Orbital UAV (OEC) Partners with Carbonix for RPAS

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Orbital Corporation Ltd

  • ASX Code: OEC
  • Market Cap: $33,127,105
  • Shares On Issue (SOI): 179,065,432
  • Cash: $3,685,000 (as of 28 October 2025)

Orbital UAV (ASX: OEC) Announces Partnership with Carbonix for Sovereign Drone Development

In a recent ASX announcement, Australian aerospace company Orbital UAV Limited (ASX: OEC) has formalised a partnership with Carbonix through a Memorandum of Understanding (MOU). The Orbital UAV Carbonix partnership will focus on integrating Orbital’s heavy fuel engine (HFE) propulsion systems into Carbonix’s established Ottano UAV platform. This collaboration aims to produce a next-generation Australian Remotely Piloted Aircraft System (RPAS) designed for long-endurance missions.

This development is a key validation of Orbital UAV’s ‘Mission Ready Engine’ approach, which involves offering core heavy fuel engines with non-military specifications to broaden its market beyond defence contracts. The agreement positions both Sydney-based companies to address the growing demand for Beyond Visual Line of Sight (BVLOS) operations in commercial and defence sectors, whilst simultaneously strengthening Australia’s sovereign aerospace manufacturing capability.

How does the Orbital UAV Carbonix partnership advance Australian RPAS technology?

The collaboration between Orbital UAV and Carbonix combines specialised expertise to create a superior, Australian-made RPAS platform. Carbonix contributes its proficiency in long-endurance composite airframe design, while Orbital UAV provides its proven HFE propulsion technology. This investor update highlights a significant step in creating an end-to-end Australian solution.

The integration aims to deliver enhanced performance and reliability for demanding long-range missions. By developing a platform with full sovereign control over its critical components, from airframe to engine, the partnership directly supports national security imperatives by reducing reliance on foreign technology and securing supply chains.

Integration Framework Benefits:

Component Carbonix Contribution Orbital UAV Contribution
Airframe Design Composite expertise, Ottano platform Propulsion system optimisation
Propulsion Integration and testing protocols HFE technology and support systems
Operational Ability BVLOS operational experience Enhanced endurance via fuel efficiency
Manufacturing Australian production facilities Engine manufacturing and quality control

What are the capabilities of the integrated Ottano UAV platform?

The integration of Orbital UAV’s HFE systems into the Carbonix Ottano airframe is set to produce notable operational advantages. The primary benefit is a significant extension of flight endurance, a critical factor for effective BVLOS operations where sustained flight time is essential.

Heavy fuel engines offer superior energy density compared to electric alternatives, allowing for longer missions and improved payload capacity. This makes the integrated platform suitable for a wide range of applications, including commercial surveillance, agricultural monitoring, and large-scale infrastructure inspection.

Anticipated Performance Advantages:

  • Extended flight endurance due to HFE fuel efficiency.
  • Improved payload capacity for diverse commercial and defence sensors.
  • Enhanced reliability for critical long-range missions.
  • Reduced operational costs by minimising the need for multiple short-endurance flights.

This Orbital UAV Carbonix partnership is designed to deliver a platform that meets the rigorous demands of customers requiring persistent aerial capabilities.

Why is the Mission Ready Engine important for Orbital UAV’s growth?

Orbital UAV’s ‘Mission Ready Engine’ approach is a calculated move to diversify revenue streams and expand market access. By offering non-military specification versions of its core engine technology, the company can penetrate the growing commercial UAV market whilst maintaining its established position in the defence sector.

CEO Stephen Pearce commented on this approach, stating, “The MOU with Carbonix validates Orbital UAV’s new ‘Mission Ready Engine’ approach of offering the existing range of Orbital core heavy fuel engines with non-military specifications.”

Key Market Expansion Opportunities:

  • Opens new revenue streams beyond traditional defence procurement cycles.
  • Enables entry into commercial markets such as agriculture, mining, and infrastructure inspection.
  • Leverages existing research and development investments across multiple market segments.

This business model allows Orbital UAV to target customers needing long-endurance capabilities without the regulatory overhead and cost structures associated with military-grade systems, tapping into rapidly expanding commercial sectors.

What does this mean for investors?

For shareholders, the Orbital UAV Carbonix partnership presents several potential catalysts and indicators of the company’s progress. The success of this collaboration will serve as a proof-of-concept for the ‘Mission Ready Engine’ model and its ability to generate value.

Investors should monitor key milestones following this announcement, including updates on integration testing, performance validation, and any initial customer demonstrations or contracts. Announcements of further partnerships under the ‘Mission Ready Engine’ banner would also signal successful market penetration and scalability.

The Orbital UAV Carbonix partnership firmly aligns both companies with government priorities favouring sovereign capability, potentially creating advantages in future procurement decisions. This positioning, combined with the growing demand for long-endurance UAVs in both commercial and defence markets, provides a solid foundation for future growth.

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John Zadeh
By John Zadeh
Founder & CEO
John Zadeh is a seasoned small-cap investor and digital media entrepreneur with over 10 years of experience in Australian equity markets. As Founder and CEO of StockWire X, he leads the platform's mission to level the playing field by delivering real-time ASX announcement analysis and comprehensive investor education to retail and professional investors globally.
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