Latest news with #NextGenerationInterceptor
Yahoo
a day ago
- Business
- Yahoo
Lockheed Martin to open large missile assembly building in Courtland early 2026
COURTLAND, Ala. (WHNT) — A major American defense contractor is expanding its operations in North Alabama by bringing another large facility to a small town in Lawrence County. Lockheed Martin told News 19 that a new 88,000 square-foot Missile Assembly Building is currently under construction in Courtland. The new building is expected to open early 2026, the company said. Lockheed Martin said the spacious building will help advance defense systems in Courtland. The building is being built for the Next Generation Interceptor program. Lockheed Martin's website says with the NGI program, the mission is to 'develop, produce and deliver a modern, never-fail weapon against increasing and evolving ballistic missile threats from rogue nations. NGI is a first line of defense, tip-to-tail interceptor within the Missile Defense Agency's Ground-based Midcourse Defense (GMD) system.' The company said Courtland currently supports critical defense programs for the Army, Navy and Missile Defense Agency. Over 400 employees currently work at the Courtland site, and Lockheed said it expects an increase in workforce in 2026 following the opening of the new building. 'We're not just working on defense programs. We're defining what the future of missile defense looks like,' Lockheed Martin said. The company has a long-standing relationship with the town of Courtland. In 2019, the company announced that it would have a Hypersonic Strike Work manufacturing plant with two new buildings. The Aerospace and Defense company broke ground at the site in September 2019 and it was officially opened on October 4, 2021. The milestone of opening this building established northern Alabama as the 'Home of Hypersonic Strike Production,' Lockheed Martin said. In 2023, Lockheed Martin developed a partnership with the town of Courtland and helped convert its part-time fire department into a full-time, 24/7 emergency service with new equipment and staffing. Through a partnership with the State of Alabama, Lockheed Martin said it received a $1.8 million infrastructure grant to improve roads around the 88,000 square-foot facility. 'Lockheed Martin is building advanced defense systems in Courtland, but more importantly, we are investing in the future of the community. From workforce development and infrastructure upgrades to enhanced emergency services, our commitment extends beyond our facility. Real progress happens when industry and community grow together, and we are proud to help build a stronger, more resilient future for Courtland and the surrounding region.' Sarah ReevesVice President, Next Generation Interceptor (NGI) Program Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Business Wire
04-08-2025
- Business
- Business Wire
Voyager Reports Second Quarter 2025 Financial Results
DENVER--(BUSINESS WIRE)--Voyager Technologies, Inc. [NYSE: VOYG] ('Voyager' or the 'Company'), today announced financial results for the second quarter 2025. Business and Financial Performance Highlights Completed IPO, raising proceeds of $409.4 million, net of underwriting fees Delivered record net sales of $45.7 million, up 25% year over year, including 85% growth from the Defense and National Security segment Starlab met four NASA milestones and received cash proceeds of $22.5 million Incurred net loss of $(31.4) million, a dilutive loss of $(36.6) million and loss per diluted share of $(1.23), including non-recurring costs associated with the Company's IPO Non-GAAP Adjusted EBITDA of $(9.1) million, non-GAAP adjusted loss of $(18.0) million and non-GAAP adjusted loss per share of $(0.60) Closed the quarter debt-free, with $468.9 million of cash and cash equivalents, and with total liquidity of $668.9 million, including $200 million undrawn on revolving credit facility Acquired Optical Physics Company to strengthen the Company's optical guidance technology 'We delivered strong growth this quarter by staying focused on our core strengths and sharpening execution, with a record quarterly net sales of $45.7 million. We're seeing the results of the team driving smart investments, execution and operations, while simplifying how we work,' said Voyager Technologies CEO Dylan Taylor. 'We are furthering our execution and progress at Starlab by achieving critical milestones, resulting in cash proceeds of $22.5 million from NASA. We also generated 85% net sales growth in the Defense and National Security segment as a result of strategic programs such as Next Generation Interceptor, which enable us to seize high-impact growth opportunities ahead.' 'We enter the second half of 2025 with a differentiated, debt-free balance sheet, with total liquidity of $669 million to drive organic and inorganic growth initiatives. Our strategy is centered on disciplined growth and expanded customer capabilities for long-term shareholder value,' continued Taylor. 