Orbit International Corp. Reports 2026 Second Quarter Results
Rhea-AI Summary
Orbit International (OTC Basic Market: ORBT) reported a second quarter 2026 net loss of $1.72 million ($0.51 per share), compared with a net loss of $1.29 million ($0.39 per share) a year earlier, on net sales of $4.89 million versus $5.21 million. Q2 2026 gross margin was 26.5% versus 26.9%, and EBITDA, as adjusted, was a loss of $1.22 million compared with a $1.05 million loss.
For the first six months of 2026, net sales were $10.13 million versus $9.94 million, with gross margin improving to 24.8% from 20.0%. Net loss narrowed to $3.27 million ($0.98 per share) from $3.44 million, and EBITDA, as adjusted, improved to a loss of $2.53 million from a $3.00 million loss. Backlog at June 30, 2026 was $13.1 million, up from $12.3 million at year-end 2025.
Positive
- Six‑month 2026 net loss improved to $3.27M from $3.44M
- Six‑month 2026 gross margin rose to 24.8% from 20.0%
- Six‑month 2026 EBITDA (as adjusted) loss improved to $2.53M from $3.00M
- Backlog at June 30, 2026 increased to $13.1M, up ~6.5% from $12.3M
- Six‑month 2026 net sales grew to $10.13M from $9.94M
Negative
- Q2 2026 net loss widened to $1.72M from $1.29M
- Q2 2026 EBITDA (as adjusted) loss increased to $1.22M from $1.05M
- Selling, general and administrative expenses for six months 2026 rose to $5.58M from $5.35M
- Interest expense for six months 2026 nearly tripled to $147K from $52K
- Book value per share fell to $2.85 at June 30, 2026 from $3.83 at year‑end 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Net Loss of
Second Quarter 2026 EBITDA, As Adjusted, was a loss of
Six Months 2026 Net Loss of
Six Months 2026 EBITDA, As Adjusted, was a loss of
Backlog at June 30, 2026 was
HAUPPAUGE, N.Y., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTCID Basic Market:ORBT) today announced results for the second quarter and six months ended June 30, 2026.
Second Quarter 2026 vs. Second Quarter 2025
- Net sales were
$4,887,000 , as compared to$5,213,000 . - Gross margin was
26.5% , as compared to26.9% . - Net loss was
$1,720,000 ($0.51 loss per share), as compared to a net loss of$1,290,000 ($0.39 loss per share). - Earnings before interest, taxes, depreciation and amortization, contingent liability adjustment, and stock-based compensation (EBITDA, as adjusted) was a loss of
$1,218,000 ($0.36 loss per share), as compared to loss of$1,049,000 ($0.32 loss per share).
Six Months 2026 vs. Six Months 2025
- Net sales were
$10,132,000 as compared to$9,939,000 . - Gross margin was
24.8% , as compared to20.0% . - Net loss was
$3,266,000 ($0.98 loss per share), as compared to net loss of$3,442,000 ($1.03 loss per share). - Earnings before interest, taxes, depreciation and amortization, contingent liability adjustment, and stock-based compensation (EBITDA, as adjusted) was a loss of
$2,531,000 ($0.76 loss per share), as compared to a loss of$2,998,000 ($0.90 loss per share). - Backlog at June 30, 2026 was
$13.1 million compared to$13.2 million at March 31, 2026 and$12.3 million at December 31, 2025.
