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Terran Orbital wins $15.2 million Air Force satellite contract

Published 05/03/2024, 10:44 pm
© Reuters.
LLAP
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BOCA RATON, Fla. - Terran Orbital Corporation (NYSE: LLAP), a manufacturer specializing in satellite solutions, announced on Monday that it has secured a $15.2 million contract to supply the Air Force Research Laboratory (AFRL) with satellite platforms. The platforms will support United States Space Force missions, with delivery expected in the fourth quarter of 2024.

Under the contract managed by Axient Corporation, Terran Orbital will provide its Ambassador Class satellite platforms, which include solar arrays and support equipment. These platforms will have integrated payloads for specific missions and are based on the company's commercial off-the-shelf Ambassador platform, which is also being used for the Space Development Agency’s Tranche 1 Transport Layer satellites delivered by Lockheed Martin (NYSE:LMT).

Marc Bell, Co-Founder, Chairman, and Chief Executive Officer of Terran Orbital, emphasized the company's commitment to "Responsive Space" capabilities, stating that the space vehicles will be delivered off the production line in less than twelve months.

This rapid delivery is part of Terran Orbital's strategy to offer standard satellite platforms within 30 days and complete satellite systems with payloads within 60 days by the end of 2024. The company aims to achieve this through robotic assembly, modular architecture, and comprehensive vertical integration.

Terran Orbital, primarily serving the aerospace and defense industries, provides end-to-end satellite solutions, including design, production, launch planning, mission operations, and on-orbit support. The company caters to a range of military, civil, and commercial customers with demanding requirements.

This news is based on a press release statement from Terran Orbital.

InvestingPro Insights

In light of Terran Orbital Corporation's recent contract win, a glance at the company's financial health and stock performance offers additional context for investors. According to InvestingPro data, Terran Orbital has a market capitalization of $229.46 million USD. Despite the positive news, the company operates with a significant debt burden, which is a point of concern as it may have trouble making interest payments on its debt. This is particularly relevant as the company is quickly burning through cash, with a reported operating income of -$136.75 million USD over the last twelve months as of Q1 2023.

However, it's not all challenging news for the satellite solutions provider. Terran Orbital has experienced a noteworthy sales growth of 86.47% over the last twelve months as of Q1 2023. Additionally, the company's stock has had a significant return over the last week, with a 14.56% price total return, and an even more impressive 57.9% return over the last month. These figures suggest investor optimism, possibly buoyed by recent contract wins and anticipated sales growth in the current year.

Investors should note that while the company's stock price movements are quite volatile, which may be indicative of high risk, there is potential for growth as analysts anticipate sales to increase. For those seeking a deeper dive into Terran Orbital's financials and stock performance, the InvestingPro platform offers additional InvestingPro Tips, with 16 more tips available to help with investment decisions. For a more comprehensive analysis, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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