Orbit International Corp. Reports 2026 First Quarter Results
First Quarter 2026 Net Loss of $1,546,000 ($0.46 loss per share) v. Net Loss of $2,152,000 ($0.65 loss per share) in Prior Year Comparable Period
First Quarter 2026 EBITDA, as adjusted, was a loss of $1,313,000 ($0.39 loss per share) v. loss of $1,949,000 ($0.59 loss per share) in Prior Year Comparable Period
Backlog at March 31, 2026 was $13.2 million compared to $12.3 million at December 31, 2025
HAUPPAUGE, N.Y., May 14, 2026 (GLOBE NEWSWIRE) — Orbit International Corp. (OTCID Basic Market:ORBT) today announced results for the first quarter ended March 31, 2026.
First Quarter 2026 vs. First Quarter 2025
- Net sales were $5,245,000, as compared to $4,726,000.
- Gross margin was 23.3%, as compared to 12.4%.
- Net loss was $1,546,000 ($0.46 loss per share), as compared to a net loss of $2,152,000 ($0.65 loss per share).
- Earnings before interest, taxes, depreciation and amortization, contingent liability adjustment, and stock-based compensation (EBITDA, as adjusted) was a loss of $1,313,000 ($0.39 loss per share), as compared to a loss of $1,949,000 ($0.59 loss per share).
- Backlog at March 31, 2026 was $13.2 million compared to $12.3 million at December 31, 2025.
Mitchell Binder, President and CEO of Orbit International commented, “Lower than anticipated bookings in 2024 and the first half of 2025 affected our 2025 delivery schedules and operating performance and carried over to the first quarter of 2026, particularly for our Orbit Instrument division. In addition, a single supply chain issue delayed a $1,400,000 Orbit Power Group (“OPG”) shipment that had been scheduled for the third and fourth quarters of 2025. Instead, the order was shipped during the first quarter of 2026. This shipment boosted sales for our OPG for the current quarter, which resulted in profitability for the segment and helped mitigate the operating loss. Our net loss for the three months ended March 31, 2026, was $1,546,000 ($0.46 loss per share) compared to a net loss of $2,152,000 ($0.65 loss per share) for the prior comparable period. EBITDA, as adjusted, for the three months ended March 31, 2026, was a loss of $1,313,000 ($0.39 loss per share) compared to a loss of $1,949,000 ($0.59 loss per share) in the prior comparable period.
Binder added, “Our current first quarter operating results were negatively affected by weak shipments from our Orbit Instrument division, which resulted from significant delays for the awards of follow-on business throughout 2025. Some of the delays for additional business awards are continuing and are attributable to the engineering and qualification of newly designed units on three separate programs. Our Orbit Instrument division has historically been our most profitable operating unit.”
Binder noted, “Operating results for our Simulator Product Solutions LLC (“SPS”) subsidiary for the three months ended March 31, 2026, were adversely impacted by lower sales, a consequence of lower-than-expected bookings in the second half of 2025. However, operating results were significantly improved from the prior comparable period and assuming recent improved booking trends continue, we expect that improved operating results should continue throughout 2026. The improved operating results were as a result of increased sales and gross profit in the current period as compared to the prior comparable period. Bookings for SPS in 2025 improved from bookings in 2024 and this positive trend continued in the first quarter of 2026 as proposals for new and follow-on opportunities have significantly increased.”
Binder added, “We incurred significant costs at SPS in 2023 and 2024 in order to support SPS’ sales increase since the Company’s acquisition of the SPS business in 2022. At the time of the SPS acquisition, we anticipated the need to invest in infrastructure and internal controls in order to bring SPS up to the standards of a public company. However, after several quarters of personnel and cost increases, we have taken precautionary measures to trim certain costs as we continue to align our organization to support our growth while striving to improve our operating results. Despite the cost trimming, operating results for SPS for the current quarter were also adversely by higher selling and general administrative costs as a result of higher legal fees in connection with a previously disclosed litigation.”
Mr. Binder added, “Our sales for the three months ended March 31, 2026, increased to $5,245,000 compared to $4,726,000 from the prior year comparable period. This increase in sales was primarily attributable to significantly higher sales at our OPG and SPS and was offset by significantly lower sales from our Orbit Instrument division. As previously mentioned, the lower sales at our OEG were attributable to lower bookings in the second half of 2024 and throughout 2025 due primarily to contract delays, which are an inherent risk in contracting with the U.S. government and its prime contractors.”