Mitchell Binder, President and CEO of Orbit International commented, “Once again, lower than anticipated bookings in the second half of 2025 affected our delivery schedules thereby decreasing our revenue and operating performance for the first half of 2026, particularly for our Orbit Instrument division. However, a single supply chain issue delayed a
Binder added, “Our operating results for the six months ended June 30, 2026 were negatively affected by significantly lower sales by our Orbit Electronics Group (“OEG”) exclusive of our Simulator Product Solutions LLC (“SPS”) subsidiary. In particular, our Orbit Instrument division experienced a significant operating loss as a result of gaps in its delivery schedules caused by the aforementioned customer delays in awarding follow-on sole source contracts. Our Orbit Instrument division has historically been our best performing operating unit with strong operating leverage. However, it has been adversely affected by contract delays and a temporary pause in certain production contracts as our engineering team worked with our customers for next generation enhancements. Delivery schedules are expected to significantly improve in the fourth quarter of 2026. Our OPG, which makes up the remainder of our legacy business, recorded strong profitability for the first half of 2026. Our consolidated operating loss for the second quarter was approximately
Binder added, “Operating results for SPS for the six months ended June 30, 2026 were adversely impacted by lower than expected sales during the first half of 2026, particularly in the first quarter, a consequence of reduced bookings in the second half of 2025 caused by contract delays that were eventually awarded in 2026. However, operating results were significantly improved from the prior comparable period as gross margins have increased and costs tightly controlled. Assuming bookings begin to improve as a result of an increase in proposals outstanding, we expect that improved operating results should continue throughout 2026. ”
Binder added, “We anticipated an increase in costs at SPS at the time of acquisition to invest in infrastructure and internal controls in order to bring SPS up to the standards of a public company. The actual costs incurred post-acquisition exceeded those anticipated costs. Beginning in 2024, 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 while maintaining strong internal controls. Despite the cost trimming, operating results for SPS for the current quarter were also adversely affected by higher selling and general administrative costs as a result of higher legal fees in connection with a previously disclosed litigation and another legal matter which has since been settled.”
Mr. Binder added, “Our sales for the six months ended June 30, 2026, slightly increased to
Mr. Binder further added, “Our gross margin for the six months ended June 30, 2026, increased to
Mr. Binder added, “For the six months ended June 30, 2026, selling, general and administrative expenses were
Mr. Binder continued, “Backlog at June 30, 2026, was approximately
David Goldman, Chief Financial Officer, noted, “Borrowings under our current Line of Credit (“LOC”) were
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 June, 30, 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 delayed contracts at the end of the year and in the first half of 2026. In addition, the number of proposals for follow-on business has grown with outstanding proposals from this division totaling in excess of
Mr. Binder concluded, “Despite the delays at the Orbit Instrument division, bookings at our OPG continue to improve as bookings through July 31, 2026 have increased by
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 facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including VPX, COTS (Commercial Off-The-Shelf) and commercial power supplies.
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
(See Accompanying Tables)
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net sales | $ | 4,887 | $ | 5,213 | $ | 10,132 | $ | 9,939 | ||||||||
| Cost of sales | 3,594 | 3,813 | 7,619 | 7,951 | ||||||||||||
| Gross profit | 1,293 | 1,400 | 2,513 | 1,988 | ||||||||||||
| Selling general and administrative | ||||||||||||||||
| expenses | 2,892 | 2,631 | 5,575 | 5,348 | ||||||||||||
| Interest expense | 93 | 33 | 147 | 52 | ||||||||||||
| Other expense (income), net | 20 | 29 | 41 | 22 | ||||||||||||
| Loss before income taxes | (1,712 | ) | (1,293 | ) | (3,250 | ) | (3,434 | ) | ||||||||
| Income tax provision (benefit) | 8 | (3 | ) | 16 | 8 | |||||||||||
| Net loss | $ | (1,720 | ) | $ | (1,290 | ) | $ | (3,266 | ) | $ | (3,442 | ) | ||||
| Basic loss per share | $ | (0.51 | ) | $ | (0.39 | ) | $ | (0.98 | ) | $ | (1.03 | ) | ||||
| Diluted loss per share | $ | (0.51 | ) | $ | (0.39 | ) | $ | (0.98 | ) | $ | (1.03 | ) | ||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic | 3,341 | 3,330 | 3,340 | 3,329 | ||||||||||||
| Diluted | 3,341 | 3,330 | 3,340 | 3,329 | ||||||||||||
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| EBITDA (as adjusted) Reconciliation | ||||||||||||||||
| Net loss | $ | (1,720 | ) | $ | (1,290 | ) | $ | (3,266 | ) | $ | (3,442 | ) | ||||
| Income tax expense (benefit) | 8 | (3 | ) | 16 | 8 | |||||||||||
| Depreciation and amortization | 143 | 169 | 286 | 339 | ||||||||||||
| Interest expense | 93 | 33 | 147 | 52 | ||||||||||||
| Contingent liability adjustment | 25 | 38 | 50 | 38 | ||||||||||||
| Stock-based compensation | 233 | 4 | 236 | 7 | ||||||||||||
| EBITDA (as adjusted)(1) | $ | (1,218 | ) | $ | (1,049 | ) | $ | (2,531 | ) | $ | (2,998 | ) | ||||
| EBITDA (as adjusted) Per Diluted Share Reconciliation | ||||||||||||||||
| Net loss | $ | (0.51 | ) | $ | (0.39 | ) | $ | (0.98 | ) | $ | (1.03 | ) | ||||
| Income tax expense (benefit) | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
| Depreciation and amortization | 0.04 | 0.05 | 0.09 | 0.10 | ||||||||||||
| Interest expense | 0.03 | 0.01 | 0.04 | 0.02 | ||||||||||||
| Contingent liability adjustment | 0.01 | 0.01 | 0.02 | 0.01 | ||||||||||||
| Stock-based compensation | 0.07 | 0.00 | 0.07 | 0.00 | ||||||||||||
| EBITDA (as adjusted), per diluted share(1) | $ | (0.36 | ) | $ | (0.32 | ) | $ | (0.76 | ) | $ | (0.90 | ) | ||||
(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.
