<PAGE>
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
 
                                   FORM 10-Q
 
                                QUARTERLY REPORT
 
        Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
                        For the Quarter Ended March 31, 1998 

                                     1-8931
                                     ------
                              COMMISSION FILE NUMBER
 
                               CUBIC CORPORATION
             EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER
 
           DELAWARE                                   95-1678055
      STATE OF INCORPORATION                IRS Employer Identification No. 

                               9333 Balboa Avenue
                          San Diego, California 92123
                            Telephone (619) 277-6780
 
     Indicate by check mark whether the Registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months, and (2) has been subject to such filing 
requirements for the past 90 days.

                              YES  /X/       NO / /
                                   ---          ---

     As of May 1, 1998, Registrant had only one class of common stock of 
which there were 8,907,158 shares outstanding (after deducting 2,981,085 
shares held as treasury stock).
 
                                       
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                         PART I--FINANCIAL INFORMATION
                          ITEM 1--FINANCIAL STATEMENTS

                               CUBIC CORPORATION
             CONSOLIDATED CONDENSED STATEMENT OF INCOME (UNAUDITED)

                 (amounts in thousands, except per share data)
 
<TABLE>
<CAPTION>
                                                             Six Months Ended      Three Months Ended   
                                                                 March 31               March 31        
                                                          ----------------------  --------------------  
<S>                                                       <C>         <C>         <C>        <C>        
                                                             1998        1997       1998       1997     
                                                          ----------  ----------  ---------  ---------  
Revenues:
Net sales...............................................  $  181,577  $  180,245  $  89,825  $  96,187  
Other income............................................       2,528       2,994      1,134      1,820  
                                                          ----------  ----------  ---------  ---------  
                                                             184,105     183,239     90,959     98,007  
Costs and expenses:
Cost of sales...........................................     145,700     138,566     76,895     74,997  
Selling, general and administrative expenses............      37,402      30,923     19,408     16,380  
Research and development................................       4,293       4,172      2,591      2,016  
Interest................................................         982         858        479        439  
                                                          ----------  ----------  ---------  ---------  
                                                             188,377     174,519     99,373     93,832  
                                                          ----------  ----------  ---------  ---------  
Income (loss) before income taxes.......................      (4,272)      8,720     (8,414)     4,175  
Income taxes (benefit)..................................      (1,250)      3,150     (2,750)     1,500  
                                                          ----------  ----------  ---------  ---------  
Net income (loss).......................................  $   (3,022) $    5,570  $  (5,664) $   2,675  
                                                          ----------  ----------  ---------  ---------  
                                                          ----------  ----------  ---------  ---------  
Net income (loss) per common share......................  $    (0.34) $     0.62  $   (0.64) $    0.30  
                                                          ----------  ----------  ---------  ---------  
                                                          ----------  ----------  ---------  ---------  
Dividends per common share..............................  $     0.19  $     0.19  $    0.19  $    0.19  
                                                          ----------  ----------  ---------  ---------  
                                                          ----------  ----------  ---------  ---------  
Average shares of common stock outstanding..............       8,927       8,981      8,910      8,981  
                                                          ----------  ----------  ---------  ---------  
                                                          ----------  ----------  ---------  ---------  
</TABLE>

See accompanying notes to financial statements.
 
                                       2

<PAGE>
                      CONSOLIDATED CONDENSED BALANCE SHEET
 
                            (thousands of dollars)
 
<TABLE>
<CAPTION>

                                                                  March 31        September 30  
                                                                    1998             1997
                                                                 (Unaudited)     (See note below)
                                                                 -----------     ----------------
<S>                                                              <C>          <C>
ASSETS

Current assets:
Cash and cash equivalents......................................   $  35,653     $    53,257
Marketable securities, available-for-sale......................       2,392           2,426
Accounts receivable............................................     108,843         107,807
Inventories--Note C............................................      36,486          20,955
Deferred income taxes and other current assets.................      16,956          15,783
                                                                 -----------  ---------------
Total current assets...........................................     200,330         200,228

Property, plant and equipment--net.............................      39,840          40,110
Cost in excess of net tangible assets of purchased businesses,
  less amortization............................................      26,213          27,281
Miscellaneous other assets.....................................      14,493          14,663
                                                                 -----------  ---------------
                                                                  $ 280,876     $   282,282
                                                                 -----------  ---------------
                                                                 -----------  ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Short-term borrowings..........................................   $   7,173     $     9,620
Accounts payable and other current liabilities.................      47,575          46,270
Customer advances..............................................      34,423          30,896
Income taxes payable...........................................       1,845             206
Current portion of long-term debt..............................       5,000           5,000
                                                                 -----------  ---------------
Total current liabilities......................................      96,016          91,992

