Shares of Intuitive Machines surged 24% on Monday following a significant increase in fourth-quarter revenue, driven by higher contract values and a stronger cash position.
The company secured additional contracts for direct-to-earth services, enabling it to leverage a contract with a maximum potential value of $4.8 billion. These services provide communication and navigation for spacecraft, such as lunar landers and orbiters, linking them to Earth's ground stations to support NASA's Artemis program and broader lunar exploration.
Andres Sheppard, senior equity analyst at Cantor Fitzgerald, noted that Intuitive Machines' primary revenue source is derived not from launch missions but from its space contracts.
One notable contract is the Omnibus Multidiscipline Engineering Services contract, which has a maximum order value of $719 million. This agreement empowers the company to design, develop, test, operate, and create new technologies for future space and science missions. Additionally, the near space network contract with NASA, valued at $4.82 billion, will facilitate the delivery of communication and navigation services.
A key indicator of demand, backlog, increased by $59.8 million to $328.3 million. The company attributed this growth primarily to awards from contracts with NASA and adjustments to task orders for other agreements.
Josh Sullivan, an analyst at Benchmark Company, remarked that the recent earnings report revealed a substantial cash position for Intuitive Machines, along with robust backlogs and additional upcoming missions.
The company reported fourth-quarter revenue of $54.6 million, up from $30.7 million a year earlier. Intuitive Machines also reported a cash balance of $385 million as of March 10, an increase from $207.6 million at the end of the previous year.
Despite this positive outlook, shares of Intuitive Machines have declined 61% this year, mainly due to complications surrounding its second moon landing. Earlier this month, the Athena lander landed on its side after experiencing issues with its laser rangefinders, a problem reminiscent of its first moon landing.