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CNBC
3 days ago
- Business
- CNBC
Investing in Space: Space IPOs are rearing their heads again
It's a brave person who calls a market closed or open, particularly for listings — you'll forgive me if I'm not the one to make that plunge. But the gentle trickle of space IPOs since the start of the year, after a dearth of listings in recent years, isn't going unnoticed. Trive Capital-backed Karman Holdings, maker of defense and space systems, went public back in February with a valuation of nearly $4 billion as shares soared during their debut. Voyager Technologies clinched a $3.8 billion valuation two months ago, as the defense and space company's stock opened 125% higher on Wednesday at $69.75 apiece, above its $31 offer price. On Thursday, Northrop Grumman-backed Firefly Aerospace — whose Blue Ghost lander successfully touched down on the Moon earlier this year — surged in its Nasdaq debut under the ticker symbol FLY. This might seem like a small step for some industries, but it's a giant leap for traditional offerings for the space sector, where for some time players such as Intuitive Machines, Rocket Lab and AST SpaceMobile listed by way of mergers with special-purpose acquisition companies (SPAC) — shell firms that pool their IPO proceeds to consolidate with a private company and take it public, bypassing some of the typical regulatory scrutiny. SPAC deals seemed on the decline after an initial 2020-2021 flurry, but are trending once more Stateside. To that end, reusable rocket maker Innovative Rocket Technologies has said it will go public through a $400 million merger with BPGC Acquisition, a SPAC backed by former U.S. Commerce Secretary Wilbur Ross. The broader IPO landscape has been in flux. EY found that the global listings market "demonstrated resilience" in first-half 2025, with China now accounting for one-third of global IPO proceeds, while the U.S. led the pack with 109 IPOs and its strongest January-June performance since the peaks of 2021. But recent geopolitical volatility triggered by the conflict in the Middle East and by Washington's protectionist trade policies have cast a shadow over global appetite for dealmaking and going public, bankers have mentioned anecdotally. For its part, U.S. space research and tech-oriented M&A picked up to four deals totalling $280 million in the second quarter, according to Dealogic data shared with CNBC. "A global IPO market rebound hinges on more cooperative trade frameworks, accommodative monetary policy, controlled inflation and geopolitical de-escalation," EY noted. "Companies aligned with national priorities and innovation, and those able to present a credible equity story with realistic valuations and flexible timing, are likely to succeed in navigating this complex environment." Space companies, by definition, tick at least some of those boxes. Lukas Muehlbauer, research analyst at IPOX, qualified this is "definitely a good time for Space IPOs," with initiatives like the U.S.' push for the Golden Dome missile interception system fueling high valuations. "American space companies are well-insulated from tariffs on the revenue side, especially when predictable income streams are provided by U.S. Government contracts - a common feature for defense-adjacent firms," he told CNBC by email. "Still, most firms in the sector are dependent on foreign-made satellite components, creating a vulnerability to cost increases and deployment delays caused by trade disputes." He nevertheless warned that the "intensifying" competition in the private launch market — where companies are looking to reduce costs, particularly by deploying reusable tech and infrastructure — could create "downward pressure on costs." "This will be a key factor in lowering the sector's high entry barriers, making a new generation of space-based business models commercially feasible," Muehlbauer noted. The timing is also ripe, with space ventures generating a fair bit of hype over their growth potential. Last month, a report from Seraphim Space found investment in space startups soared to $3.1 billion over the April-June period, up sharply from $2.1 billion over the January-March stretch. "Investors understand the risks in this sector, but they also understand the scale of what is being built. These companies are not being valued on near-term cash flow, but on their ability to deliver long-term strategic infrastructure," Cristiano Dalla Bona, who heads North America ECM analysis at Mergermarket, said in emailed comments. "What we are seeing now is an enthusiastic public investor base. Still, the credibility and visibility on growth of each new candidate will likely be scrutinized." The sector has also been firmly in the public eye, with headlines ranging from NASA layoffs, Elon Musk's vocal involvement with — and later explosive exit from — the White House and Trump's push for the Golden Dome missile interception system. And, talking about going public, NASA's even infiltrated civilian households and began streaming on Netflix this summer with the recent live broadcast of the SpaceX Crew-11 launch. SpaceX delivers Crew-11 to the ISS — A four-person astronaut team reached the International Space Station following a 15-hour flight. — Sky News Air leak continues in Russia's ISS module — Despite efforts