Space stocks had a rough first quarter as several companies struggled with supply chain disruptions

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  • Space companies reported first-quarter results for the year over the past several weeks — with several CEOs complaining of supply chain disruptions.
  • Several space companies went public last year through SPAC deals, but most stocks are struggling despite industry growth.
  • CNBC summarizes the most recent quarterly reports for Aerojet Rocketdyne, AST SpaceMobile, Astra, BlackSky, Iridium, Maxar, Momentus, Mynaric, Redwire, Rocket Lab, Satellogic, Spire Global, Telesat, Terran Orbital, ViaSat, Virgin Galactic and Virgin Orbit Gave.

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Space companies reported first-quarter results for the year over the past several weeks — with several CEOs complaining of supply chain disruptions and hardware delivery and launch schedules pushed back.

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“Everyone is procrastinating. I haven’t heard from a single satellite operator in the last 12 months—whether they’re a new entrant, whether they’re a longtime operator—to be moved to the right little by little like everyone else The same reason for most … supply chain issues and what not,” Telesat CEO Dan Goldberg said during his company’s earnings conference call.

Several space companies went public last year through SPAC deals, but most stocks are struggling despite industry growth. The changing market environment, high interest rates coupled with giving tough competition to technology and growth stocks have impacted the space stocks. Shares of about a dozen space companies have fallen 50% or more since their market debut.

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Beyond supply chain constraints, most public companies reported consistent quarterly losses, as profitability remains a year or more away for many space enterprises.

Below are summaries of the latest quarterly reports for Aerojet Rocketdyne, AST SpaceMobile, Astra, BlackSky, Iridium, Maxar, Momentus, Mynaric, Redwire, Rocket Lab, Satellogic, Spire Global, Telesat, Terran Orbital, ViaSat, Virgin Galactic and Virgin Orbit Huh. — with the stock’s year-over-year performance as of Thursday’s close.

Satellite imagery company Planet has yet to report its first quarter results. The company uses the 2023 fiscal year calendar which began on 1 February.

Aerojet Rocketdyne: -12%

While the propulsion specialist draws the majority of its $511 million in first-quarter sales from defense-related contracts, Aerojet continues to draw a substantial portion of revenue from the Rocketdyne space sector. The company’s adjusted EBITDA profit for the quarter increased 18% to $69 million compared to the same period a year ago, with a backlog of $6.4 billion in multi-year contracts. Aerojet Rocketdyne is embroiled in a board proxy battle between CEO Eileen Drake and executive chairman Warren Lichtenstein that began during the now-expired Lockheed Martin deal.

AST Spacemobile: -5%

The satellite-to-smartphone broadband company saw minimum revenue of $2.4 million in the first quarter, a slight increase in operating expenses of $32.7 million from the previous quarter. AST continues to work toward the launch of its Bluewalker 3 demonstration satellite this summer, with approximately $83 million invested in building and testing the spacecraft so far. The company has $255 million in cash.

Astra: -66%

Small rocket and spacecraft maker Astra reported an adjusted EBITDA loss of $47.5 million for the first quarter, up 32% from a year ago. Revenue came in at $3.9 million, and the company has $255 million in cash. Astra launched two missions with its Rocket 3 vehicles during the quarter—the company’s first from Cape Canaveral, Florida was poor and unsuccessful, but the second mission successfully delivered the spacecraft to orbit for three customers. Astra CEO Chris Kemp said during the quarterly call that the company’s spacecraft engine business is growing, with more than 60 engines sold to date. Astra aims to launch a trio of upcoming NASA missions at a “better than monthly rate.”

BlackSky: -46%

Seattle-based satellite imagery specialist BlackSky reported first-quarter revenue of $13.9 million with an adjusted EBITDA loss of $9.5 million, up 91% and 53%, respectively, from the same period a year ago. BlackSky has $138 million in cash. While CEO Brian O’Toole stressed that the company sees a growing demand for Earth imagery from both the US and foreign governments, BlackSky said it “believes the potential” from the existing 14 satellites that are in orbit will be “increased”. will be more than enough to support customer demand”.

Iridium: -11%

The satellite communications provider delivered revenue of $168.2 million, an operating EBITDA profit of $103.2 million, and 1.8 million total customers in the first quarter — 15%, 17% and 15%, respectively, from a year ago. Iridium CEO Matt Desch noted that the company’s supply chain team is managing the issues and “we think we’re doing what we can with anyone getting the parts we need,” but said “the problem is that demand continues to exceed forecast.” Iridium has “tremendous demand” from Ukraine, Desch said, with the company shipping thousands of devices to provide services like mobile phones for Internet-of-Things connectivity.

Max: 1%

The satellite imagery and space infrastructure company reported $405 million in first-quarter revenue, compared with an adjusted EBITDA profit of $84 million a year ago, an increase of 25%. Maxar’s order backlog fell 14% from the fourth quarter to $1.6 billion. CEO Dan Jablonski said during the company’s call that the long-awaited first Worldview Legion satellite launch is delayed to September because of a problem during testing. Jablonsky said he is “disappointed we have had another delay” with Maxar’s deadline to get its WorldView Legion satellites into orbit. It “has been affected by issues related to supply chain and COVID over the years.”