Long-term debt.................................................      10,000          10,000
Deferred income taxes and other................................       5,294           4,970

Shareholders' equity:
Common stock...................................................         234             234
Additional paid-in capital.....................................      12,123          12,123
Retained earnings..............................................     193,499         198,213
Foreign currency translation adjustment........................        (238)           (557)
Treasury stock at cost.........................................     (36,052)        (34,693)
                                                                 -----------  ---------------
                                                                    169,566         175,320
                                                                 -----------  ---------------
                                                                  $ 280,876     $   282,282
                                                                 -----------  ---------------
                                                                 -----------  ---------------
</TABLE>
 
Note: The balance sheet at September 30, 1997 has been derived from the audited 
financial statements at that date.
 
See accompanying notes to financial statements.
 
                                       3
<PAGE>

                               CUBIC CORPORATION
           CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
  
                            (thousands of dollars)
 
<TABLE>
<CAPTION>
                                                                             Six Months Ended
                                                                                 March 31
                                                                           --------------------
<S>                                                                        <C>        <C>
                                                                             1998       1997
                                                                           ---------  ---------
Operating Activities:
  Net income (loss)......................................................  $  (3,022) $   5,570
  Adjustments to reconcile net income (loss) to net cash used in 
    operating activities:
      Depreciation and amortization......................................      4,891      4,000
      Changes in operating assets and liabilities........................     (9,401)   (32,454)
                                                                           ---------  ---------
      NET CASH USED IN OPERATING ACTIVITIES..............................     (7,532)   (22,884)
                                                                           ---------  ---------
Investing Activities:
  Sales of marketable securities.........................................         34         41
  Proceeds from sale of U. S. Elevator Corp..............................     --         31,996
  Net additions to property, plant and equipment.........................     (3,514)    (3,273)
  Other items--net.......................................................       (703)       443
                                                                           ---------  ---------
      NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES................     (4,183)    29,207
                                                                           ---------  ---------
Financing Activities:
  Change in short-term borrowings........................................     (2,733)    --
  Purchases of treasury stock............................................     (1,359)    --
  Dividends paid.........................................................     (1,692)    (1,706)
                                                                           ---------  ---------
      NET CASH USED IN FINANCING ACTIVITIES..............................     (5,784)    (1,706)
                                                                           ---------  ---------
Effect of exchange rates on cash.........................................       (105)      (241)
                                                                           ---------  ---------
      NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS...............    (17,604)     4,376
Cash and cash equivalents at the beginning of the period.................     53,257     20,062
                                                                           ---------  ---------
      CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD.................  $  35,653  $  24,438
                                                                           ---------  ---------
                                                                           ---------  ---------
</TABLE>
 
    See accompanying notes to financial statements.

                                       4
<PAGE>
 
                               CUBIC CORPORATION
 
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 
                                  (UNAUDITED)
 
                                March 31, 1998
 
A.   Basis for Presentation
 
     The accompanying unaudited consolidated condensed financial statements 
     have been prepared in accordance with generally accepted accounting 
     principles for interim financial information and with the instructions 
     to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not 
     include all information and footnotes required by generally accepted 
     accounting principles for complete financial statements.
 
     In the opinion of management, all adjustments (consisting of normal 
     recurring accruals) considered necessary for a fair presentation have 
     been included. Operating results for the quarter are not necessarily 
     indicative of the results that may be expected for the year ended 
     September 30, 1998. For further information, refer to the consolidated 
     financial statements and footnotes thereto included in the Company's 
     annual report on Form 10-K for the year ended September 30, 1997.
 
     The preparation of the financial statements in conformity with generally 
     accepted accounting principles requires management to make estimates and 
     assumptions that affect the reported amounts of assets and liabilities, 
     the disclosure of contingent assets and liabilities at the date of the 
     financial statements, and the reported amounts of revenues and expenses 
     during the reporting period. Actual results could differ from those 
     estimates.
 
     Certain prior period amounts have been restated to reflect the current 
     period classifications.
 
B.   Per Share Amounts
 
     Per share amounts are based upon the weighted average number of shares 
     of common stock outstanding.