| Six Months Ended June 30, | ||||||||
| Reconciliation of EBITDA, as adjusted, to cash flows provided by (used in) operating activities(1) | 2026 | 2025 | ||||||
| EBITDA (as adjusted) | $ | (2,531 | ) | $ | (2,998 | ) | ||
| Income tax expense | (16 | ) | (8 | ) | ||||
| Interest expense | (147 | ) | (52 | ) | ||||
| Contingent liability adjustment | (50 | ) | (38 | ) | ||||
| Inventory reserves | 89 | 19 | ||||||
| Stock-based compensation | (216 | ) | 14 | |||||
| Amortization of right-of-use assets | 383 | 362 | ||||||
| Net change in operating assets and liabilities | (373 | ) | 1,098 | |||||
| Cash flows used in operating activities | $ | (2,861 | ) | $ | (1,603 | ) | ||
| Orbit International Corp. Consolidated Balance Sheet | |||||||
| June 30, 2026 (unaudited) | December 31, 2025 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | - | $ | 684,000 | |||
| Accounts receivable, less allowance for credit losses | 3,406,000 | 2,985,000 | |||||
| Inventories | 9,062,000 | 8,472,000 | |||||
| Contract assets | 407,000 | 1,420,000 | |||||
| Other current assets | 557,000 | 307,000 | |||||
| Total current assets | 13,432,000 | 13,868,000 | |||||
| Property and equipment, net | 771,000 | 892,000 | |||||
| Right of use assets, operating leases | 1,387,000 | 1,770,000 | |||||
| Right of use assets, financing leases | 19,000 | 38,000 | |||||
| Goodwill | 3,515,000 | 3,515,000 | |||||
| Intangible assets, net | 1,959,000 | 2,080,000 | |||||
| Other assets | 51,000 | 51,000 | |||||
| Total assets | $ | 21,134,000 | $ | 22,214,000 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,964,000 | $ | 1,079,000 | |||
| Accrued expenses | 1,097,000 | 1,020,000 | |||||
| Notes payable | 42,000 | 67,000 | |||||
| Lease liabilities, operating leases | 831,000 | 807,000 | |||||
| Lease liabilities, financing leases | 21,000 | 41,000 | |||||
| Contingent liability | 1,500,000 | 1,450,000 | |||||
| Line of credit | 4,500,000 | 2,475,000 | |||||
| Customer advances | 752,000 | 1,404,000 | |||||
| Total current liabilities | 10,707,000 | 8,343,000 | |||||
| Notes payable, net of current portion | 265,000 | 43,000 | |||||
| Lease liabilities, operating leases | 621,000 | 1,041,000 | |||||
| Total liabilities | 11,593,000 | 9,427,000 | |||||
| Stockholders’ Equity | |||||||
| Common stock | 353,000 | 353,000 | |||||
| Additional paid-in capital | 17,232,000 | 17,212,000 | |||||
| Treasury stock | (1,224,000 | ) | (1,224,000 | ) | |||
| Accumulated deficit | (6,820,000 | ) | (3,554,000 | ) | |||
| Stockholders’ equity | 9,541,000 | 12,787,000 | |||||
| Total liabilities and stockholders’ equity | $ | 21,134,000 | $ | 22,214,000 | |||
