OSI Systems Inc. (NASDAQ:OSIS) announced that its Security division has been awarded an Undefinitized Contract Action with a ceiling value of approximately $235 million to produce and integrate a homeland defense over-the-horizon radar transmit subsystem.
The deal represents roughly 13% of the company’s annual revenue of $1.8 billion and comes as the firm, with a market capitalization of about $4.8 billion, trades near its 52-week high.
Advanced radar system for long-range tracking
The radar system is designed to detect and track targets at long distances beyond traditional line-of-sight limitations, enhancing homeland defense capabilities.
Initial funding for the contract stands at $46 million to support early program execution, with additional funding expected to follow to keep the project on schedule.
CEO highlights core capabilities
“This award highlights our strengths in critical radio frequency engineering, advanced manufacturing, and complex system integration for mission-critical defense applications,” said Ajay Mehra, President and Chief Executive Officer of OSI Systems.
Diversified operations and recent performance
OSI Systems develops and manufactures specialized electronic systems for critical-use applications across three segments: Security, Optoelectronics and Manufacturing, and Healthcare. Its Security unit focuses on inspection and screening technologies.
The company’s stock has gained approximately 51% over the past year.
Recent developments
In other updates, OSI Systems reported fiscal second-quarter 2026 results with a non-GAAP adjusted EPS of $2.58, beating expectations of $2.52.
The company also recently secured a separate multi-year contract worth over $40 million to supply electronic sub-assemblies to a medical device manufacturer, although details on the customer and contract duration were not disclosed.
These developments highlight continued momentum in both its defense and healthcare-related businesses.