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Orbit International Corp. Reports 2025 Second Quarter Results

Second Quarter 2025 Net Loss of $1,290,000 ($0.39 loss per share) v. Net Loss of $201,000 ($0.06 loss per share) in Prior Year Comparable Period

Second Quarter 2025 EBITDA, As Adjusted, was a loss of $1,049,000 ($0.32 loss per share) v. a loss of $405,000 ($0.12 loss per share) in Prior Year Comparable Period

Six Months 2025 Net Loss of $3,442,000 ($1.03 loss per share) v. Net Loss of $952,000 ($0.28 loss per share) in Prior Year Comparable Period

Six Months 2025 EBITDA, As Adjusted, was a loss of $2,998,000 ($0.90 loss per share) v. a loss of $965,000 ($0.29 loss per share) in Prior Year Comparable Period

Backlog at June 30, 2025 was $12.5 million compared to $12.0 million at December 31, 2024

Company Commences Effort to Trim Costs at SPS Subsidiary to Better Align with Projected Revenue

HAUPPAUGE, N.Y., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTCID Basic Market:ORBT) today announced results for the second quarter and six months ended June 30, 2025.

Second Quarter 2025 vs. Second Quarter 2024

• Net sales were $5,213,000, as compared to $6,601,000.
• Gross margin was 26.9%, as compared to 29.5%.
• Net loss was $1,290,000 ($0.39 loss per share), as compared to a net loss of $201,000 ($0.06 loss per share).
• Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation (EBITDA, as adjusted) was a loss of $1,049,000 ($0.32 loss per share), as compared to loss of $405,000 ($0.12 loss per share).

Six Months 2025 vs. Six Months 2024

• Net sales were $9,939,000 as compared to $12,776,000.
• Gross margin was 20.0%, as compared to 30.1%.
• Net loss was $3,442,000 ($1.03 loss per share), as compared to net loss of $952,000 ($0.28 loss per share).
• Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation (EBITDA, as adjusted) was a loss of $2,998,000 ($0.90 loss per share), as compared to a loss of $965,000 ($0.29 loss per share).
• Backlog at June 30, 2025 was $12.5 million compared to $13.3 million at March 31, 2025 and $12.0 million at December 31, 2024.

Mitchell Binder, President and CEO of Orbit International commented, 鈥淲hen we released our first quarter results, we have noted that the second quarter and first half for 2025 would be a very challenging period for our Company. Although our operating results improved in the second quarter as compared to the first quarter, they remained weak due to lower sales resulting from soft bookings in the second half of 2024. Bookings in the second half of 2024 were affected by several order delays on follow on business from our customers. Our net loss for the six months ended June 30, 2025, was $3,442,000 ($1.03 loss per share) compared to a net loss of $952,000 ($0.28 loss per share) for the prior comparable period. EBITDA, as adjusted, for the six months ended June 30, 2025, was a loss of $2,998,000 ($0.90 loss per share) compared to a loss of $965,000 ($0.29 loss per share) in the prior comparable period.

Binder added, 鈥淥ur current second quarter operating results were negatively affected by significantly lower sales by our Orbit Electronics Group (鈥淥EG鈥�) inclusive of our Simulator Product Solutions LLC (鈥淪PS鈥�) subsidiary. In particular, our Orbit Instrument division experienced an operating loss due to a gap in its delivery schedules. Our Orbit Instrument division has historically been our best performing operating unit with strong operating leverage. However, it was adversely affected by contract delays in the second half of 2024 and a temporary pause in certain production contracts as our engineering team worked with our customers for next generation enhancements. The Orbit Power Group (鈥淥PG鈥�), which makes up the remainder of our legacy business, recorded marginal profitability for the first half of 2025. Our consolidated operating loss for the second quarter was approximately $1,231,000 and our EBITDA, as adjusted, loss was $1,049,000.鈥�

Binder added, 鈥淥perating results for SPS were adversely impacted by lower sales during the first half of 2025, particularly in the first quarter, a consequence of reduced bookings in the second half of 2024 caused by contract delays that were eventually awarded in 2025. Bookings were also negatively affected by ongoing opportunities that have not yet finalized in 2025 and certain lost opportunities, primarily due to lack of funding or our customer losing awards to competitors. Bookings for SPS in 2025 have since improved from the second half of 2024. In addition, we had incurred significant infrastructure costs in 2023 and 2024 in order to support SPS鈥� sales increase since the Company鈥檚 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. Our cost reduction efforts are expected to reduce annual SPS expenses by approximately $750,000.鈥�

Binder noted, 鈥淥perating results for the six months and three months ended June 30, 2025 for SPS were also burdened by expenses of more than $483,000 ($0.15 loss per share) and $283,000 ($0.08 loss per share), respectively. These expenses included fees paid to an outside engineering firm to modify legacy drawings, along with bill of material part identification that was developed prior to the acquisition. These expenses also included a non-cash increase to our contingent liability and legal fees incurred in connection with a litigation associated with the SPS acquisition and the termination of the former President of SPS that was commenced in November 2024 in the Delaware Court of Chancery.鈥�

Mr. Binder added, 鈥淥ur sales for the six months ended June 30, 2025, decreased significantly to $9,939,000 compared to $12,776,000 from the prior year comparable period. This decrease in sales was primarily attributable to significantly lower sales at our OEG and relatively flat sales at our OPG. As previously mentioned, the lower sales at our OEG were attributable to lower bookings in the second half of 2024 due primarily to contract delays, which are an inherent risk in contracting with the U.S. government and its prime contractors. We expect sales levels at our OEG, particularly our Orbit Instrument division, to improve in the second half of 2025 based on delivery schedules resulting from improved bookings in the first half of 2025.鈥�

Mr. Binder further added, 鈥淥ur gross margin for the six months ended June 30, 2025, decreased to 20.0% compared to 30.1% in the prior year comparable period. The decrease in gross margin during the six months ended June 30, 2025, primarily reflected significantly lower OEG gross margins. OEG gross margins were negatively affected by decreased sales which resulted in a higher percentage of overhead and other fixed costs relative to sales. The gross margin decrease also reflected a slightly lower gross margin at our OPG due to product mix.鈥�

Mr. Binder added, 鈥淔or the six months ended June 30, 2025, selling, general and administrative expenses were $5,348,000, compared to $5,191,000 during the prior year comparable period, an increase of $157,000. The increase was primarily due to higher SPS expenses that were partially offset by lower OPG expenses and lower corporate expenses. The increase in selling, general and administrative expenses at SPS were principally due to approximately more than $245,000 of expenses incurred for (i) an outside engineering firm engaged to modify legacy drawings as well as bill of material part identification that was developed prior to the acquisition and (ii) legal fees incurred in connection with the litigation associated with the SPS acquisition and the termination of the former President of SPS. The engineering firm was needed to conform drawing documentation to the actual manufacturing procedures to build SPS products as well as to comply with internal inventory controls. This was in addition to more than $200,000 in engineering fees that were incurred in the fourth quarter of 2024.鈥�

Mr. Binder continued, 鈥淏acklog at June 30, 2025, was approximately $12,500,000 compared to approximately $12,000,000 at December 31, 2024, an increase of approximately 4.2%. This increase in backlog is reflective of a general increase in bookings from our OEG, inclusive of SPS, and despite a decrease in bookings from our OPG during the first six months of 2025. In 2024, for our OPG, bookings for our VPX power supplies increased by 91.5% over the prior comparable period and represented the highest amount of VPX bookings in any previous calendar year. We are hopeful that the momentum of continued bookings for our VPX power supplies will continue, particularly in the second half of 2025. Bookings for our OEG, inclusive of SPS, improved in the first half of 2025 and are expected to continue to improve as many anticipated follow-on awards, expected in the second half of 2024, were delayed, resulting in a poor second half of bookings for the segment. Some of these orders were received in the first half of 2025 and are now expected to continue to be received during the second half of 2025. Contract delays are an inherent part of doing business with the U.S. Government.鈥�

David Goldman, Chief Financial Officer, noted, 鈥淎t June 30, 2025, our cash and cash equivalents aggregated approximately $0.4 million and our financial condition is solid as evidenced by our 2.1 to 1 current ratio. We have borrowed $1,675,000 under our $4,000,000 Line of Credit (鈥淟OC鈥�) as of June 30, 2025. The LOC expired on August 1, 2025 and we are in the process of amending and extending the LOC with our bank which should be completed by August 31, 2025. Our book value per share at June 30, 2025 was $4.31, which compares to $4.69 at March 31, 2025 and $5.34 at December 31, 2024. (Note: book value per share does not include any additional value for our partially reserved deferred tax asset.) To offset future federal and state taxes resulting from profits, we have approximately $2.4 million and $0.4 million in available federal and New York State net operating loss carryforwards, respectively.鈥�

Mr. Binder added, 鈥淏ecause 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 six months ended June 30, 2025 resulted from weak bookings in the second half of 2024 that emanated from contract delays. This led to a significant gap in delivery schedules during the first six months of 2025. Some of these contracts were awarded in the first half of 2025 and some represent ongoing opportunities that we have not yet finalized with our customer. We reported at year end that these contract delays would adversely affect our operating performance in the first half of 2025. Because of the improved bookings in the first half of 2025 and our expectation of improved bookings throughout our operating units, barring unforeseen delays, we expect these awards to fill in our delivery schedules and lead to an improvement to operating results in the second half of 2025.

Mr. Binder concluded, 鈥淲e continue to evaluate the impact of tariff announcements and are evaluating their impact on the cost of our products and, in particular, our VPX power supplies, which recorded significant sales growth in 2024 and is expected to be the driver of the growth of our OPG in the future. We are addressing the tariffs in a number of ways, including a pass through to our customers, adjusting our pricing, negotiating with our vendors or seeking out alternative sources. We鈥檝e been proactive in moving certain of our foreign vendors to countries that are not expected to be materially affected by tariffs鈥�

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鈥檚 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鈥檚 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.

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(See Accompanying Tables)

(1)听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, fair value adj.-contingent liabilities (earn-out) and other non-current liability, contingent liability (legal matter) and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.