Updated Aug 6 at 2:02pm ET.
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The company finished selling a majority stake in several commercial space units to AE Industrial Partners, a deal valued at $845 million. It will keep a 40 percent stake in these businesses while holding onto its core RS-25 rocket engine operations.
This is a move to sharpen the company's focus on its most important military and national security work. Management plans to use the cash from this sale to upgrade its factories and develop the advanced technology needed to handle a record-high backlog of orders.
Source: Business Wire
The company picked Intuitive Machines to design and build spacecraft platforms for a new missile defense mission. This project supports the Space Development Agency, a government group focused on getting new space technology into orbit faster. This shows the company is acting as a lead contractor, managing smaller partners to deliver complex systems. It is a small but practical step in fulfilling the large satellite contracts the company has won recently.
Source: GlobeNewsWire
The company reported a strong quarter with $5.9 billion in revenue, up 8 percent from last year. It earned $3.13 per share, which was better than the $2.80 analysts expected. More importantly, the company brought in $7.3 billion in new orders, pushing its total backlog of signed work to a record $42 billion.
This record backlog is the most critical number for the business. It shows that demand for its radios and rocket engines is high, but the challenge now is turning those orders into actual sales by ramping up manufacturing. Because of the strong results, management raised its profit and revenue goals for the rest of the year.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
The company signed a long-term agreement with Lockheed Martin and the Department of War to speed up production of the PAC-3 MSE missile. This missile is a key part of modern air defense, and the deal uses special government authority to lock in multi-year orders.
This is a direct win for the company's rocket-motor business, which it recently expanded. By securing a long-term commitment, the company can invest in its factories with more certainty that the demand for these missile parts will last for years.
Source: Business Wire
The company reached a deal to quadruple its production of rocket engines for the THAAD system, a high-altitude missile defense platform. This agreement was made with Lockheed Martin and the Department of War to help the U.S. build up its supply of critical munitions faster.
This massive increase in production capacity shows that the company's acquisition of Aerojet Rocketdyne is paying off. It is now a primary supplier for the most important defense programs in the country, which provides a steady and growing stream of work.
Source: Business Wire
Analysts have maintained a steady stream of positive ratings following the company's strong second-quarter earnings report and recent defense contract wins. Most analysts, 24 of 33, rate the stock a buy, though the average target of $273 is 6% below today's price.
Management has a perfect two-year streak of clearing its own profit targets, usually by a wide margin. This suggests they have a very firm handle on their costs and manufacturing pace.
| Expectation | |
|---|---|
| EPS | $2.99 |
| Revenue | $6.00B |
GlobeNewsWire · Press release · Aug 4
Business Wire · Press release · Aug 4
Business Wire · Press release · Jul 29
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