                                       5
<PAGE> 

                               CUBIC CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                            (UNAUDITED)--continued
 
                                 March 31, 1998
 
C.   Inventories
 
<TABLE>
<CAPTION>
                                                                           
                                                                       March 31    September 30
                                                                         1998          1997
--------------------------------------------------------------------  -----------  ------------
Inventories consist of the following:                                       (In thousands)
<S>                                                                   <C>          <C>
Finished products...................................................   $   2,084    $    2,501
Work in process.....................................................      25,505        10,300
Raw material and purchased parts....................................       8,897         8,154
                                                                      -----------  ------------
                                                                       $  36,486    $   20,955
                                                                      -----------  ------------
                                                                      -----------  ------------
</TABLE>
 
     Work in process at March 31, 1998 includes $8.4 million of inventoried 
     long-term contract costs incurred as a result of customer-required work 
     performed not specified in contract provisions. The recovery of this 
     entire amount was successfully negotiated in April 1998 and a contract 
     modification has been received. Work in process at March 31, 1998 also 
     includes $4.7 million of inventoried costs incurred as pre-contract work 
     performed at the Company's risk. Management believes the Company will 
     ultimately recover this and any future amounts to be incurred through 
     the award of the related contract.
 
D.   Legal Matter
 
     In July 1995, UDT Sensors, Inc. (UDT) a potential subcontractor, filed a 
     lawsuit against Cubic Defense Systems, Inc. (CDS) in the Superior Court 
     of the State of California in Los Angeles, alleging breach of a written 
     contract, unjust enrichment, fraud and deceit, among other related 
     charges. The claims allegedly arose out of a strategic supplier 
     agreement under which UDT alleged it was to receive a subcontract to 
     provide a certain product if CDS was selected by the United States Army 
     as the prime contractor for a certain government program. After winning 
     the prime contract, CDS was unable to reach agreement on certain terms and
     conditions for a subcontract with UDT.
 
     In April 1998, CDS reached a business settlement with UDT which provides 
     that, among other lesser items, CDS will purchase from UDT, a minimum 
     percentage of worldwide requirements for certain products at competitive 
     prices.
 
E.   Review by Independent Accountants
 
     A review of the data presented was made by Ernst & Young LLP, 
     independent accountants, in accordance with established professional 
     standards and procedures, and their report is included herein.

                                       6
<PAGE>
 
                               CUBIC CORPORATION
           ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS
 
                             March 31, 1998
 
RESULTS OF OPERATIONS
 
Sales for the six month period ended March 31, 1998 were essentially flat as 
compared to the same period of fiscal 1997. Sales increased in the 
transportation systems segment, primarily due to the acquisition of Thorn 
Transit Systems International (TTSI) in April 1997, however, this increase 
was offset by lower sales volume on transportation system contracts in the 
United States and a decrease in defense segment sales. Sales for the three 
month period ended March 31, 1998 decreased 7% primarily as the result of the 
delayed award of the MILES 2000 (Multiple Integrated Laser Engagement System) 
production contract. A contract modification for the exercise of production 
options on MILES 2000 has now been received.
 
During the second quarter, the Company established a $9.5 million reserve, 
before applicable income taxes, for estimated losses on several contracts in 
Asia, related to the TTSI subsidiary referred to above. Management believes 
the reserve is sufficient to cover all losses associated with the existing 
contracts of this subsidiary. In response to these losses, in April 1998, the 
Company commenced a restructuring of management in the United Kingdom to 
realign resources and address the operating issues which resulted in the 
losses.
 
Operating profits in the transportation systems segment were also negatively 
impacted by lower sales volume and profit margins on contracts in the United 
States. However, award of the Prestige contract to privatize the London 
Transport fare collection system is expected within the next few months, 
which should increase sales and operating profits of this segment in future 
quarters.
 
Operating profits in the defense segment for the six month period ended March 
31, 1998 were 86% higher than in the previous year. The J-STARS Data Link 
product line continued to contribute significantly to the operating profits 
of this segment. In addition, during the first half of fiscal 1997, operating 
profits in the segment had been lower due to the recognition of losses caused 
by cost growth in the development of MILES 2000. In the current year, the 
MILES 2000 product line has operated at a break-even status, helping to 
improve overall operating profits as compared to the previous year.
 
The Company has continued to invest in the development and promotion of its 
proprietary software technology which delivers compressed video and audio 
transmission over computer networks for applications including e-mail, 
intra-net based training and surveillance. This investment, which has 
resulted in losses in the commercial operations segment for both the three 
and six month periods, has amounted to approximately $1 million, before 
applicable income taxes, in each of the first two quarters of the fiscal year.
 