Mr. Binder further added, “Our gross margin for the three months ended March 31, 2026, increased to 23.3% compared to 12.4% in the prior year comparable period. The increase in gross margin during the three months ended March 31, 2026, primarily reflected significantly higher SPS and OPG gross margins due to an increase in sales. The higher margins were offset by a significant reduction in gross margin from our Orbit Instrument division due to significantly lower sales, which resulted in a higher percentage of overhead and other fixed costs relative to sales. The total amount of consolidated sales and resulting gross margin for the three months ended March 31, 2026 was improved from the comparable period of the prior year but was still below the critical amount of sales and gross margin needed to achieve operating profitability.”
Mr. Binder added, “For the twelve months ended March 31, 2026, selling, general and administrative expenses were $2,683,000 compared to $2,717,000 during the prior year comparable period, a decrease of $34,000. The decrease was primarily due to lower expenses at our OPG and at SPS (despite higher legal fees) and lower corporate costs, and despite an increase in costs at our Orbit Instrument division.”
Mr. Binder continued, “Backlog at March 31, 2026, was approximately $13,200,000 compared to approximately $12,300,000 at December 31, 2025, an increase of approximately 7.3%. This increase in backlog is due to a general increase in backlog from our OEG inclusive of SPS, and despite a decrease in backlog from our OPG. The decrease in backlog from our OPG was due to shipments of units in the current quarter as a result of the aforementioned supply chain issue and despite a strong booking quarter for the segment. Our Orbit Instrument division faced numerous delays on follow-on contracts from its customers throughout the year and certain of these delays continued into the first quarter of 2026. We are now expecting these bookings in the first half of 2026. SPS recorded firm bookings at the end of 2025 and the first quarter of 2026. Since January 1, 2026, proposals to its customers have reached in excess of $12,000,000, although there is no guarantee that awards for these proposals will be received or for the values that have been proposed. Contract delays are an inherent part of doing business with the U.S. Government.”
David Goldman, Chief Financial Officer, noted, “At March 31, 2026, our cash and cash equivalents aggregated approximately $389,000 and borrowings under our $4,500,000 Line of Credit (“LOC”) were $3,725,000. Our book value per share at March 31, 2026 was $3.37, which compares to $3.83 at December 31, 2025. (Note: book value per share does not include any additional value for our fully reserved deferred tax asset.) To offset future federal and state taxes resulting from profits, we have approximately $11.7 million and $1.1 million in available federal and New York State net operating loss carryforwards, respectively.
Mr. Binder added, “Because our revenues are tied to delivery schedules specified in our contracts, it is often difficult to judge our performance on a quarterly basis. Our operating results for the three months ended March 31, 2026, resulted from weak bookings throughout 2025 that primarily emanated from contract delays. These contract delays have particularly affected our Orbit Instrument division, which has historically been our most profitable business. Although we received some of the contracts at the end of the year, the number of proposals for follow-on business has grown with outstanding proposals from this division totaling in excess of $5,000,000 waiting to be awarded. A portion of these awards are expected in the first half of 2026 although timing of the receipt of these awards is an uncertainty.”
Mr. Binder concluded, “Improved bookings from both our OPG and SPS subsidiary have carried over into the 2026 year. In particular, as previously mentioned, since January 1, 2026, SPS has proposed approximately $12,000,000 in new and follow-on business, an increase of approximately 70% over the prior year. This does not include proposals made prior to year-end, which could result in new purchase orders. Bookings at our OPG through April 30, 2026 are up over 100% from the prior comparable period and bookings for our VPX power supplies have increased by 118% over the prior comparable period. In addition, Q-Vio recently announced that it has quoted certain prototype orders in support of the next generation handheld unit to replace the Defense Advanced Receiver (DAGR) used by U.S. and foreign military services. However, production awards would not be expected before sometime during the 2027 calendar year.”
