2025 Net Loss of $5,025,000 ($1.51 loss per share) vs. Net Loss of $646,000 ($0.19 loss per share) in 2024
2025 EBITDA, As Adjusted, was a loss of $3,971,000 ($1.19 loss per share) vs. earnings of $159,000 ($0.05 per diluted share) in 2024
Fourth Quarter 2025 Net Loss of $708,000 ($0.21 loss per share) vs. Net Loss of $252,000 ($0.08 loss per share) in Prior Year Period
Fourth Quarter 2025 EBITDA, As Adjusted, was a loss of $465,000 ($0.14 loss per share) vs. earnings of $383,000 ($0.11 per diluted share) in Prior Year Period
Backlog at December 31, 2025 was approximately $12.2 million compared to approximately $12.0 million at December 31, 2024
HAUPPAUGE, N.Y., March 18, 2026 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTCID Basic Market:ORBT) today announced results for the fourth quarter and the year ended December 31, 2025.
Fourth Quarter 2025 vs. Fourth Quarter 2024
- Net sales were $6,726,000, as compared to $8,708,000.
- Gross margin was 28.6%, as compared to 34.6%.
- Net loss was $708,000 ($0.21 loss per share), as compared to net loss of $252,000 ($0.08 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 $465,000 ($0.14 loss per share), as compared to earnings of 383,000 ($0.11 per diluted share).
Full Year 2025 vs. Full Year 2024
- Net sales were $22,450,000, as compared to $29,898,000.
- Gross margin was 25.6%, as compared to 33.3%.
- Net loss was $5,025,000 ($1.51 loss per share), as compared to a net loss of $646,000 ($0.19 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 $3,971,000 ($1.19 loss per share), as compared to earnings of $159,000 ($0.05 per diluted share).
- Backlog at December 31, 2025 was $12.2 million compared to $12.0 million at December 31, 2024.
Mitchell Binder, President and CEO of Orbit International commented, "Unfortunately, 2025 was a very challenging period for our Company. Lower anticipated bookings in 2024 and the first half of 2025 affected 2025 delivery schedules for our various business units. Delivery schedules were lined up more favorably in the second half of 2025; however, a single supply chain issue undermined significant scheduled shipments to an Orbit Power Group ("OPG") customer during the third and fourth quarters and approximately $1,400,000, scheduled for delivery in the second half of 2025, was delayed until the first quarter of 2026. Although the units were substantially completed in 2025 and our customer paid approximately 89% of the total order purchase price, we were unable to recognize revenue of approximately $1,400,000. Had we been able to recognize this revenue in 2025, our operating loss for the year would have been reduced by approximately $700,000. Our net loss for the twelve months ended December 31, 2025, was $5,025,000 ($1.51 loss per share) compared to a net loss of $646,000 ($0.19 loss per share) for the prior comparable period. EBITDA, as adjusted, for the twelve months ended December 31, 2025, was a loss of $3,971,000 ($1.19 loss per share) compared to earnings of $159,000 ($0.05 per diluted share) in the prior comparable period. Operating results were also adversely affected by legal fees incurred by our Simulator Product Solutions LLC ("SPS") subsidiary."
Binder added, "Our current fourth quarter operating results were negatively affected by the aforementioned delayed shipment from our OPG as well as lower sales by SPS. In addition, our fourth quarter was adversely affected by several one-time charges. Despite higher sales from our Orbit Instrument division, higher than expected outside test service costs were incurred in connection with the qualification of newly designed units on three separate programs. Our consolidated net loss for the fourth quarter was approximately $708,000 ($0.21 loss per share) and our EBITDA, as adjusted, loss was $465,000 ($0.14 loss per share). However, exclusive of the incremental outside test service cost incurred, the legal fees incurred in connection with the termination of the former President of SPS, a settlement payment concerning another SPS matter, and an approximately $109,000 loss of profitability due to the previously mentioned single supply chain issue, our EBITDA, as adjusted would have been a loss of approximately $91,000."
Binder noted, "Operating results for SPS for the three months and twelve months ended December 31, 2025, were adversely impacted by lower sales in the current and twelve month periods, a consequence of reduced bookings in the second half of 2024 and lower than expected bookings throughout 2025. Prior period revenues during 2024 were positively impacted by higher bookings during the 2023 fiscal year. 2025 bookings were also negatively affected by ongoing opportunities that were not yet finalized in 2025 and certain lost opportunities, primarily due to lack of funding or our customers losing awards to competitors. However, bookings for SPS in 2025 did slightly improve from bookings in 2024 and proposals for new and follow-on opportunities have significantly increased. In addition, we incurred significant infrastructure costs in 2023 and 2024 in order to support SPS' sales increase since the Company's 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."
Mr. Binder added, "Our sales for the twelve months ended December 31, 2025, decreased significantly to $22,450,000 compared to $29,898,000 from the prior year comparable period. This decrease in sales was primarily attributable to significantly lower sales at both our Orbit Electronics Group ("OEG") and our OPG although the reduction at OPG was directly attributable to the aforementioned supply chain issue. 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."