to rein in losses, the Russian segment of the International Space Station is still suffering from air leaks, which were first detected in 2019. — The Register First quantum computer launched in space — A satellite carrying a small quantum computer entered orbit in late June, with its hardware now operational and demonstrations of its capabilities pending. — Science News Why NASA will plunge the International Space Station in the ocean in 2031 — NASA is planning the controlled deorbit of the International Space Station in the remote Point Nemo part of the Pacific Ocean, after roughly three decades of the space lab's service. The Times of India explores why. — Times of India Roscosmos, NASA extend ISS operations until 2028 — The heads of Roscosmos and NASA have agreed to further the two agencies' cooperation on operating the International Space Station until 2028. Relations between the two space agencies and between Washington and Moscow more broadly have been strained in recent years by Russia's war in Ukraine. — France24 Rheinmetall and Lockheed Martin carry out GMARS artillery system tests — Rheinmetall and Lockheed Martin's Global Mobile Artillery Rocket System (GMARS), which is compatible with NASA's M270 and HIMARS, is undertaking tests in the U.S. — Defence Industry Europe Japan wants to set up international regulation for space debris removal — Tokyo is looking to establish international rules for the removal of human-made space debris that can pose risks, with an eye to lead discussions by the time of the 2026 meeting of the U.N. Committee on the Peaceful Uses of Outer Space, officials have said. — Kyodo News Israel sets up new initiative for space tech development — Israel is launching a NIS 40 million ($11.73 million) program for start-ups and established firms to boost domestic advances in space tech and research. — The Jerusalem Post Lockheed Martin looks to test space-based missile interceptors by 2028 — Lockheed Martin has set a 2928 deadline to demo a space interceptor able of targeting hypersonic missile — a key component of the proposed Golden Dome anti-missile system. — SOFX NASA to set timeline for nuclear reactor on the Moon — NASA interim head Sean Duffy will set out a 2030 deadline for the space agency to establish a 100-kilowatt nuclear reactor on the Moon, Politico has learned. — Politico Firefly Aerospace rises more than 30% in Nasdaq debut – Firefly Aerospace's stock added more than 34% in the company's debut under the ticker FLY. - CNBC Space company listings are bucking the trend — Some industry voices claim the spate of space companies that have gone public or intend to do so mark an outlier, rather than a broader movement. — Space News Eutelsat posts revenue surge, forecasts GEO decline — French satellite operator Eutelsat beat expectations in yearly results to the end of June, with revenues up 84%. The company nevertheless flagged a 7% drop in geostationary revenues over the period. — Space News Vaya Space clinches $1.2 million hypersonic propulsion contract — Vaya Space has secured a $1.24 million contract toward the development of the Hybrid-Fueled Ramjet hypersonic missile propulsion system. — SatNews Voyager Technologies posts first earnings after IPO — Voyager Technologies reported a worse-than-expected loss of $0.60 per share in its second-quarter results, despite revenues exceeding forecasts. — The Motley Fool Aug. 8 — SpaceX Crew-10 to return to Earth from the International Space Station aboard the Dragon Endurance Aug. 9 — SpaceX's Falcon 9 to launch with Starlink satellites out of California Aug. 12 — United Launch Alliance's Vulcan Centaur to depart on the United States Space Force (USSF)-106 mission out of Florida Aug. 12-13 — Arianespace's Ariane 6 to take off with the European Organization for the Exploitation of Meteorological Satellites' MetOp-SG A1 out of the French Guiana Aug. 13-14 — SpaceX's Falcon 9 rockets head out with Starlink satellites out of Florida and California
Time of India
4 days ago
- Business
- Time of India
Firefly Aerospace hits $9.8 billion valuation in Nasdaq debut as shares takeoff
Advt Advt Space scrutiny Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. Get updates on your preferred social platform Follow us for the latest news, insider access to events and more. Firefly Aerospace secured a valuation of $9.84 billion after its shares surged 55.6 per cent in their Nasdaq debut on Thursday, as investors continue to pour capital into companies aiding the expansion of the US space and defense stock opened at $70 apiece compared with the IPO price of $45, marking a striking turnaround for a once-beleaguered company now riding high on its lunar business and lucrative military-space prospects. Shares of the Texas-based firm went as high as $71.16 which became the first private enterprise to achieve a successful lunar landing five months ago, raised $868.3 million in an upsized IPO at $45 per share, above its already bumped up marketed its IPO, the largest US listing this year by a space tech firm, Firefly was valued at $6.32 billion - ahead of both Trive Capital-backed Karman Holdings and Voyager Technologies, which went public earlier this year."We at Firefly have had a lot of successes toward going public," CEO Jason Kim told Reuters on Thursday, noting the company's breakthrough moon landing, a