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, New York and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International’s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit’s reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | |||||||
| Three Months Ended March 31, (unaudited) | |||||||
| 2026 | 2025 | ||||||
| Net sales | $ | 5,245 | $ | 4,726 | |||
| Cost of sales | 4,025 | 4,138 | |||||
| Gross profit | 1,220 | 588 | |||||
| Selling general and administrative expenses | 2,683 | 2,717 | |||||
| Interest expense | 54 | 19 | |||||
| Other expense (income), net | 21 | (7 | ) | ||||
| Loss before income taxes | (1,538 | ) | (2,141 | ) | |||
| Income tax provision | 8 | 11 | |||||
| Net loss | $ | (1,546 | ) | $ | (2,152 | ) | |
| Basic loss per share | $ | (0.46 | ) | $ | (0.65 | ) | |
| Diluted loss per share | $ | (0.46 | ) | $ | (0.65 | ) | |
| Weighted average number of shares outstanding: | |||||||
| Basic | 3,339 | 3,327 | |||||
| Diluted | 3,339 | 3,327 | |||||
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| EBITDA (as adjusted) Reconciliation | ||||||||
| Net loss | $ | (1,546 | ) | $ | (2,152 | ) | ||
| Income tax expense | 8 | 11 | ||||||
| Depreciation and amortization | 143 | 170 | ||||||
| Interest expense | 54 | 19 | ||||||
| Contingent liability adjustment | 25 | – | ||||||
| Stock-based compensation | 3 | 3 | ||||||
| EBITDA (as adjusted) (1) | $ | (1,313 | ) | $ | (1,949 | ) | ||
| EBITDA (as adjusted) Per Diluted Share Reconciliation | ||||||||
| Net loss | $ | (0.46 | ) | $ | (0.65 | ) | ||
| Income tax expense | 0.00 | 0.00 | ||||||
| Depreciation and amortization | 0.04 | 0.05 | ||||||
| Interest expense | 0.02 | 0.01 | ||||||
| Contingent liability adjustment | 0.01 | 0.00 | ||||||
| Stock-based compensation | 0.00 | 0.00 | ||||||
| EBITDA (as adjusted) per diluted share (1) | $ | (0.39 | ) | $ | (0.59 | ) | ||
(1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity’s profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes, contingent liability adjustment and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.
| Three Months Ended March 31, | |||||||||||
| Reconciliation of EBITDA, as adjusted, to cash flows provided by (used in) operating activities (1) | 2026 | 2025 | |||||||||
| EBITDA (as adjusted) | $ | (1,313 | ) | $ | (1,949 | ) | |||||
| Income tax expense | (8 | ) | (11 | ) | |||||||
| Interest expense | (54 | ) | (19 | ) | |||||||
| Contingent liability adjustment | (25 | ) | – | ||||||||
| Stock-based compensation | 7 | 7 | |||||||||
| Net change in operating assets and liabilities | (87 | ) | 1,353 | ||||||||
| Cash flows used in by operating activities | $ | (1,480 | ) | $ | (619 | ) | |||||
| Orbit International Corp. Consolidated Balance Sheets | ||||||
| March 31, 2026 (unaudited) | December 31, 2025 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 389,000 | $ | 684,000 | ||
| Accounts receivable, less allowance for credit losses | 2,991,000 | 2,985,000 | ||||
| Inventories | 8,487,000 | 8,472,000 | ||||
| Contract assets | 1,226,000 | 1,420,000 | ||||
| Other current assets | 422,000 | 307,000 | ||||
| Total current assets | 13,515,000 | 13,868,000 | ||||
| Property and equipment, net | 854,000 | 892,000 | ||||
| Right of use assets, operating leases | 1,580,000 | 1,770,000 | ||||
| Right of use assets, financing leases | 29,000 | 38,000 | ||||
| Goodwill | 3,515,000 | 3,515,000 | ||||
| Intangible assets | 2,020,000 | 2,080,000 | ||||
| Other assets | 51,000 | 51,000 | ||||
| Total assets | $ | 21,564,000 | $ | 22,214,000 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 1,550,000 | $ | 1,079,000 | ||
| Accrued expenses | 1,137,000 | 1,020,000 | ||||
| Notes payable | 45,000 | 67,000 | ||||
| Lease liabilities, operating leases | 821,000 | 807,000 | ||||
| Lease liabilities, financing leases | 31,000 | 41,000 | ||||
| Contingent liability | 1,475,000 | 1,450,000 | ||||
| Line of credit | 3,725,000 | 2,475,000 | ||||
| Customer advances | 651,000 | 1,404,000 | ||||
| Total current liabilities | 9,435,000 | 8,343,000 | ||||
| Notes payable, net of current portion | 45,000 | 43,000 | ||||
| Lease liabilities, operating leases | 833,000 | 1,041,000 | ||||
| Total liabilities | 10,313,000 | 9,427,000 | ||||
| Stockholders’ Equity | ||||||
| Common stock | 353,000 | 353,000 | ||||
| Additional paid-in capital | 17,222,000 | 17,212,000 | ||||
| Treasury stock | (1,224,000 | ) | (1,224,000 | ) | ||
| Retained earnings (accumulated deficit) | (5,100,000 | ) | (3,554,000 | ) | ||
| Stockholders’ equity | 11,251,000 | 12,787,000 | ||||
| Total liabilities and stockholders’ equity | $ | 21,564,000 | $ | 22,214,000 | ||
