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The Space Scoop

Week Ended 01.31.2024

Happy Friday! One [crazy] month of 2025 down, eleven more to go. Lets dive in.

Market Max-Q

Top Stories

1) The Q4 / FY 2024 earnings season has kicked off with Primes reporting this week. Some key takeaways are below:

• Boeing ($BA) suffered a $(5.4) billion net loss across its Defense, Space & Security program last year, and an $(11.8) billion loss overall as a company. CEO Kelly Ortberg told CNBC he expects a "few" M&A sales this year, with potential deals in "advanced stages." Shares finished the day +2% higher.

• Lockheed Martin's ($LMT) Space segment saw -13% YoY topline change to $12.5 billion, which it attributed to lower volume on national security space program Next Gen OPIR and classified programs, and the Orion program. Total equity earnings of ULA were $45 million. Shares fell -9% on the day.

• RTX ($RTX) Collins Aerospace segment reported $4.1 billion in operating profit for the year but -2% versus prior Q4 associated with a $155 million charge related to the impairment of contract fulfillment costs, which was partially offset by a $99 million gain on the sale of the Hoist & Winch business. Shares rallied +3%.

• Northrop Grumman ($NOC) Space Systems sales and operating income finished the year -1%, which was driven primarily by the wind-down of work on the restricted space and NGI programs. Shares traded +1% higher on the release.

• General Dynamics ($GD) Aerospace segment saw a +30% increase in revenue and +24% in operating income for 2024. Backlog at the end of the year was $19.7 billion and book-to-bill was 1-to-1 for the quarter and the year. Shares fell -4%.

2) Apple's ($AAPL) iPhone to now support Starlink direct-to-cell coverage in U.S.

• The Company's 18.3 iOS update brings support for the network in its latest move for compatibility to Starlink satellite access. The partnership comes as a bit of surprise given Apple’s recent $1.7B investment of Globalstar ($GSAT) for D2D services.

• “Apple has been secretly working with SpaceX and T-Mobile ($TMUS) to add support for the Starlink network in its latest iPhone software, providing an alternative to the company’s in-house satellite-communication service,” according to Bloomberg.

• While T-Mobile already had a Starlink satellite option for users to send emergency messages when outside cellular range, it was solely for Samsung phones. The key difference here is there is no more need to point one's phone at the sky as Starlink will work right from your pocket.

• Apple and T-Mobile shares finished the week +6% and +7%, respectively, while Globalstar shares fell -23%.

In Other News

Castelion Raises $100M Series A Round 

(BW)

The long range hypersonic strike weapon startup raised the capital in a mix of $30M venture debt from Silicon Valley Bank and equity financing led by Lightspeed Venture Partners. a16z, Lavrock Ventures, Cantos, First In, BlueYard Capital and Interlagos also participated in the round. The funding will be used to continue flight test campaign and scaling manufacturing infrastructure.

AscendArc Raises $4M in Funding 

(Payload)

The startup developing small GEO communication satellites founded by ex-Starlink engineer Chris McLain emerged from stealth this week. The company raised $0.5M in a pre-seed round and $3.45M in seed funding. Investors include Seraphim Space ($SSIT), Everywhere Ventures, Portland Seed Fund, Thermo and Hunter Communications.

Chart of the Week

January Performance: Planet ($PL), Redwire ($RDW) and BlackSky ($RDW) are off to a hot start in 2025, up +51%, +45% and +39% respectively. While Mynaric ($MYNA) and Sidus ($SIDU) are off on the wrong foot [and continuing 2024 trends] down -41% and -49%.

Links

• AST SpaceMobile ($ASTS) Announces Closing of $460M Private Offering of Convertible Senior Notes Due 2032• Sidus ($SIDU) Receives FCC Approval for Direct-to-Device Transmit & Receive Capability for LizzieSat• BlackSky ($BKSY) Wins $100M+ Contract From Strategic International Defense Sector Customer for Gen-3 Monitoring Capabilities• Scandinavian Airlines Plans To Roll Out Starlink Across Its “Entire Fleet” by End of 2025• Intuitive Machines ($LUNR) Delivers IM-2 Mission Lander to Cape Canaveral for February SpaceX Launch• Momentus’s ($MNTS) Chief Legal Officer Announces Departure To Join Trump Administration• Planet ($PL) Signs Multi-Year Contract With European Space Agency• Planet ($PL) Signs Multi-Year $230M Commercial Agreement for Pelican Satellites With Asia-Pacific Partner• Virgin Galactic ($SPCE) Partners With Redwire ($RDW) To Advance Research Capabilities on New Delta Spaceships• AST SpaceMobile ($ASTS) Announces FCC Grant of Special Temporary Authority in the U.S. with AT&T ($T) and Verizon ($VZ)

Opinion

• What the Trump Administration Could Mean for Primes• Estimating SpaceX’s 2024 Revenue• Spire ($SPIR): Maritime Sale Reduces Risk• Rocket Lab ($RKLB): With a Rosy Outlook Ahead, Wait for Discount To Buy• AST SpaceMobile ($ASTS): What To Do After Shares Dip

Earnings Calendar

• $HON: Feb 6 - Before Market Open• $VSAT: Feb 6 - After Market Close• $IRDM: Feb 13 - Before Market Open• $RKLB: Feb 27 - After Market Close

*Company confirmed dates only.