Intuitive Machines, Inc. (LUNR) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary presents a positive outlook with strong revenue growth expectations, significant backlog, and strategic investments in space network expansion. The Q&A section reveals management's confidence in their capabilities, despite some lack of clarity on financial specifics. The acquisition of Goonhilly enhances their competitive position. While there are uncertainties, the overall strategic direction and expected growth in key areas suggest a positive sentiment, likely leading to a stock price increase.
Key Financial Performance
Revenue Record revenue of $186.7 million in Q1 2026, approximately 3x the first quarter of 2025. Growth driven by execution across satellite manufacturing, CLPS missions, OMES, and NSNS programs.
Gross Profit Increased to $30.1 million in Q1 2026, up significantly from $6.7 million in the prior year. Improvement driven by growing contribution from satellite business and expansion of higher-margin service revenues, including NSNS.
Adjusted EBITDA Positive $2.7 million in Q1 2026 compared to negative $6.6 million last year. Improvement driven by higher margin contribution from Lanteris, partially offset by growth investments.
Backlog Record backlog of $1.1 billion, supported by more than $400 million in new bookings in Q1 2026. Backlog reflects increasing demand across civil and national security markets.
SG&A Expenses $50.7 million in Q1 2026, includes $20 million of acquisition-related transaction and integration costs and $6.3 million for share-based compensation tied to the Lanteris acquisition.
Operating Loss $39.2 million in Q1 2026, versus a loss of $10.1 million in Q1 2025. Driven by acquisition-related transaction and integration costs, amortization, and investments in next-generation satellite capabilities.
Research and Development $5.6 million in Q1 2026. Investments focused on expanding software-defined satellite architecture, increasing addressable market opportunities in GEO and cislunar communications, and supporting future high-margin infrastructure services.
Operating Cash Used $54.8 million in Q1 2026. Includes $20 million of onetime acquisition transaction and integration costs, $5.6 million in R&D investments, and $2 million in additional inventory prebuy at Lanteris.
Capital Expenditures $9.9 million in Q1 2026, primarily for NSNS satellite constellation. CapEx expected to grow as the company invests in satellite constellation and ground segment.
Free Cash Flow Negative $64.6 million in Q1 2026, includes significant onetime costs. Expected to normalize throughout the year as onetime acquisition-related costs are completed and new awards come in.
Cash Position Ended Q1 2026 with $232 million in cash, following the Lanteris acquisition and $175 million capital raise earlier in the year.
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Operating Highlights
Nova-C Lunar Lander: Turned into a production line infrastructure platform with a known supply chain, reduced nonrecurring costs, and greater schedule reliability. IM-3 entered vertical assembly for a mission later this year, and engine testing for IM-4 and IM-5 was completed.
Lunar Data Relay Satellite: First satellite, Altus-1, expected to launch with IM-3. Structural design completed, moving into manufacturing and integration of flight hardware.
Lunar Terrain Vehicle (LTV): Designed for crude and uncrewed mobility systems with speed, survivability, and autonomous operations. Expected award decisions for LTVs in the coming weeks.
Gateway's Power and Propulsion Element: Repurposed for the U.S. flagship mission to Mars, SR-1 Freedom nuclear electric propulsion element, to deliver the Skyfall payload to Mars.
Acquisition of Lanteris: Expanded production base, strengthened near-term revenue foundation, and added capabilities in geostationary orbit, commercial communications, and national security.
Acquisition of Goonhilly Earth Station: Expanded global ground spacing capacity across the UK and US, adding deep space qualified assets and strengthening space-to-ground network capabilities.
Revenue Mix: Diversified revenue mix: 35% commercial, 38% civil, and 27% national security space.
Record Revenue and Backlog: Achieved record revenue of $187 million and a record backlog of $1.1 billion, supported by $400 million in new bookings.
Operational Efficiency: Positive adjusted EBITDA of $2.7 million, driven by higher-margin contributions and operational improvements.
NASA's Ignition Framework: Validated strategy to build integrated lunar infrastructure and services, including delivery, navigation, mobility, and communications.
Focus on Recurring Revenue: Transitioning from individual missions to persistent services, aiming for deeper customer relationships and repeatable operational revenue.
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Risk or Challenges
Acquisition Integration Costs: The company incurred $20 million in acquisition-related transaction and integration costs, which are nonrecurring but impacted the financials for the quarter.
Supply Chain Discipline: The company emphasized the importance of supply chain discipline to meet NASA's ignition initiative and maintain delivery cadence, which is critical for repeatable lunar infrastructure.
Regulatory Approvals: The acquisition of Goonhilly Earth Space Unlimited is subject to customary closing conditions, including regulatory approvals, which could delay or impact the acquisition.
Cash Flow Challenges: The company experienced negative free cash flow of $64.6 million in Q1, driven by acquisition costs, R&D investments, and inventory prebuy, which could strain financial resources.
Operational Costs: SG&A expenses were $50.7 million, including $20 million in acquisition-related costs and $6.3 million in share-based compensation, which are expected to normalize but currently impact profitability.
