Orbital UAV commences engine shipments for the Australian Army

Orbital UAV commences engine shipments for the Australian Army

Orbital UAV ships engines to Insitu Pacific to support Australian Army Tactical UAS program.

PERTH, AUSTRALIA: Orbital Corporation Ltd (‘Orbital UAV’, ‘the Company’) has commenced the delivery of engine builds to Insitu Pacific Pty Ltd (‘Insitu Pacific’) – the team responsible for supplying the Australian Army with its next generation of tactical uncrewed aerial system (UAS).

LAND 129 Phase 3

Insitu Pacific, a wholly owned subsidiary of The Boeing Company, was confirmed by the Australian Government as the preferred supplier to the LAND 129 Phase 3 program in March 2022. The contract includes delivery and initial support of the Integrator UAS as well as associated Ground Systems and Prime Systems Integrator services.

As Insitu Pacific’s primary engine supplier, Orbital UAV’s industry leading propulsion manufacturing
capability was an integral part of the successful bid.

“We are incredibly proud to support Insitu Pacific in the delivery of the Integrator UAS to the Australian
Army,” said Todd Alder, CEO and Managing Director of Orbital UAV. “We have been working closely
with the Insitu Pacific team over recent months to ensure the on-time delivery of their propulsion system requirements to support delivery of the Integrator to Army through 2023 and 2024. First engine shipments are a significant milestone in this program of work and our broader relationship with Insitu
Pacific,” he said.

A partnership to deliver sovereign capability

The Integrator is a proven, expeditionary UAS in service globally that delivers enduring multi-domain effects to enable a 24/7 intelligence, surveillance and reconnaissance (‘ISR’) capability.

“Our suppliers bring home-grown, Australian innovation and ingenuity to the program,” said Andrew
Duggan Managing Director of Insitu Pacific. “The delivery of the Integrator system to the Australian Army
will be underpinned by our shared commitment to further develop sovereign capability and supports the
growth of businesses directly on our team, as well as their respective ecosystems of Australian suppliers.”

Members of the Queensland-based Insitu Pacific team recently toured Orbital UAV’s Western Australia development and manufacturing facilities to see the Integrator engine production line in operation and explore the long-term maintenance, repair and overhaul (‘MRO’) requirements associated with the
LAND 129 Phase 3 program.

“Sustainment programs represent a critical component of all defence contracts and the delivery of the country’s long-term sovereign capability objectives,” said Mr Alder. “We look forward to implementing a
comprehensive MRO agreement that will appropriately support Insitu Pacific and fully address the needs
of the end user.”

“After the initial delivery of Integrator, our effective through-life support to Army will include working with our strong, established supplier base such as Orbital to continue to deliver capability and content locally to meet Army’s requirements,” said Mr Duggan.

Orbital UAV Growth Strategy

Orbital UAV is a world leader in the design and manufacture of integrated engine systems for military drones. The Company has a unique product offering that is targeting a $3 billion annual global tactical
UAV defence market.

The relationship with Insitu Pacific, a wholly owned subsidiary of The Boeing Company, and the delivery
of engines to the Australian Government as part of LAND 129 Phase 3 represents one of many production opportunities being advanced by Orbital UAV. These development and production opportunities include a broad range of established defence prime contractors and potential market disruptors. Orbital UAV’s near-term strategy is to convert engine development contracts into future high volume production opportunities.

Orbital UAV’s ambition is to expand existing production contracts and convert existing development contracts over the next four years such that the Company captures 20 per cent of the relevant UAV engine market, resulting in significant revenue growth and high profitability.

Orbital UAV maintains its revenue guidance of $20-$25 million for financial year 2023. The Company’s latest investor update presentation (17 October 2022) can be viewed here.