                                       7
<PAGE>

                               CUBIC CORPORATION
           ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                   CONDITION AND RESULTS OF OPERATIONS--CONTINUED
 
                               March 31, 1998
 
For the three and six month period ended March 31, 1998, selling, general and 
administrative expenses increased, both nominally and as a percentage of 
sales, over the level in fiscal 1997. This increase was in support of higher 
sales volume at the transportation systems segment, increased selling 
expenses incurred at the defense segment in pursuit of new contracts and 
selling expenses related to the video compression product mentioned above.
 
LIQUIDITY AND CAPITAL RESOURCES
 
Cash and cash equivalents decreased $17.6 million since year end, to $35.7 
million at March 31, 1998. During the six month period ended March 31, 1998, 
operating activities used $7.5 million, due primarily to growth in 
inventoried costs as described in note C. Investing activities included 
planned expenditures for capital equipment, which used $3.5 million. 
Financing activities included a $2.7 million repayment of short-term 
borrowings in the United Kingdom, and $3.1 million used to purchase treasury 
stock and pay cash dividends to shareholders. The Company expects that cash 
on hand and its available debt capacity will be adequate to meet its short 
and long term working capital requirements.
 
The Company's financial condition remains strong with working capital of 
$104.3 million and a current ratio of 2.1 to 1 at March 31, 1998. The backlog 
of orders at March 31, 1998 was $354 million, which is comparable to the $358 
million at September 30, 1997 and a slight increase from $343 million at 
March 31, 1997.
 
Except for historical matters contained herein, statements in this discussion 
and analysis are forward-looking and are made pursuant to the Securities 
Litigation Reform Act of 1995. Investors are cautioned that forward-looking 
statements involve risks and uncertainties which may affect the Company's 
business and prospects, including economic, competitive, governmental, 
technological and other factors.

                                       8
<PAGE>
 
                           PART II--OTHER INFORMATION
                    ITEM 6--EXHIBITS AND REPORTS ON FORM 8-K
 
    (a) The following exhibits are included herein: 
             15--Independent Accountants' Review Report 
             27-- Financial Data Schedule
 
    (b) No reports on Form 8-K were filed during the quarter.
 
                                   SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
 
                                                  CUBIC CORPORATION
 
    Date May 6, 1998                              /s/ W. W. Boyle
                                                  ----------------------------
                                                  W. W. Boyle
                                                  VICE PRESIDENT FINANCE AND CFO
 
    Date May 6, 1998                              /s/ T. A. Baz
                                                  ----------------------------
                                                  T. A. Baz
                                                  VICE PRESIDENT AND CONTROLLER

                                       9
<PAGE>
 
               EXHIBIT 15--INDEPENDENT ACCOUNTANTS' REVIEW REPORT
 
THE BOARD OF DIRECTORS
CUBIC CORPORATION
 
We have reviewed the accompanying consolidated condensed balance sheet of 
Cubic Corporation as of March 31, 1998, and the related consolidated 
condensed statement of income for the three and six-month periods ended March 
31, 1998 and 1997, and the consolidated condensed statement of cash flows for 
the six-month periods ended March 31, 1998 and 1997. These financial 
statements are the responsibility of the Company's management.
 
We conducted our reviews in accordance with standards established by the 
American Institute of Certified Public Accountants. A review of interim 
financial information consists principally of applying analytical procedures 
to financial data, and making inquiries of persons responsible for financial 
and accounting matters. It is substantially less in scope than an audit in 
accordance with generally accepted auditing standards, which will be 
performed for the full year with the objective of expressing an opinion 
regarding the financial statements taken as a whole. Accordingly, we do not 
express such an opinion.
 
Based on our reviews, we are not aware of any material modifications that 
should be made to the accompanying consolidated condensed financial 
statements referred to above for them to be in conformity with generally 
accepted accounting principles.
 
We have previously audited, in accordance with generally accepted auditing 
standards, the consolidated balance sheet of Cubic Corporation as of 
September 30, 1997, and the related consolidated statements of income, 
retained earnings, and cash flows for the year then ended (not presented 
herein) and in our report dated December 4, 1997, we expressed an unqualified 
opinion on those consolidated financial statements. In our opinion, the 
information set forth in the accompanying consolidated condensed balance 
sheet at September 30, 1997, is fairly stated in all material respects in 
relation to the consolidated balance sheet from which it has been derived.
 
                                              ERNST & YOUNG LLP
 
SAN DIEGO, CALIFORNIA
May 6, 1998
 
                                       10