Moment: -31%

The spacecraft maker reported no revenue in the first quarter, and an adjusted EBITDA loss of $17.2 million — up from a loss of $13.2 million a year ago. Momentus spent the quarter preparing to launch its Vigoride spacecraft this month to demonstrate its capabilities, and signed agreements to fly it on future SpaceX rideshare launches. The company has $136 million in cash.

Manic: -33%

The laser communications maker announced preliminary results for 2021 in a shareholder letter the German company listed on Nasdaq late last year. Converted from euros, Mynaric brought in $2.6 million in revenue in 2021, and has approximately $50 million in cash. Mynaric’s customer backlog for 2022 has seen it receive approximately $21 million from contracts for laser communications units.

Radwire: -40%

Space Infrastructure Group reported revenue of $32.9 million for the first quarter, up slightly from a year ago, with a backlog of orders of $273.9 million. Redwire has approximately $6 million in cash, with approximately $31 million of available liquidity through existing debt.

Rocket Lab: -62%

The small-rocket builder reported $40.7 million in first-quarter revenue, up 147% from a year earlier — and $34 million of that revenue came from Rocket Lab’s spacecraft business, with the remainder from launch in the minority. Rocket Lab’s adjusted EBITDA loss was $8 million, down 8% from a year ago, and it has $603 million in cash. The company’s CFO Adam Spice said during the earnings call that its “supply chain remains relatively intact” due to vertical integration, but that buying production equipment for Rocket Lab’s upcoming Neutron vehicle is “suffering from supply chain issues” because ” There’s no amount in the “world that can speed up some of that stuff.”

Cateological: -51%

The satellite imagery company announced 2021 results earlier this month after going public in January. The satellite has 22 satellites in orbit, with plans to launch a dozen more this year. The company had $4.2 million in 2021 revenue, with an adjusted EBITDA loss of $30.7 million.

Peak Global: -56%

Small satellite maker and data specialist Spire reported first-quarter revenue of $18.1 million and an adjusted EBITDA loss of $9.7 million, up 86% and 62%, respectively, in the year-ago period. The company has $91.6 million in cash. Estimated full year 2022 revenue from annual recurring customer contracts of between $101 million and $105 million. Spire CEO Peter Platzer said during the quarterly call that the company aims to continue to be “cash flow positive in 22 to 28 months”, helping customers from the agriculture industry to the Formula 1 team with weather data, and its Helping Marine Data. Cargo industry during global supply chain challenges.

Telesat: -42%

The Canada-based satellite communications operator reported $186 million in first-quarter revenue, down 3% from a year ago. Telesat’s adjusted EBITDA profit was $146 million, down 4% from last year’s first quarter. The company has $1.5 billion in cash as it prepares to build the Lightspeed global satellite Internet network.

Terran Orbital: -50%

The spacecraft maker reported first-quarter revenue of $13.1 million, up 25% from a year ago, with a $222 million backlog — thanks to a contract to build satellites for the Pentagon’s space development agency. Terran Orbital saw an adjusted EBITDA loss of $14.7 million, quadruple its loss in first quarter 2021. It has $77 million in cash. Teran co-founder and CEO Mark Bell highlighted the supply chain disruptions on the call, but emphasized that the company is increasingly integrating its manufacturing.

Viasat: -18%

The satellite broadband provider is on a different reporting cycle than in the calendar year, the company reported on Wednesday for fourth-quarter results. Viasat brought in $702 million in fourth-quarter revenue, up 18% from the year-ago period, and adjusted EBITDA of $134 million, down 9%. The company has about $1 billion in liquidity, mainly through debt. In a letter to shareholders, Viasat noted the increase in R&D spending at the end of its fiscal year was “some challenges” as well as “attractive growth opportunities” due to regulatory delays.

Virgin Galactic: -50%

The space tourism company reported negligible revenue for the first quarter, and an adjusted EBITDA loss of $77 million — 38% higher than the same period a year ago. The company has $1.22 billion in cash. Although its current spacecraft and carrier aircraft refurbishment program is “progressing well” and is expected to end in September, Virgin Galactic announced a delay in launching its commercial tourism service to the first quarter of 2023. Virgin Galactic CEO Michael Colaglier said the delay in commercial service was due to “small issues” that pushed back the company’s renewal schedule. “Like many companies around the world, we are experiencing high levels of supply chain disruption,” he added.

Virgin Class: -40%

Alternative Rocket Launcher reported first-quarter revenue of $2.1 million, down 61% from the same period a year ago, and an adjusted EBITDA loss of $49.6 million, up 71%. Virgin Orbit said the reduction in revenue was due to “contracted launches during the initial development phase with low pricing”. The company has $127 million in cash, with a total contract backlog of $575.6 million. CEO Dan Hart said during the company’s conference call that it still plans to launch four to six times this year, with one completed so far.

Credit: www.cnbc.com /

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