🚀 Bezos' Space Base

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The Space Scoop

Week Ending 10.29.2021

Happy Friday and a warm welcome to our new readers!

It was a big week of third quarter earnings from Legacy Space names $LMT, $RTX, $BA, $GRMN, $AJRD, $EADSY and $LHX. Jeff Bezos dominated the news cycle early in the week regarding his plans for a new space station with Sierra Space. We also have a freshly announced Space SPAC, Terran Orbital, coming in 2022. Godspeed.

Market Max-Q 📈

Indices:SPY +1.4% | QQQ +3.2%UFO -2.4% | ROKT -2.4%ARKX -0.4% | SSIT +3.1%This Week's Movers:ARQQ +31.9% | ASTS +9.4%RKLB +8.1% | BKSY +4.1%RDW -2.3% | SPCE -4.6%

Top Stories 🚀 

Blue Origin Partnering with Sierra Space To Build Commercial Space Station

The commercially developed, owned, and operated space station will be built in LEO and named Orbital Reef. The station will "open the next chapter of human space exploration and development by facilitating the growth of a vibrant ecosystem and business model for the future." Orbital Reef will offer "research, industrial, international and commercial customers the cost competitive end-to-end services including space transportation and logistics, space habitation, equipment accommodation and operations including onboard crew." The space station expects to be operational between 2025 and 2030, and is partnering with Boeing ($BA), Redwire ($RDW), Genesis Engineering Solutions and Arizona State University. The companies declined to specify exactly how much each expects to invest into Orbital Reef. Redwire rose +40% on the news intraday, including a halt from the NYSE, but finished the day +8.1%. Boeing had a calmer day, finishing lower by -0.1%.

Amazon's Project Kuiper To Partner With Verizon For Rural Connectivity

The strategic collaboration between the two aims to pair $VZ's terrestrial mobile network with $AMZN's LEO satellite network called Project Kuiper. The project is Bezos' $10B initiative to increase global broadband access through 3,236 satellites in low earth orbit. The network will deliver "cellular backhaul solutions to extend Verizon’s 4G LTE and 5G data networks," connecting both rural and remote communities in the US. Connectivity solutions will focus across agriculture, energy, manufacturing, education, emergency response, transportation and other industries. Verizon Chairman and CEO Hans Vestberg said, “Project Kuiper offers flexibility and unique capabilities for a LEO satellite system, and we’re excited about the prospect of adding a complementary connectivity layer to our existing partnership." Amazon and Verizon stock finished up +1.7% and +1.0%, respectively.

Redwire and BigBear.ai To Develop Space Cyber Range Capabilities

The two have signed an MOU to demonstrate the "use of simulation, emulation and hardware in the loop to establish a realistic test environment in which to evaluate space-based cyber-physical systems for the SpaceCREST initiative." SpaceCREST will leverage $RDW's digital engineering ecosystem, including its Hyperion Operational Space Simulation (HOSS) Lab and Advanced Configurable Open-system Research Network (ACORN) capabilities, to establish a platform that will evaluate the cybersecurity strength of space-based systems. BigBear.ai will use both HOSS and ACORN to develop tools and technologies to perform vulnerability research on space infrastructure hardware components, identify potential vulnerabilities, and provide tools and techniques to mitigate and protect against potential vulnerabilities identified. Brian Frutchey, CTO of BigBear.ai, stated “The Federal Government and DoD considers the cyber resiliency of space assets to be a top priority, and we are excited to leverage our capabilities to contribute.” Redwire shares finished -3.9% lower on the news.

Terran Orbital To Go Public via SPAC Merger

On Thursday after market close, Tailwind Two Acquisition Corp ($TWNT) announced it signed a definitive agreement with small satellite producer Terran Orbital to take the company public at $1.58B valuation. Terran designs and builds satellites for customers including NASA, the US Defense Department and EchoStar ($SATS). The transaction will give Terran access to $345M cash-in-trust, a $50M PIPE from AE Industrial Partners, Beach Point Capital, Daniel Staton and Lockheed Martin ($LMT), and $75M of additional financial commitments from Francisco Partners and Beach Point Capital. The transaction is expected to close in Q1'22 and upon closing, the combined company plans to list on the NYSE under the ticker symbol $LLAP. CEO Marc Bell was on CNBC to discuss the deal. Last month, Terran announced a $300M investment to construct "the world's largest, state-of-the-art, commercial spacecraft facility" on the Floridian Space Coast. The stock jumped during Thursday afternoon trading and closed the day +1.9%.

Legacy Space Reports Q3'21 Earnings

Earnings season is in full swing across the market and this week it was Legacy Space companies time to shine, with Lockheed Martin, Raytheon, Aerojet Rocketdyne, Boeing, Garmin, Northrop Grumman, Airbus and L3 Harris all reporting. Shine may not be the best word as everyone besides Garmin and Northrop Grumman posted in-line or lower financials. Looking to the markets, everyone besides Airbus and L3 Harris closed their trading days lower. Lockheed Martin fell the most -11.8%, with Garmin and Northrop Grumman also falling -8.8% and -7.6%, respectively.

