Orbital posts $34m revenue in FY20

Defence contractor Orbital UAV says it has achieved strong revenue growth for the full financial year on the back of a recent engine supply agreement with Boeing.

Balcatta-based Orbital generated $33.8 million in revenue during FY20, representing a 121 per cent increase on the prior financial year, as well as being at the top end of the company’s guidance range.

Orbital’s net profit after tax was $1.7 million, down from $5.9 million in FY19.

The company said its revenue was underpinned by the long-term supply agreement it had signed with Boeing Company’s Washington-based subsidiary Initsu.

Orbital has been contracted to make five engine models to power Initsu’s entire unmanned aerial vehicle (UAV) fleet.

Two engine models are under continuous production, Orbital said, with the third of the five models scheduled for production next year.

Orbital said it had also signed a memorandum of understanding with Singapore’s largest defence company for the design and production of a multi-fuel UAV engine.

The company also signed a contract with US-based Northrop Grumman Corporation in March.

Orbital said its customer demand remained strong, with the current and projected business outlook unaffected by the COVID-19 pandemic.

Managing director Todd Alder said the company had made excellent progress on its FY20 objectives.

“Delivering revenue at the top end of guidance, in spite of the COVID-19 environment, is testament to the commitment of our people and our ability to effectively manage our global supply chain,” he said.

Orbital is targeting further revenue growth in FY21, with full-year revenue expected to be in the range of $40 million and $50 million.

The company said revenue growth would be underpinned by an expanded product range and increased customer demand.

Shares in Orbital closed up 11 per cent today to trade at $1.40.