Mr. Binder further added, "Our gross margin for the twelve months ended December 31, 2025, decreased to 25.6% compared to 33.3% in the prior year comparable period. The decrease in gross margin during the twelve months ended December 31, 2025, primarily reflected significantly lower SPS and OPG gross margins due to a reduction in sales which resulted in a higher percentage of overhead and other fixed costs relative to sales. The decrease in gross margin at our OPG was due to lower sales as a result of the previously mentioned aforementioned supply chain issue as well as a higher percentage of lower margin commercial sales in the fourth quarter."
Mr. Binder added, "For the twelve months ended December 31, 2025, selling, general and administrative expenses were $10,375,000, compared to $10,439,000 during the prior year comparable period, a decrease of $64,000. The decrease was primarily due to lower expenses at our Orbit Instrument division, our OPG and lower corporate costs, and despite an increase of more than $400,000 in SPS expenses. The increase in selling, general and administrative expenses at SPS was principally due to more than $360,000 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; (ii) legal fees incurred in connection with the litigation associated with the SPS acquisition and the termination of the former President of SPS and (iii) legal fees in connection with a settlement payment concerning a matter that originated prior to the acquisition in 2022. 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."
Mr. Binder continued, "Backlog at December 31, 2025, was approximately $12,200,000 compared to approximately $12,000,000 at December 31, 2024, an increase of approximately 1.7%. This increase in backlog is reflective of a general increase in backlog from our OPG and SPS, and despite a decrease in backlog from our Orbit Instrument division and Q-Vio Corp. ("Q-Vio") subsidiary for the 2025 calendar year. Our Orbit Instrument division faced numerous delays on follow-on contracts from its customers throughout the year. Absent these delays, we would have had approximately $1,400,000 in additional bookings in 2025. We are now expecting these bookings in the first half of 2026. SPS recorded firm bookings at the end of 2025 and since January 1, 2026 have approximately $5,000,000 in proposals to its customers. Contract delays are an inherent part of doing business with the U.S. Government."
David Goldman, Chief Financial Officer, noted, "At December 31, 2025, our cash and cash equivalents aggregated approximately $684,000 and borrowings under our $4,000,000 Line of Credit ("LOC") were $2,475,000. Our book value per share at December 31, 2025 was $3.83, which compares to $4.04 at September 30, 2025 and $5.34 at December 31, 2024. (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 twelve months ended December 31, 2025, resulted from weak bookings in the second half of 2024 and 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 contracts at the end of the year, the number of proposals for follow-on business has grown with outstanding proposals from this division totaling approximately $4,750,000 waiting to be awarded. A portion of these awards are expected in the first half of 2026 although timing of the receipt of these awards is an uncertainty. "
Mr. Binder concluded, "Improved bookings from both our OPG and SPS subsidiary have carried over into the 2026 year. In particular, since January 1, 2026, SPS has proposed approximately $5,000,000 in new and follow-on business which does not include proposals made prior to year-end which could also result in new purchase orders. Last, Q-Vio has quoted certain new and follow-on opportunities and continues to work on two new projects with its customers that could result in significant awards. However, these awards would not be expected until 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 facilities in Hauppauge, NY and Carson, CA. 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 International Corp.'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 International Corp. 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 Corp.'s ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International Corp. and the statements contained in this news release can be found in Orbit International Corp.'s reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit International Corp. claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit International Corp. 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) | ||||||||||||||||
| Three Months Ended December 31, (unaudited) | Year Ended December 31, (unaudited) (audited) | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net sales | - | 6,726 | - | 8,708 | - | 22,450 | - | 29,898 | ||||||||
| Cost of sales | 4,805 | 5,695 | 16,696 | 19,945 | ||||||||||||
| Gross profit | 1,921 | 3,013 | 5,754 | 9,953 | ||||||||||||
| Selling general and administrative | 2,502 | 2,716 | 10,375 | 10,439 | ||||||||||||
| expenses | ||||||||||||||||
| Interest expense | 53 | 86 | 159 | 119 | ||||||||||||