rapid Pentagon launch with its medium-sized Alpha rocket in 2023 and a burgeoning business line that will offer maneuverable space vehicles for the US Space IPOs have picked up pace after tariff-driven volatility hampered listings in April, reigniting a long-awaited recovery of first-time share sales."I think we will continue to see strong debuts for large-cap IPOs for the remainder of the year," said Ross Carmel, partner at law firm Sichenzia Ross Ference has come a long way from a tumultuous past, including a bankruptcy in 2017 and a CEO ouster last bankruptcy led to billionaire Ukrainian investor Max Polyakov's Noosphere Ventures acquiring a majority stake in the company that, four years later, was forced to be sold to AE Industrial Partners over national security concerns raised by the US in 2014 by Tom Markusic, now its chief technology officer, Firefly started as a launch company centered on its medium-sized, 95-foot-tall Alpha rocket. It has since expanded into spacecraft and lunar lander business to provide mission services for governments and a nascent lunar market."The best companies go through hard times and challenges, but the best companies get back up and then continuously improve," said Kim, who took the helm at Firefly last year after leading the Boeing-owned small satellite firm Millennium Space Houston-based Intuitive Machines was the first private firm to reach the moon last year, its Odysseus lander made a lopsided touchdown, foiling most of its onboard customers' mission Blue Ghost landed safely on the moon in March, a milestone for a scrappy unit that was once tertiary to other business goals. It was also a breakthrough moment for NASA and its contracting model designed to stimulate private missions to the moon."Firefly has already demonstrated responsive launch capabilities and delivered a lunar payload - proof points that matter to the Space Force and NASA," said Ali Javaheri, emerging technology analyst at company had a backlog of roughly $1.1 billion and more than 30 planned launches under contract as of March 31."Investors will likely focus on backlog growth, gross margin trends as production scales, and Firefly's cash runway post-IPO," Javaheri company, however, expects to incur net losses for the next several years, according to geopolitical tensions and deteriorating international relations have put a spotlight on space and defense contractors, as US President Donald Trump aims to bolster military and civil space programs with the efficiencies of for-profit Musk's SpaceX - which has about $22 billion in government contracts - has grown critical to the global satellite network, potentially managing a crucial element of the "Golden Dome" missile defense shield planned by rapid growth in the space industry and Musk's latest tensions with Trump, however, have prompted officials to open talks with other rocket and tech manufacturers, with some citing national security concerns around concentrated said Firefly is eyeing a potential role in the Golden Dome program, noting its Alpha rocket could be used to launch test missile targets for the system or its Elytra spacecraft platform could host space-based missile interceptors envisioned by the program."We will be able to rate up our production line to meet that growing demand," Kim said of Golden has had backing from US defense contractor Northrop Grumman in a partnership to jointly build a bigger rocket named Eclipse, set for a debut launch from Wallops Island, Virginia, as early as 2026."Northrop Grumman's involvement signals alignment with national security priorities, while Mitsui's presence opens pathways to Asia and helps shore up supply-chain resilience," PitchBook's Javaheri is one of the three suppliers of solid rocket motors to the US.
Time of India
4 days ago
- Business
- Time of India
Firefly Aerospace ignites Wall Street as it raises $868 million in biggest space IPO. All about SpaceX rival
Firefly Aerospace, a market leading space and defense technology raised $868 million in its initial public offering, selling more than 19 million shares at $45 each. Firefly Aerospace began trading on Nasdaq Thursday after raising $868.3 million in the largest US listing this year by a space tech company. That is ahead of both Trive Capital-backed Karman Holdings and Voyager Technologies, which went public earlier this year, reports news agency Reuters. Firefly Aerospace impressed Wall Street with its $45 per share IPO, topping recent launches from others in the sector like Karman Holdings and Voyager Technologies. