Orbital Corporation Ltd. (Orbital UAV, the Company) announced a contract of work has been signed to support engine development work for Anduril Industries (Anduril). Anduril is a US-based defence products company transforming US, Australian and allied military capabilities with its advanced technologies. Engine upgrade pathway The initial contract will see Orbital UAV's engineering team ­ working with Anduril ­ determine an engine upgrade pathway for one of Anduril's uncrewed aircraft system (UAS) programs. This program of work is due to be completed in the first half of financial year 2023 and will deliver to Anduril a costed scope of work for the engine upgrade.

Subject to Anduril's approval of the engine upgrade pathway, Orbital UAV expects to be contracted and complete this development work in the second half of Fiscal year 2023. At this time both Anduril and Orbital UAV will evaluate the potential production responsibilities and volume requirements of the engine. Orbital UAV and Anduril signed a Memorandum of Understanding and have moved swiftly to identify opportunities to collaborate on existing and new programs of work.

Earlier this year, Anduril representatives reviewed Orbital UAV's operations and heavy fuel engine capabilities in Western Australia. Members of the Orbital UAV team subsequently visited Anduril's California, USA headquarters to review programs of work Anduril currently has underway and to scope out the initial upgrade pathway contract. The initial contract does not affect Orbital UAV's Fiscal year 2023 revenue forecast of $20 million-$25 million.