- Orbital Corporation (OEC) has secured an engine development and supply deal with Textron subsidiary Lycoming Engines
- Orbital and Lycoming will jointly conduct a 12-month program to integrate Orbital’s unmanned aerial vehicle (UAV) engines to Textron Systems
- Once the engine development program has wrapped up, the deal will transition to an engine supply contract where Orbital will supply engines, spare parts and support services for at least five year
- It will be up to Lycoming to add five more one-year extensions to complete the full 10-year term
- Orbital ended the day 6.86 per cent in the green with shares closing at 93.5 cents
Orbital Corporation (OEC) has secured an engine development and supply deal with Textron subsidiary Lycoming Engines.
The agreement involves a 12-month engine development program which will integrate Orbital’s unmanned aerial vehicle (UAV) engines to Textron Systems’ Aerosonde program.
Textron Systems is another subsidiary of the billion-dollar industrial company and is a world-leader in unmanned aircraft systems. It’s also one of the largest suppliers of tactical UAVs to the U.S. armed forces.
Once the engine development program has wrapped up, the deal will transition to an engine supply contract. This phase of the deal will see Orbital supply engines, spare parts and support services for at least five years. Lycoming then has the discretion to call for five more one-year extensions to complete the full 10-year term.
“We are delighted to announce this major new collaboration with Lycoming and to be working with Textron Systems on a joint development program,” Orbital CEO and Managing Director Todd Alder said.
“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,” Textron Systems Senior Vice President of Air Systems Wayne Prender said.
While it isn’t certain, Orbital says the 10-year deal may contribute to future revenues.
Orbital ended the day 6.86 per cent in the green with shares closing at 93.5 cents.