OSI Systems announced a $30 million multi‑year contract to deploy advanced radio‑frequency (RF) communication and surveillance systems for naval operations. The award, granted by an international customer whose identity has not been disclosed, will span several years and provide a stable, recurring revenue stream for the company.
The contract supports OSI’s strategic pivot toward high‑margin, service‑based contracts. The company has set a target of more than 40 % of its security business coming from recurring revenue, and this multi‑year deal adds a predictable cash flow that aligns with that objective.
The award follows a series of recent wins, including a $76 million airport screening order in March 2025, a $20 million radiological threat detection solution, and a $37 million RF communications contract in October 2025. Together, these contracts have expanded OSI’s backlog and reinforced its position in critical security sectors.
CEO Ajay Mehra said the award underscores OSI’s commitment to delivering cutting‑edge RF solutions that enhance operational readiness and security. The multi‑year nature of the contract provides predictable cash flow and demonstrates the company’s ability to secure complex, high‑value projects.
While the contract itself did not trigger a significant market reaction, it reinforces OSI’s recurring revenue strategy and supports the company’s broader financial performance. In the first quarter of fiscal 2026, OSI reported record revenue of $385 million and raised its fiscal 2026 guidance, reflecting confidence in continued demand for its security solutions.
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