Orbit International Corp. Reports 2026 Second Quarter Results

Second Quarter 2026 Net Loss of $1,720,000 ($0.51 loss per share) v. Net Loss of $1,290,000 ($0.39 loss per share) in Prior Year Comparable Period

Second Quarter 2026 EBITDA, As Adjusted, was a loss of $1,218,000 ($0.36 loss per share) v. a loss of $1,049,000 ($0.32 loss per share) in Prior Year Comparable Period

Six Months 2026 Net Loss of $3,266,000 ($0.98 loss per share) v. Net Loss of $3,442,000 ($1.03 loss per share) in Prior Year Comparable Period

Six Months 2026 EBITDA, As Adjusted, was a loss of $2,531,000 ($0.76 loss per share) v. a loss of $2,998,000 ($0.90 loss per share) in Prior Year Comparable Period

Backlog at June 30, 2026 was $13.1 million compared to $12.3 million at December 31, 2025

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 to 26.9%.
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 to 20.0%.
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 $1,400,000 Orbit Power Group (“OPG”) shipment that had been scheduled to be shipped in the second half of 2025. Instead, the order was shipped during the first quarter of 2026. This shipment, combined with year-to date firm bookings, increased revenues and improved operating margins for our OPG, resulted in higher profitability for the segment, which helped mitigate the operating loss for the three and six months ended June 30, 2026. Our net loss for the six months ended June 30, 2026, was $3,266,000 ($0.98 loss per share) compared to a net loss of $3,442,000 ($1.03 loss per share) for the prior comparable period. EBITDA, as adjusted, for the six months ended June 30, 2026, was a loss of $2,531,000 ($0.76 loss per share) compared to a loss of $2,998,000 ($0.90 loss per share) in the prior comparable period.

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 $1,599,000 and our EBITDA, as adjusted, loss was $1,218,000.”

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 $10,132,000 compared to $9,939,000 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. As previously mentioned, our delivery schedules for the Orbit Instrument division points to improved sales in the fourth quarter of 2026.”

Mr. Binder further added, “Our gross margin for the six months ended June 30, 2026, increased to 24.8% compared to 20.0% in the prior year comparable period. This improvement primarily reflected significantly higher gross margins from our OPG, driven by increased sales, as well as improved gross margins from SPS due to slightly higher sales and a favorable product mix. These gains were partially offset by lower gross margins at our Orbit Instrument division, where decreased sales resulted in a higher percentage of overhead and other fixed costs relative to sales.”

Mr. Binder added, “For the six months ended June 30, 2026, selling, general and administrative expenses were $5,575,000, compared to $5,348,000 during the prior year comparable period, an increase of $227,000. The increase was primarily due to higher corporate costs resulting from stock compensation expense of approximately $230,000 attributable to our senior executive, who agreed to defer payment until the first quarter of 2028. Exclusive of the deferred compensation, selling, general and administrative costs for the six months ended June 30, 2026 slightly decreased from the prior comparable period due to lower costs at our Orbit Instrument division and our OPG that were partially offset by higher expenses at SPS principally due to higher legal costs.”

Mr. Binder continued, “Backlog at June 30, 2026, was approximately $13,100,000 compared to approximately $12,300,000 at December 31, 2025, an increase of approximately 6.5%. This increase in backlog was due to a general increase in backlog from our OEG inclusive of SPS, despite a decrease in backlog from our OPG. The decrease in backlog from our OPG was due to shipments of units in the current first quarter as a result of the aforementioned supply chain issue and despite relatively strong bookings for the segment during the first six months of 2026. Our Orbit Instrument division faced numerous delays on follow-on contracts from its customers throughout the 2025 year and certain of these delays continued into the first half of 2026. These delays affected shipping in the first half of 2026. As a result, despite weak bookings in the first half of 2026, backlog nevertheless increased due to lower shipments. SPS backlog at June 30, 2026 did not materially change from its backlog at December 31, 2025. Since January 1, 2026, proposals to its customers have increased by 16.6% over the prior comparable period. However, there is no guarantee that awards for these proposals will be received or that, if received, will be 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, “Borrowings under our current Line of Credit (“LOC”) were $4,500,000 at June 30, 2026. We are expecting to close on a new $6,000,000 line of credit facility with an asset based lender in the next few weeks. Our book value per share at June 30, 2026 was $2.85, which compares to $3.37 at March 31, 2026 and $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 $10.0 million and $1.0 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 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 $5,000,000 waiting to be awarded. Although we expected a portion of these awards to be placed during the second quarter, they have been further delayed to the second half of 2026. Timing of the receipt of these awards is again an uncertainty. ”

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 87.8% over the comparable year period. In addition, SPS has seen proposals increase by 16.6% over the prior comparable period although bookings are lower due to a delay in the award of some of the contracts. Assuming no significant delays, we expect bookings at SPS to improve from the prior year. 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 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