Orbital Corporation Limited (OEC) AI Stock Analysis

• Market Cap: $39.39M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): 57.4
• Beta (1Y): 1.32
• Revenue Growth: -34.48%
• EPS Growth: -26000.00%
• Country: AU
• Employees: 87
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): -0.03
• Shares Outstanding: 179,065,430
• 10 Day Avg. Volume: 1,276,280
• 30 Day Avg. Volume: 1,039,184
• PEG Ratio: <0.01
• Price to Book (P/B): 1.74
• Price to Sales (P/S): 1.81
• P/FCF Ratio: -2.62
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 8.33
• Enterprise Value/Ebitda: -2.83
• 1Y Price Target: $0.50
• Price Target Upside: 138.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: AU$0.50 ▲(138.10% Upside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues and negative profitability. While technical indicators show a bullish trend, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The absence of earnings call data and corporate events limits additional insights.

Orbital Corporation Limited Business Overview & Revenue Model

Company Description

Orbital Corporation Limited (OEC) is an Australian company specializing in the development and manufacturing of high-technology products for the aerospace and defense sectors. The company focuses on delivering advanced solutions in propulsion systems, satellite technology, and weapon systems, catering to both military and commercial applications. With a strong commitment to innovation and quality, OEC aims to enhance operational capabilities for its clients through its cutting-edge technologies.

How the Company Makes Money

Orbital Corporation Limited generates revenue primarily through the sale of its specialized aerospace and defense products and services. The company’s revenue model is built on several key streams, including contracts with government defense agencies, partnerships with private sector aerospace companies, and licensing agreements for its proprietary technologies. Additionally, OEC engages in research and development projects that are often funded through grants or partnerships, which further contribute to its income. Significant partnerships with industry leaders in defense and aerospace amplify its market reach and enhance its product offerings, driving sales and profitability.

Orbital Corporation Limited Financial Statement Overview

Summary

Orbital Corporation Limited is facing significant financial challenges, with declining revenues, negative profitability, and cash flow difficulties. Despite an improved debt-to-equity ratio, the company struggles with operational inefficiencies and cash flow management.

Income Statement

Orbital Corporation Limited has faced declining revenue and profitability over recent years. The company reported a negative revenue growth rate of -7.37% in the latest year, indicating a contraction in sales. Gross profit margin has decreased significantly from 55.27% in 2020 to 29.47% in 2025, reflecting challenges in maintaining cost efficiency. The net profit margin is negative, highlighting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.35, which is an improvement from previous years, suggesting better leverage management. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio stands at 49.17%, showing a reasonable level of equity financing relative to total assets.

Cash Flow

Orbital Corporation's cash flow situation is concerning, with negative operating and free cash flows. The free cash flow growth rate is positive at 166.49%, but this is due to a smaller negative base in the previous year. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is high at 2.11, suggesting cash flow issues relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.52M	8.23M	12.57M	16.78M	15.72M	31.20M
Gross Profit	2.05M	2.42M	-2.27M	7.98M	5.32M	14.82M
EBITDA	-6.04M	-2.62M	1.65M	1.56M	-5.13M	-7.67M
Net Income	-1.99M	-4.30M	67.00K	20.00K	-11.13M	-11.45M
Balance Sheet
Total Assets	17.42M	17.42M	22.23M	19.94M	22.61M	29.79M
Cash, Cash Equivalents and Short-Term Investments	1.54M	1.54M	5.53M	3.04M	2.95M	3.70M
Total Debt	2.98M	2.98M	6.07M	5.63M	9.25M	11.81M
Total Liabilities	8.85M	8.85M	11.40M	13.00M	20.41M	22.44M
Stockholders Equity	8.57M	8.57M	10.83M	6.94M	2.20M	7.34M
Cash Flow
Free Cash Flow	-2.93M	-5.67M	-1.19M	-3.78M	-4.60M	-2.42M
Operating Cash Flow	-2.80M	-2.69M	-34.00K	-3.49M	-4.09M	-1.69M
Investing Cash Flow	-2.51M	-2.51M	-790.00K	-372.00K	-2.20M	-2.12M
Financing Cash Flow	1.49M	1.49M	3.30M	3.89M	5.39M	-1.07M

Orbital Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:OEC, the sentiment is Neutral. The current price of 0.21 is below the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.24, and above the 200-day MA of 0.14, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:OEC.

Orbital Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEE	66 Neutral	AU$209.48M	64.64	5.66%	0.72%	-14.88%	-56.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SSH	57 Neutral	AU$14.27M	19.38	6.19%	―	-6.52%	-20.79%
EOS	55 Neutral	$1.20B	35.26	-28.75%	―	-72.88%	―
OEC	55 Neutral	$39.39M	57.41	-42.31%	―	-34.48%	-26000.00%
EMB	50 Neutral	AU$16.21M	17.52	4.57%	4.66%	-15.54%	-26.61%
AEI	45 Neutral	AU$13.56M	―	-203.38%	―	-0.52%	-38.84%

Orbital Corporation Limited Corporate Events

Orbital UAV Invests in New Engine Development Amid Cash Outflow

Orbital Corporation Limited reported a quarterly operating cash outflow of $0.5 million, with cash, trade receivables, and un-drawn loan facilities totaling $5.9 million as of June 30, 2025. The company invested $1.2 million in product development, focusing on a new larger capacity engine to meet the growing demand for higher UAV payloads, with prototype engines set to begin customer flight trials and evaluations in the second quarter of 2025/26.

Orbital Corporation Appoints New CEO to Drive UAV Market Expansion

Orbital Corporation Limited has appointed Mr. Stephen Pearce as the new Chief Executive Officer, marking a significant step in the company’s strategic transition from engine development to the commercial deployment of propulsion and flight management systems for tier 1 defense UAV customers. Mr. Pearce’s extensive experience in the defense sector and UAV market is expected to drive Orbital’s growth and strengthen its position in the highly competitive UAV defense industry, which is dominated by major global defense contractors. This appointment is part of a broader management strengthening initiative, as Orbital aims to enhance its manufacturing capabilities and capitalize on its proven technology, which has already achieved over one million operational flight hours.