Highlights include:• $LMT: Space Net Sales decreased -5% to $147M compared to the prior period. Total Equity Earnings, primarily related to ULA, recognized in Space Operating Profit "were not significant" during Q3'21 and Q3'20• $RTX: Intelligence & Space Segment Adjusted Sales were $3,740M, or in-line versus the prior year. Adjusted Operating Profit was $391M, +12% higher and primarily attributable to productivity across various programs• $BA: Defense, Space & Security Segment Revenue fell to $6.6B with an Operating Margin of 6.6%, primarily due to "a $185M earnings charge on the Commercial Crew program driven by the second uncrewed Orbital Flight Test now anticipated in 2022 and the latest assessment of work"• $GRMN: Aviation Segment accounted for 15% of Net Sales and grew +19% YoY• $NOC: Sales increased +22% to $2,681M compared to the prior period, due to higher sales in both the Launch & Strategic Missiles and Space business areas. Space Sales were driven by higher volume on restricted programs• $LHX: Space & Airborne Segment Revenue increased +3% versus prior year driven by Space, including a ramp on missile defense and other responsive programs. The Space segment received "key classified responsive and exquisite awards" totaling more than $225M, and potentially leading to multi billion dollar follow-on opportunities

In Other News 🛰️ 

ABL Space Systems Raises $200M 

(PR Newswire)

The capital is an expansion of a previous Series B round, which now brings the company's valuation to $2.4B. The round was led by the existing investor syndicate with plans to scale production of its RS1 rockets and “conduct research and development of future systems.”

Airbus Ventures Invests in ispace’s Series C Extension

(Company)

This follows the company's initial $46M Series C investment announced in August, which was led by Incubate Fund. The capital is expected to be applied toward ispace’s second and third lunar mission. The amount was not disclosed.

Hedron Raises $17.8M Series A

(SpaceNews)

ICYMI Hedron is the company formerly known as Analytical Space. With this capital, Hedron intends to roll out an orbital plane of “the world’s first hybrid optical/RF data relay network.” The round was led by Fine Structure Venture, with participation by Lockheed Martin Ventures, Republic Labs, Lime Street, Explorer 1 and existing investors.

0-G Launch and CACC Partner on Zero Gravity Services 

(PR Newswire)

Canary Islands Aeronautic and Aerospace Cluster (CACC) is dedicated to promoting aeronautical-aerospace companies in the archipelago. This agreement will facilitate yearly, consumer zero-gravity parabolic flights and future orbital rocket air launches of satellites. You can currently invest in 0-G Launch on NetCapital.

White Diamond Research Is Skeptical of Momentus

(Report)

Research firm White Diamond announced their short idea on $MNTS. Their thesis revolves around the companies Microwave Electrothermal Thruster technology, which 1) has yet be proven (despite promoting it as "mature"), 2) failure of the company's first and only test mission and 3) the lack of plans to fully develop said technology anytime in the near future, following all 2021 launches being cancelled. The firm also believes their immediate SEC settlement payment admits guilt. Which side are you on?

Dhruva Space Raises $2.9M

(IndiaTimes)

The startup focuses on building full-stack space engineering solutions and plans to expand its operations globally with their new capital. The round was led by Blue Ashva Capital and Indian Angel Network. 

Quick Links 🔗

Starlink Is Considering a Tie-Up With Vodafone To Expand Its U.K. Satellite Broadband ServiceFirefly Aeropace Successfully Completes NASA’s Critical Design Review of Blue Ghost Lunar LanderIsar Aerospace and EnduroSat Sign Launch AgreementSatellogic ($CFV) Signs Agreement with Space Agency of Paraguay To Provide Dedicated Satellite ConstellationexactEarth Announces $1.2M Satellite-AIS Contract with Geospatial IntelligenceAstroscale and MDA (TSX:$MDA) Are Partnering With the UK Government To Remove Multiple Retired Satellites in a Single MissionThe Case for Asset Based Financing for the Space SectorSpire ($SPIR) Appoints Theresa Condor To Chief Operating OfficerAAC Clyde Space (OTC:$ACCMF), ORBCOMM ($ORBC) and Saab (STO:$SAAB) Enter MOU To Develop Maritime Communication ServicesFour Trends Elevating The Commercial Space IndustrySpire ($SPIR): The Space Stock That Didn't Get The MemoD-Orbit Signs MOU With ETCO To Set Up a Satellite Manufacturing and Space Logistics FacilityPrivateer Hires Chief Scientific AdviserPromus Ventures Closes $139M Space FundOneWeb and Saudi Arabia Create $200M Connectivity JVTwitter’s ($TWTR) Vijaya Gadde Will Join Planet’s ($DMYQ) Board of DirectorsMomentus ($MNTS): The Space Stock Most Worthy of a Sell

Earnings Calendar 📅

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$SPCE: November 8th - After Market Close

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$GILT: November 9th - Before Market Open

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$MNTS: November 9th - After Market Close

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$SPIR: November 10th - After Market Close

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$ASTR: November 11th - After Market Close

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$RKLB: November 15th - After Market Close

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$ACCMF: November 25th - Not Disclosed

*Includes company confirmed dates only.

Chart of the Week 📊