OSI Systems Receives $27 Million Order for Airport Security Systems

Rhea-AI Summary

OSI Systems (NASDAQ: OSIS) announced that its Security division has secured a $27 million order for airport security systems from an international customer. The order encompasses multiple security solutions including the RTT® 110 explosive detection system for hold baggage, Orion® 920CT checkpoint screening system with Rapiscan® TRS™, Orion 928DX for air cargo and pallet screening, and Itemiser® 5X for trace detection of explosives and narcotics. The comprehensive order demonstrates the company's ability to provide integrated security solutions that meet international airport security standards.

Positive

• Secured significant $27 million contract for security systems
• Demonstrates strong market position in airport security technology
• Order includes multiple product lines, showing broad portfolio strength

Negative

• None.

Insights

Security Technology Analyst

The $27 million order represents a comprehensive security systems deployment that significantly strengthens OSI's position in the aviation security market. The multi-system package demonstrates strong customer confidence in OSI's full-spectrum security solutions. The RTT® 110 and Orion® 920CT systems incorporate advanced computed tomography technology, offering superior threat detection capabilities compared to traditional X-ray systems, while the Itemiser® 5X adds critical trace detection capabilities that complement the imaging systems.

This order is particularly strategic as it includes both checkpoint and hold baggage screening solutions, indicating a complete terminal security upgrade rather than just a partial enhancement. The integration of the TRS™ system with the Orion® 920CT shows the customer's focus on both security and operational efficiency. The addition of the Orion 928DX for air cargo screening further expands the security coverage to include freight operations, suggesting this may be a major international hub modernization project.

For context, typical airport security system deployments range from $5-50 million, placing this $27 million order in the mid-to-upper range of standard contracts. The timing aligns with the global trend of airports upgrading their security infrastructure to meet evolving threats and regulatory requirements.

Financial Analyst

This contract represents approximately 1% of OSI Systems' annual revenue, making it a meaningful but not transformative order. The significance lies in the comprehensive nature of the deal, which should provide higher margins due to the mix of advanced technology products. The order's diverse product range also creates opportunities for recurring revenue through maintenance contracts and potential future expansions.

The timing of this order, early in the calendar year, provides good momentum for OSI's Security division, which typically contributes about 60% of the company's total revenue. The international nature of the customer helps diversify geographic revenue streams and reduces dependence on domestic markets. Based on typical project implementation timelines, revenue recognition from this order will likely span 12-18 months, contributing to steady cash flow visibility.

The stock's reaction should be moderately positive, as this order reinforces OSI's competitive position in the airport security market and demonstrates continued demand for its advanced security solutions. The comprehensive nature of the order could serve as a reference case for similar airport modernization projects globally.

HAWTHORNE, Calif.--(BUSINESS WIRE)-- OSI Systems, Inc. (the “Company” or “OSI Systems”) (NASDAQ: OSIS) today announced that its Security division received an order for approximately $27 million to provide a range of checkpoint and hold baggage screening solutions to an international customer. Among the systems to be delivered are the RTT^® 110 (Real Time Tomography) explosive detection system for screening hold baggage, Orion^® 920CT (Computed Tomography) checkpoint screening system integrated with Rapiscan^® TRS™ (Tray Return System) for inspecting carry-on items, Orion 928DX for screening air cargo and pallets, and Itemiser^® 5X for detecting trace amounts of explosives and narcotics.

OSI Systems’ President and CEO, Ajay Mehra, commented, "We are excited to receive this award. Our broad portfolio of aviation security products gives customers tremendous flexibility to optimize their security infrastructure and meet critical international airport security standards utilizing our latest technologies.”

About OSI Systems

OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense, and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end-product markets. For more information on OSI Systems or any of its subsidiary companies, visit www.osi-systems.com. News Filter: OSIS-G

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to OSI Systems’ current expectations, beliefs, and projections concerning matters that are not historical facts. Forward-looking statements are not guarantees of future performance and involve uncertainties, risks, assumptions, and contingencies, many of which are outside OSI Systems’ control and which may cause actual results to differ materially from those described in or implied by any forward-looking statements. Undue reliance should not be placed on forward-looking statements, which are based on currently available information and speak only as of the date on which they are made. OSI Systems assumes no obligation to update any forward-looking statement made in this press release that becomes untrue because of subsequent events, new information, or otherwise, except to the extent it is required to do so in connection with its ongoing requirements under Federal securities laws. For a further discussion of factors that could cause OSI Systems’ future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in OSI Systems’ most recently filed Annual Report on Form 10-K and other risks described therein and in documents subsequently filed by OSI Systems from time to time with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250106793947/en/

OSI Systems, Inc.

Ajay Vashishat

Vice President, Business Development

310-349-2237

avashishat@osi-systems.com

Source: OSI Systems, Inc.

FAQ

What is the value of OSI Systems' recent airport security systems order?

OSI Systems (OSIS) received a $27 million order for various airport security systems from an international customer.

What security products are included in OSI Systems' $27M airport order?

The order includes RTT® 110 explosive detection system, Orion® 920CT checkpoint screening system with Rapiscan® TRS™, Orion 928DX for cargo screening, and Itemiser® 5X for trace detection.

When did OSIS announce its latest airport security systems contract?

OSI Systems (OSIS) announced the $27 million airport security systems contract in their latest press release.

Which markets will OSI Systems' new security order serve?

The $27 million order will serve an international customer, though the specific country or region was not disclosed in the announcement.