- Orbital UAV signs engine development and supply agreement with Lycoming Engines, an unincorporated operating division of Avco Corporation, a subsidiary of Textron Inc., to supply engines to Textron Systems Corporation, a world leader in unmanned aerial vehicles (‘UAVs’) for aerospace and defence customers.
- Major expansion of Orbital UAV’s business relationships and future revenue opportunities.
- New collaboration commences with a 12-month engine development and vehicle integration program and, based on success, transitions to the supply of engines for up to 10 years.
PERTH, AUSTRALIA: Orbital Corporation Ltd (‘Orbital UAV’) is pleased to announce it has signed a new engine development and supply agreement with Textron subsidiary, Lycoming Engines.
The new agreement includes a 12-month engine development program, which will enable the integration of an Orbital UAV-designed core engine, including proprietary fuel and engine control systems, into Textron Systems’ Aerosonde program. Textron subsidiary Textron Systems is a world leader in unmanned aircraft systems and one of the largest suppliers of tactical UAVs to the U.S. armed forces.
Upon satisfactory completion of the engine development program, the Agreement transitions to an engine supply contract. The supply agreement includes the provision of engines, spare parts and support services and will run for a minimum of five years. Lycoming then has the discretion to call for five additional oneyear extensions to complete the full 10-year term.
Delivery of production engines under the agreement will be no earlier than quarter four of Financial Year ending 30 June 2022. Consequently, Orbital UAV’s revenue guidance for the current financial year (12 months to 30 June 2021) remains unchanged at A$30 million to A$40 million. The potential impact of the agreement on future revenues will not be certain until the completion of the engine development program and the scheduling of any committed engine deliveries under the engine supply contract.
“We are delighted to announce this major new collaboration with Lycoming and to be working with Textron Systems on a joint development program,” said Todd Alder, CEO and Managing Director of Orbital UAV. “This relationship further enhances our status within the global UAV defence industry and provides the opportunity to increase our market share and deliver on our strategic growth objectives” said Mr. Alder.
“Orbital UAV’s heavy fuel technology and design expertise coupled with Lycoming Engines’ World Class reputation further supports Textron Systems’ industry-leading UAV mission readiness rates and reputation for reliability and durability,” said Mr. Prender.