Economic Uncertainty: The company highlighted the potential for economic uncertainties to impact forward-looking statements and actual results.
Dependence on NASA Contracts: A significant portion of the company's revenue and strategy is tied to NASA's ignition initiative and related contracts, making it vulnerable to changes in NASA's funding or priorities.
Infrastructure Scalability: The scalability of lunar landers and infrastructure is critical for future contracts, but any delays or inefficiencies could impact the company's ability to meet NASA's CLPS 2.0 requirements.
Award Decisions and Timing: The company is awaiting several large multiyear NASA and national security program awards, and delays in these decisions could impact revenue and backlog growth.
Investment Risks: Significant investments in satellite production and lunar infrastructure are required, which could pose risks if expected contracts or revenue do not materialize.
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Guidance & Outlook
Revenue Outlook: The company maintains its revenue outlook range between $900 million to $1 billion for 2026, with a significant portion already supported by contract backlog.
Adjusted EBITDA: The company expects positive adjusted EBITDA for the full year 2026, reflecting improving profitability.
Backlog Growth: The company anticipates additional backlog growth from several large multiyear NASA and national security programs, including Golden Dome initiatives, NASA's lunar terrain vehicle, additional CLPS missions, and other NASA Project Ignition moon infrastructure programs.
Lunar Infrastructure Development: NASA's Ignition framework validates the company's strategy to build integrated lunar infrastructure and services, including delivery, navigation, mobility, and communications systems for sustained lunar operations.
Lunar Terrain Vehicle (LTV) Awards: The company expects award decisions for crude and uncrewed Lunar Terrain Vehicles (LTVs) in the coming weeks, aligning with NASA's revised procurement strategy for sustained surface operations.
CLPS 2.0 IDIQ Contract: A $6 billion CLPS 2.0 IDIQ contract has been added to support heavier cargo payload deliveries beyond 2028, with the company's Nova-C lander scalability to Nova-D and Super Nova being a strategic focus.
Satellite Production and Launch: The company is advancing its satellite production line, including the IM-3 mission expected to launch later this year, which will include the first lunar data relay satellite for NASA's Near Space Network Services contract.
Acquisition of Goonhilly Earth Station: The acquisition of Goonhilly Earth Station and its U.S. subsidiary, COMSAT, is expected to close in Q3 2026, expanding global ground spacing capacity and strengthening space-to-ground network capabilities.
Recurring Revenue Growth: The company is investing in infrastructure capabilities designed to support long-term recurring revenue growth, including the development of a 5-satellite lunar constellation and ground segment.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:Can you provide details on the development stage of the Nebula orbital transfer vehicle and its potential applications?
A:The Nebula orbital transfer vehicle has passed through CDR with the customer and is awaiting Phase III, which involves full-scale development and flight. It is a high-thrust, cryogenic propulsive stage capable of reaching trajectories and orbits up to 2 million kilometers. It is expected to support national security space in GEO and cislunar space.
Q:How does Intuitive Machines plan to leverage its capabilities for Orbital Data Centers?
A:Intuitive Machines plans to use its high-power generating spacecraft (up to 60,000 watts, with plans for 100 kilowatts), thermal management expertise, and network platform (including data relay satellites and ground segments) to offer unique capabilities for Orbital Data Centers. The company is exploring strategic partnerships and refining its offerings in this area.
Q:What is the financial contribution of Lanteris for the full year?
A:Management did not provide a direct answer but stated that the company reports as a single segment and integrates Lanteris into Intuitive Machines. They referenced past data from 2025 for run rate estimates but did not confirm specific figures for the full year.
Q:What differentiated Intuitive Machines and Lanteris in the Andromeda IDIQ selection process?
A:The combined offering included precision orbit determination, trajectory management, reliable 1300 Series bus production, satellite servicing capabilities, and experience with lunar missions. These factors contributed to their selection.
Q:How does the acquisition of Goonhilly and COMSAT enhance Intuitive Machines' capabilities?
A:The acquisition provides up to 44 communication dishes capable of reaching 2 million kilometers, enabling leadership in a global ground segment network. It supports the near space network and enhances capabilities for government, commercial, and international customers. The acquisition also strengthens relationships with ESA and NASA.
Q:What are the expectations for GEO COMSATs under the Andromeda program?
A:The program is in a design competition phase for highly maneuverable geostationary satellites. The future order book and replacement cycle are uncertain, but the program value is up to $6.24 billion over 10 years, indicating multiple satellites and potential replacements.
Q:What is the status of the RFP and bid process for the light version of LTV?
A:NASA restructured the task orders for LTV, requesting a smaller version with a one-year lifespan. Proposals were submitted in late April, with awards expected by May 22. Future awards may include heavier cargo deliveries under a 15-year contract.
Q:Has the competitive environment for LTV changed?
A:The competitive environment remains the same, with three vendors competing for the modified LTV award. No additional bidders have been added.
Q:What is the expected CapEx for satellites this year?
