Cubic Corp. [CUB] on Thursday released preliminary financial results, lowering its earnings and sales expectations for its 2016 fiscal year that ended in September due to order delays from the Pentagon, but the defense and transportation company expects these orders to flow in the new fiscal year.

Cubic said adjusted earnings before interest, taxes, depreciation and amortization are expected to be between $112 million and $120 million in FY ’16, down from the previous guidance of between $130 million to $145 million.

Sales in FY ’16 are expected to be between $1.4 billion and $1.5 billion, down from prior guidance of between $1.5 billion to $1.6 billion.

Cubic said the funding delays are mainly for higher margin business with its Mission Solutions and Training Systems businesses within the Defense Systems segment.

“We are disappointed by the shortfall in the fourth quarter performance which impacted our FY ’16 financial results,” Bradley Feldmann, president and CEO of Cubic, said in a statement. “We fully expect that the delayed orders will be received in fiscal year 2017 and we continue to expect improved performance in 2017.”

The news sent the company’s shares down more than 11 percent in trading on Thursday, with the stock closing at $40.03, off $4.99 from Wednesday’s close.

Cubic expects to release its year-end results in late November and provide a detailed outlook for FY ’17.