Power Management System and Non-Recurring Engineering (NRE) services totalling USD $392,420 (approximately A$600,000). These engines are for a Group 3 long-endurance UAS that achieved a demonstrated 24-hour continuous flight in March 2025 and holds a commercially approved Beyond Visual Line of Sight (BVLOS) clearance in the US National Airspace System. The US Coast Guard has issued an RFI for a Contractor Owned Contractor Operated (COCO) UAS ISR Services program with both shore-based and ship-board persistent maritime Intelligence, Surveillance and Reconnaissance (ISR) services under a Basic Ordering Agreement (BOA) with a 5-year term plus a 5-year option. Orbital estimates that the program could require up to 80 UAS systems and represents one of the largest sustained COCO UAS ISR opportunities in the US Department of Homeland Security procurement portfolio. This purchase order is a strategic precursor to an Orbital Power by the Hour (PBH) revenue model, where total revenue per engine over the life of a service contract is based on operating flight hours, creating a substantially more valuable, recurring revenue stream for Orbital.
Orbital is unable to accurately quantify the future revenue stream arising from supply of Power by the Hour services under this UAS ISR Services Program at this time.
Should the US customer be successful in securing work under the BOA, Orbital anticipates the opportunity to transition from a hardware supply relationship to an ongoing PBH service contract covering engine maintenance, overhaul, performance support and replacement across the operational fleet by Q3 of FY2027.