OSI Systems secures $56 million security equipment contract

Published 20/05/2025, 13:38
OSI Systems secures $56 million security equipment contract

HAWTHORNE, Calif. - OSI Systems, Inc. (NASDAQ:OSIS), a provider of specialized electronic systems for security applications, has been awarded a $56 million contract to supply security inspection equipment to an undisclosed international customer. The contract includes the delivery and deployment of the Eagle® M60 ZBx mobile cargo and vehicle inspection systems, as well as the ZBV® Z Backscatter® vehicle screening systems, designed for port and border security uses. The new contract adds to OSI Systems’ strong performance, with the company’s stock up over 63% in the past year and currently trading near its 52-week high of $233.80. According to InvestingPro analysis, the company is currently trading above its Fair Value.

The Eagle® M60 ZBx is a multi-energy, mobile system for scanning large trucks, buses, and cargo containers, while the ZBV® Z Backscatter® system is intended for detecting threats such as explosives, drugs, currency, and trade-fraud items. Alongside the hardware, OSI Systems will also provide maintenance and training support for the equipment.

Ajay Mehra, President and CEO of OSI Systems, expressed the company’s honor in receiving the award and emphasized the importance of their platforms in enhancing global trade security and safety.

OSI Systems has operated for over 40 years as a designer and manufacturer of electronic systems for homeland security, healthcare, defense, and aerospace industries. The company operates internationally with offices and production facilities in multiple countries.

The contract award is a testament to OSI Systems’ role in the security sector, and the company’s systems are expected to bolster the international customer’s capabilities in managing threats at ports and border crossings.

It is important to note that the information provided in this article is based on a press release statement from OSI Systems, Inc. and no further details about the international customer or the specific applications of the systems were disclosed.

In other recent news, OSI Systems, Inc. reported strong financial results for the third quarter of fiscal year 2025, surpassing analyst expectations. The company achieved a record non-GAAP adjusted earnings per share (EPS) of $2.44, exceeding the forecasted $2.41, and reported revenue of $444 million, which also beat projections. Additionally, OSI Systems secured a significant $36 million contract to supply airport security screening solutions at a major international airport in the Middle East. The company has also been awarded a $7 million order from a major healthcare technology company for its Optoelectronics and Manufacturing division.

Oppenheimer has raised its price target for OSI Systems to $260, maintaining an Outperform rating, citing the company’s strong backlog and diverse project pipeline. This comes as OSI Systems continues to expand its presence in various sectors, including healthcare and security. The company recently won a $76 million contract for an international airport project, marking its largest win in the airport vertical. Furthermore, OSI Systems has increased its fiscal 2025 revenue and EPS guidance, indicating strong future growth prospects. These developments highlight OSI Systems’ robust demand and operational efficiency across its divisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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