OSI Systems announced a contract win for a major sporting event in Europe, securing screening technology for people, baggage, and cargo at the venue.
The contract, awarded to OSI’s Security division, will deploy the CertScan platform to operate and maintain the equipment, turning a one‑time hardware sale into recurring service revenue.
While the contract value remains undisclosed, the win adds a high‑profile customer and reinforces OSI’s strategy of expanding recurring revenue streams. The deal follows Q1 2026 earnings where OSI beat EPS expectations by $0.05 and revenue by $12 million, driven by strong demand in its core security segments.
Management highlighted the strategic importance of the contract, noting that securing high‑profile venues supports the company’s broader push into recurring service revenue and positions OSI to capture future contracts for similar events. CEO Ajay Mehra said the company is honored to protect a celebrated sporting event and that the CertScan platform will provide flexible, scalable security solutions.
The contract win complements recent pipeline activity, including a $30 million RF‑based systems order, a $36 million aviation security contract, and a $47 million maintenance order, underscoring a robust order backlog approaching $1.9 billion and a book‑to‑bill ratio above 1.1.
The deal signals continued demand for OSI’s security solutions and supports the company’s raised FY 2026 revenue guidance of $1.825‑$1.867 billion and non‑GAAP EPS guidance of $10.20‑$10.48, reflecting confidence in sustained growth and margin expansion.
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