A:CapEx tied to satellites was around $9 million in the quarter and is expected to round out to approximately $30 million for the year, with values growing due to increased satellite build volume.
Q:How did the Goonhilly acquisition come together, and how will it impact the company?
A:Intuitive Machines had a strategic partnership with Goonhilly for years, and the acquisition strengthens their global ground segment leadership. Goonhilly's expertise and infrastructure will support growth in cislunar space and the near space network.
Q:What is the timing of backlog conversion and future awards?
A:Approximately 60%-65% of the backlog will convert to revenue this year. Additional awards are expected in the second half of the year, including LTV, CS-8, TDRS, and C-band clearing contracts.
Q:What is the expected timing for CLPS contracts and revenue recognition?
A:CS-8 proposals could result in awards for multiple landers, with production cycles of 24 months. CLPS 2.0, with a $6 billion budget, is expected to begin later this year, with awards potentially in November.
Q:What steps are being taken to scale production for increased demand for landers?
A:Production techniques and ground support equipment are being improved, and the supply chain is being leveraged for efficiency. Facilities in Houston and California provide capacity for parallel production of multiple landers.
Q:What is the AMDT3 proposal, and what is the opportunity for Intuitive Machines?
A:AMDT3 refers to a series of tracking satellites independent of the SDA Tranche 3 tracking layer. Intuitive Machines is extending its relationship with L3Harris for this opportunity.
Q:What synergies does the Goonhilly acquisition provide beyond NSNS?
A:The acquisition enhances the ground segment for the near space network and provides a platform for future growth in space-to-ground communications. Goonhilly's infrastructure supports LEO, GEO, and lunar communications.
Q:What is the M&A strategy for Intuitive Machines moving forward?
A:The company continues to evaluate M&A opportunities opportunistically, focusing on strategic partnerships and offerings such as Orbital Data Centers.
Q:How does the demand for agile spacecraft extend into the commercial market?
A:Agile spacecraft have potential applications in satellite servicing and on-orbit manufacturing, leveraging Intuitive Machines' robotics and reliable bus technology.
Q:How does the Goonhilly acquisition improve confidence in lunar missions?
A:The acquisition provides a gold standard for ground segment communications and navigation, improving precision in lunar orbit determination and trajectory management.
Q:Review of Unclear Management Responses
A:Management avoided providing a direct answer regarding the financial contribution of Lanteris for the full year, instead referencing past data and emphasizing integrated reporting without confirming specific figures.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Andromeda
Artemis
Build infrastructure
COMSAT
Connect
Force Space
Intuitive Machines
NASA Ignition
NASA ignition
NASA moon
NASA reconnaissance
Operate
Systems Command
Tranche
acquisition
activity
archive
build
capability orbit
clearing
delivery cadence
design field
destination
discipline
environment LTV
field generation
flight hardware
hardware production
image
layer
mission architecture
mobility
payload
production line
propulsion element
reconnaissance orbiter
requirement
service Intuitive
space ground
subsidiary
LUNR Transcript
Intuitive Machines, Inc. (LUNR) Q1 2026 Earnings Call Transcript
Positive5-14
The earnings call summary presents a positive outlook with strong revenue growth expectations, significant backlog, and strategic investments in space network expansion. The Q&A section reveals management's confidence in their capabilities, despite some lack of clarity on financial specifics. The acquisition of Goonhilly enhances their competitive position. While there are uncertainties, the overall strategic direction and expected growth in key areas suggest a positive sentiment, likely leading to a stock price increase.
Intuitive Machines, Inc. (LUNR) Q4 2025 Earnings Call Transcript
Positive3-19
The earnings call highlights strategic moves like the Lanteris acquisition, which enhances product capabilities and market positioning. Positive developments include potential revenue growth from Artemis missions and CLPS 2.0 expansion. Management's optimistic guidance and restructuring efforts indicate a strong future outlook. However, some uncertainties remain, such as unclear budget details for CLPS 2.0 and lack of guidance on outsourcing discussions. Overall, the sentiment is positive, with potential for stock price appreciation.
Intuitive Machines, Inc. (LUNR) Q3 2025 Earnings Call Transcript
Unknown11-4
The earnings call summary presents a mixed picture. While there are positive developments like the LTV program proposal and potential Mars data relay satellites, revenue guidance is weak, and there's uncertainty around the Lanteris acquisition. The Q&A reveals concerns about budget cuts and regulatory risks. Overall, the sentiment is neutral due to balanced positive and negative factors.
Intuitive Machines, Inc. (LUNR) Q2 2025 Earnings Call Transcript
Positive8-7
The earnings call highlights several positive developments, including a strong strategic focus on lunar and Mars exploration, significant contracts, and a diversified revenue stream from data services. While there are some uncertainties, such as delayed EBITDA expectations and vague backlog projections, the overall sentiment is positive due to the promising opportunities and strategic partnerships. This is likely to result in a stock price increase, particularly if the company continues to secure high-value contracts and demonstrates progress in its strategic initiatives.
LUNR Slides
LUNR Report
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