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Firefly Aerospace is scheduled to begin trading Thursday on the Nasdaq stock exchange under the ticker symbol (NASDAQ:FLY). Firefly Aerospace, which achieved a successful moon landing earlier this year, intends to allocate a portion of its IPO proceeds toward debt reduction, according to its prospectus. ALSO READ: VA terminates major union contracts and it will impact over 400,000 federal workers. What's at stake for you? Live Events In 2024, the company generated approximately $61 million in revenue, marking a 10% rise from the previous year. However, its net loss widened significantly—from $136 million in 2023 to $231 million in 2024. The company's research and development expenses jumped 27% to nearly $150 million, largely fueled by ongoing work on its Eclipse rocket and Elytra vehicle. U.S. defense contractor Northrop Grumman, which invested $50 million into Firefly in May, is one of the three suppliers of solid rocket motors to the U.S. Goldman Sachs, J.P. Morgan, Jefferies and Wells Fargo Securities are the lead underwriters for the IPO. All about Firefly Aerospace Located in Cedar Park, Texas, Firefly Aerospace was founded in 2017 and is a space and defense technology company. Firefly specializes in cost-effective launch vehicles and spacecraft, including lunar landers, to provide space launch and mission services. In other words, the company helps get satellites and other vehicles into space. ALSO READ: $1,702 stimulus check in August: Last chance to apply for PDF closes soon. Check key dates, eligibility, tax implication Firefly specializes in small- to medium-lift launch vehicles, as well as lunar landers and orbital vehicles. The Texas-based company focuses on cost-effective rockets and spacecraft, and made headlines in March with its Blue Ghost lander – becoming only the second private firm ever to pull off a successful moon landing. With over $1.1 billion in contracts lined up and recent backing from defense giant Northrop Grumman, Firefly is deepening its presence in national security. "Firefly has already demonstrated responsive launch capabilities and delivered a lunar payload-proof points that matter to the Space Force and NASA," Ali Javaheri, emerging technology analyst at PitchBook, told Reuters. ALSO READ: Teens can be ICE agents as US drops age cap. Check eligibility criteria, benefits and more "Investors will likely focus on backlog growth, gross margin trends as production scales, and Firefly's cash runway post-IPO," Javaheri said. The company had a backlog of roughly $1.1 billion and more than 30 planned launches under contract as of March 31. The company, however, expects to incur net losses for the next several years, according to filings. Firefly faces stiff competition in the space industry, most notably from Elon Musk's powerhouse, SpaceX. While SpaceX employs roughly 13,000 people (according to PitchBook), Firefly operates with a leaner team of over 800. The company prides itself on its nimbleness, claiming it can launch a satellite into orbit with just 24 hours' notice.
Yahoo
30-07-2025
- Business
- Yahoo
Strong Earnings Results Lifted Karman Holdings (KRMN) in Q2
Baron Funds, an investment management company, released its 'Baron Discovery Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund was up 14.76% (Institutional Shares), outperforming the 11.97% return for the Russell 2000 Growth Index. The fund was up 7.68% year-to-date, well ahead of the Index's -0.48% return. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, Baron Discovery Fund highlighted stocks such as Karman Holdings Inc. (NYSE:KRMN). Karman Holdings Inc. (NYSE:KRMN) engages in designing, testing, manufacturing, and sale of mission-critical systems. The one-month return of Karman Holdings Inc. (NYSE:KRMN) was 13.64%, and its shares gained 43.80% of their value in the last three months. On July 29, 2025, Karman Holdings Inc. (NYSE:KRMN) stock closed at $51.41 per share with a market capitalization of $6.803 billion. Baron Discovery Fund stated the following regarding Karman Holdings Inc. (NYSE:KRMN) in its second quarter 2025 investor letter: Shares of Karman Holdings Inc., a best-in-class supplier of defense systems, rose during the quarter after the company reported strong earnings results that exceeded investor expectations. The company is well positioned across nearly all of the fastest-growing areas within the upcoming $1 trillion-plus U.S. defense budget (including missile defense and hypersonic technology) and supports most of the leading space launch companies (with market leading rocket component technology). We believe Karman's position should enable it to outpace overall defense budget growth and continue to earn exceptional margins. A satellite being released from a launch vehicle, heading into space. Karman Holdings Inc. (NYSE:KRMN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Karman Holdings Inc. (NYSE:KRMN) at the end of the first quarter, which was 0 in the previous quarter. In the first quarter of 2025, Karman Holdings Inc. (NYSE:KRMN) reported record revenue of $100.1 million, reflecting a 20.6% year-over-year increase. While we acknowledge the potential of Karman Holdings Inc. (NYSE:KRMN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Karman Holdings Inc. (NYSE:KRMN) and shared the list of stocks recently discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-07-2025
- Business
- Bloomberg
Space Firm Karman's Investors Offer to Sell 20 Million Shares
A group of investors in Karman Holdings Inc. including an affiliate of its largest shareholder is offering to sell 20 million shares in the company, nearly five months after its IPO. Trive Capital, a Dallas-based private equity firm, and Karman executives including Chief Executive Officer Tony Koblinski, are the sellers, according to a filing with the US Securities and Exchange Commission on Monday. The deal will be marketed for two days and price Wednesday after the US market close, according to people familiar with the matter. A representative for Karman didn't immediately respond to a request for comment.
