The CEO of ORBT has outlined the company's performance challenges and future projections. Due to contract delays in late 2024, ORBT experienced weak bookings, affecting its first-quarter performance significantly. Despite these setbacks, some contracts were awarded in the first quarter, and there are ongoing opportunities yet to be finalized with customers. These factors contributed to a rough start for 2025, as anticipated by year-end forecasts.
Looking ahead, ORBT expects improved results in the second quarter, although still impacted by last year's contract delays. Positive bookings in the first quarter and anticipated improvements across the company's divisions suggest that delivery schedules will stabilize, leading to better second-half results this year.
The company is also addressing tariff impositions, particularly concerning its VPX power supplies, which saw substantial sales growth in 2024 and are key to future growth. ORBT is mitigating tariff impacts by passing costs to customers, adjusting prices, negotiating with suppliers, and sourcing from less affected countries. These proactive measures aim to cushion the impact on costs and sustain growth momentum.
