Actelis Networks has secured a major contract to upgrade Orange County's intelligent transportation system (ITS) infrastructure, marking another strategic expansion in the company's growing portfolio of critical infrastructure networking solutions. The contract, placed through partner Western Systems, positions Actelis to enhance traffic management in one of California's most populous counties.
The Orange County project follows recent significant orders in military base modernization and railway infrastructure, demonstrating Actelis' ability to deliver secure, high-performance networking technologies across diverse sectors. By leveraging hybrid-fiber technology, the company offers fiber-grade performance using existing infrastructure, which translates to substantial cost savings and accelerated project timelines.
The contract comes on the heels of impressive financial performance in fiscal year 2024, where Actelis reported a 38% revenue increase to $7.8 million and doubled its gross margins to 55%. These results reflect the company's strategic positioning in rapidly expanding markets such as smart cities and intelligent transportation systems.
With the global smart cities market projected to reach $300 billion by 2032 and the intelligent transportation segment expected to hit $65.33 billion, Actelis is establishing a competitive foothold in these high-growth sectors. The company's networking solutions, which include Department of Defense-certified security and JITC FIPS certification, make it an attractive partner for mission-critical infrastructure projects.
Financial analyst Theodore O'Neill from Litchfield Hills Research has highlighted Actelis' potential, maintaining a Buy rating with a $5 price target. He noted the company's positive trajectory, emphasizing that Actelis shares are currently trading at a significant discount compared to industry peers.
The Orange County contract represents more than a single municipal project; it symbolizes a broader trend of technological modernization in critical infrastructure. By providing cost-effective, secure networking solutions, Actelis is helping municipalities and government agencies upgrade aging infrastructure with minimal disruption and maximum efficiency.
As cities and military installations increasingly prioritize digital transformation, Actelis Networks appears well-positioned to meet the growing demand for advanced, secure networking technologies that can rapidly deploy across complex environments.