| Other expense (income), net | 69 | (3 | - | 109 | (436 | - | ||||||||||
| (Loss) income before income taxes | (703 | - | 214 | (4,889 | - | (169 | - | |||||||||
| Income tax provision | 5 | 466 | 136 | 477 | ||||||||||||
| Net loss | - | (708 | - | - | (252 | - | - | (5,025 | - | - | (646 | - | ||||
| Basic loss per share | - | (0.21 | - | - | (0.08 | - | - | (1.51 | - | - | (0.19 | - | ||||
| Diluted loss per share | - | (0.21 | - | - | (0.08 | - | - | (1.51 | - | - | (0.19 | - | ||||
| Weighted average number of shares outstanding- | ||||||||||||||||
| Basic | 3,334 | 3,339 | 3,331 | 3,343 | ||||||||||||
| Diluted | 3,334 | 3,339 | 3,331 | 3,343 | ||||||||||||
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| EBITDA (as adjusted) Reconciliation | ||||||||||||||||
| Net loss | - | (708 | - | - | (252 | - | - | (5,025 | - | - | (646 | - | ||||
| Income tax expense | 5 | 466 | 136 | 477 | ||||||||||||
| Depreciation and amortization | 157 | 79 | 658 | 582 | ||||||||||||
| Interest expense | 53 | 86 | 159 | 119 | ||||||||||||
| Fair value adj-contingent liabilities (earn-out) & other non-current liability | - | - | - | (387 | - | |||||||||||
| Contingent liability (legal matter) | 25 | - | 88 | - | ||||||||||||
| Stock-based compensation | 3 | 4 | 13 | 14 | ||||||||||||
| EBITDA (as adjusted)(1) | - | (465 | - | - | 383 | - | (3,971 | - | - | 159 | ||||||
| EBITDA (as adjusted) Per Diluted Share Reconciliation | ||||||||||||||||
| Net loss | - | (0.21 | - | - | (0.08 | - | - | (1.51 | - | - | (0.19 | - | ||||
| Income tax expense | 0.00 | 0.14 | 0.04 | 0.14 | ||||||||||||
| Depreciation and amortization | 0.05 | 0.02 | 0.20 | 0.17 | ||||||||||||
| Interest expense | 0.01 | 0.03 | 0.05 | 0.04 | ||||||||||||
| Fair value adj-contingent liabilities (earn-out) & other non-current liability | 0.00 | 0.00 | 0.00 | (0.11 | - | |||||||||||
| Contingent liability (legal matter) | 0.01 | 0.00 | 0.03 | 0.00 | ||||||||||||
| Stock-based compensation | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
| EBITDA (as adjusted), per diluted share (1) | - | (0.14 | - | - | 0.11 | - | (1.19 | - | - | 0.05 | ||||||
(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, 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.
| Year Ended December 31, | ||||||||
| Reconciliation of EBITDA, as adjusted, to cash flows provided by (used in) operating activities(1) | 2025 | 2024 | ||||||
| EBITDA (as adjusted) | - | (3,971 | - | - | 159 | |||
| Income tax expense | (36 | - | (32 | - | ||||
| Interest expense | (159 | - | (119 | - | ||||
| Fair value adj-contingent liabilities (earn-out) and other non-current liability | - | 387 | ||||||
| Contingent liability (legal matter) | (88 | - | - | |||||
| Stock-based compensation | 28 | 29 | ||||||
| Amortization of right-of-use assets | 739 | - | ||||||
| Net change in operating assets and liabilities | 1,377 | (425 | - | |||||
| Cash flows used in operating activities | - | (2,110 | - | - | (1 | - | ||
| Orbit International Corp. Consolidated Balance Sheet | ||||||
| December 31, 2025 (unaudited) | December 31, 2024 (audited) | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | - | 684,000 | - | 1,355,000 | ||
| Accounts receivable, less allowance for credit losses | 2,985,000 | 3,935,000 | ||||
| Inventories | 8,472,000 | 8,884,000 | ||||
| Contract assets | 1,420,000 | 643,000 | ||||
| Other current assets | 307,000 | 428,000 | ||||
| Total current assets | 13,868,000 | 15,245,000 | ||||
| Property and equipment, net | 892,000 | 1,192,000 | ||||
| Right of use assets, operating leases | 1,770,000 | 2,297,000 | ||||
| Right of use assets, financing leases | 38,000 | 77,000 | ||||
| Goodwill | 3,515,000 | 3,515,000 | ||||
| Intangible assets, net | 2,080,000 | 2,322,000 | ||||
| Deferred tax asset | - | 100,000 | ||||
| Other assets | 51,000 | 53,000 | ||||
| Total assets | - | 22,214,000 | - | 24,801,000 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | 1,079,000 | 878,000 | ||||
| Accrued expenses | 1,020,000 | 990,000 | ||||
| Notes payable | 67,000 | 99,000 | ||||
| Lease liabilities, operating leases | 807,000 | 717,000 | ||||
| Lease liabilities, financing leases | 41,000 | 38,000 | ||||
| Contingent liability | 1,450,000 | 1,362,000 | ||||
| Customer advance | 1,404,000 | 296,000 | ||||
| Line of credit | 2,475,000 | 850,000 | ||||
| Total current liabilities | 8,343,000 | 5,230,000 | ||||
| Notes payable, net of current portion | 43,000 | 83,000 | ||||
| Lease liability, operating lease | 1,041,000 | 1,678,000 | ||||
| Lease liability, financing lease | - | 41,000 | ||||
| Total liabilities | 9,427,000 | 7,032,000 | ||||
| Stockholders' Equity | ||||||
| Common stock | 353,000 | 351,000 | ||||
| Additional paid-in capital | 17,212,000 | 17,171,000 | ||||
| Treasury stock | (1,224,000 | - | (1,224,000 | - | ||
| (Accumulated deficit) retained earnings | (3,554,000 | - | 1,471,000 | |||
| Stockholders' equity | 12,787,000 | 17,769,000 | ||||
| Total liabilities and stockholders' equity | - | 22,214,000 | - | 24,801,000 | ||
