Orbital UAV Lands Skyfront Order, Boosts Cash Flow and Expands Engine Range

Strong Cash Flow and Financial Position

Orbital Corporation Ltd, a leader in integrated propulsion systems for unmanned aerial vehicles (UAVs), has reported a marked improvement in its financial health for the quarter ending 31 December 2025. The company recorded a positive cash inflow of $0.5 million from operations, a significant turnaround from the $1.1 million outflow in the previous corresponding period. With a closing cash balance of $3.5 million and an undrawn $2 million loan facility, Orbital is well-positioned to fund ongoing development and operational activities.

Expanding Product Range and Customer Base

During the quarter, Orbital secured a notable new customer, Skyfront Corporation, a US-based company specializing in heavy-lift UAV platforms. Skyfront’s initial order for Orbital’s new 350cc heavy fuel engine (HFE) marks a strategic expansion into the heavy-lift UAV segment. This engine will serve as an onboard electrical power generator, enabling extended mission endurance and high payload capacity through hybrid power solutions.

Orbital’s 350cc HFE responds to growing global demand for larger capacity engines driven by complex mission profiles and regulatory changes, particularly for Beyond Visual Line of Sight (BVLOS) commercial flights. The company has commenced manufacturing 10 units to support initial customer integration and evaluation.

Ongoing Sales and Development Progress

Sales activities continued robustly with the delivery of 150HFE engines to Defence Science Organisation (DSO) and the completion of an engineering development program for an upgraded 75cc engine supporting the Textron Aerosonde 4.7 UAV platform. Additionally, flight trials in India with the 150cc HFE engine on the Dynamatics Cheel UAV platform progressed, with further engine packages delivered and anticipated new orders in the next quarter.

Strategic Positioning in Military and Commercial UAV Markets

Orbital’s patented Flex DI technology continues to underpin its competitive advantage, offering superior heavy fuel performance and reliability with over 1.2 million in-field service hours. Historically focused on military customers, the company is now leveraging emerging commercial UAV applications, particularly mid-sized UAVs for infrastructure asset management, where they can replace helicopters efficiently.

With operations in Western Australia and Oregon, Orbital is strategically placed to service regions forecasted to experience significant UAV demand growth. The company anticipates receiving $0.8 million in R&D grants in the coming quarter, further supporting its innovation pipeline.