'Voyager's IPO, performance and confidence of investors uniquely positions the company to drive sustained value through 2025, building a strong foundation for durable growth.' Business and Financial Performance Results Voyager net sales grew $9.0 million or approximately 25% year over year to $45.7 million. Voyager's Defense and National Security segment provides leading technology capabilities that support marquee programs with expertise in defense systems, signals intelligence, communication technologies, and guidance, navigation and control systems. For the three month ended June 30, 2025, the Defense and National Security segment net sales increased $16.2 million, or 85% year over year, to $35.2 million, primarily driven by progress on the Next Generation Interceptor ('NGI') program and an undisclosed program. Voyager's Space Solutions segment operates at the forefront of space technology, specializing in mission enabling, reliable hardware, software and engineering services for space missions. For the three month ended June 30, 2025, the Space Solutions segment net sales declined $9.0 million, or 45% year over year, to $11.1 million primarily due to the anticipated conclusion of a multi-year service contract with NASA. Our Starlab Space Stations segment is a Voyager-led, majority-owned joint venture focused on developing the commercial replacement for the International Space Station. While Starlab does not generate revenue today, nor is expected to generate revenue in the near term, we have received significant funding from NASA under our Space Act Agreement. In the second quarter of 2025, Starlab achieved four key milestones and received $22.5 million in cash from NASA, highlighting strong progress and continued momentum. Backlog As of June 30, 2025, total backlog was $170.9 million, including $90.3 million of funded backlog from signed contracts with remaining work. Funded contracts represent definitized contracts for performance obligations from customers that contain the right to receive consideration in exchange for goods transferred to the customer. The unfunded portion (also referred to as unfunded contract options) includes contract options not yet exercised and potential work under Indefinite Delivery/Indefinite Quantity contracts. Innovation Spend Innovation is a foundational pillar of our long-term strategy and a key differentiator across the defense, national security and space sectors. For the three month ended June 30, 2025, innovation spend was 18% of net sales, excluding Starlab, and 85% on a consolidated basis. See Table 5 for additional details. Business Outlook for the Full Year 2025 For the full year 2025, the Company expects total net sales in the range of $165 million to $170 million, and non-GAAP Adjusted EBITDA in the range of $(63) million to $(60) million. The foregoing estimates are forward-looking and reflect management's view of current and future market conditions, subject to certain risks and uncertainties, including certain assumptions with respect to our ability to efficiently and on a timely basis integrate acquisitions, obtain and retain contracts, changes in the timing and/or amount of government spending, react to changes in the demand for our products, activities of competitors, changes in the regulatory environment, and general economic and business conditions in the United States and elsewhere in the world. Investors are reminded that actual results may differ materially from these estimates and investors should review all risks related to achievement of the guidance reflected under 'forward-looking statements' below and in the Company's filings with the Securities and Exchange Commission. Conference Call and Live Webcast Voyager Technologies, Inc. will host its second quarter 2025 earnings conference call Tuesday, August 5, 2025, at 9 a.m. ET. Hosting the call to review results will be Dylan Taylor, Chief Executive Officer; Phil De Sousa, Chief Financial Officer; and Adi Padva, Senior Vice President, Corporate Development and Investor Relations. A live webcast of the call will be made available on the Events & Presentations section of Voyager's Investor Relations website at The earnings release and presentation will be posted to the Investor Relations website prior to the call. A replay of the call will be available approximately one hour after the call through the archived webcast on the Events & Presentations section of Voyager's Investor Relations website. Audio Replay An audio replay of the event will be archived on the Investor Relations section of the Company's website at About Voyager Technologies, Inc. Voyager Technologies, Inc. is a defense and space technology company committed to advancing and delivering transformative, mission-critical solutions. By tackling the most complex challenges, Voyager aims to unlock new frontiers for human progress, fortify national security, and protect critical assets from ground to space. For more information visit: Non-GAAP Financial Measures Non-GAAP financial measures are not calculated or presented in accordance with GAAP and other companies in our industry may calculate them differently than we do. As a result, non-GAAP financial measures have limitations as analytical and comparative tools and you should not consider them in isolation, or as a substitute, for analysis of our results as reported under GAAP. In addition, in evaluating Adjusted EBITDA, adjusted earnings per share and free cash flow, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of Adjusted EBITDA, adjusted loss per share and free cash flow should not be construed as an inference that our future results will be unaffected by unusual items. Management compensates for these limitations by primarily relying on our GAAP results in addition to using Adjusted EBITDA, adjusted earnings per share and free cash flow supplementally. Adjusted EBITDA We consider Adjusted EBITDA to be a useful, supplemental, measure of our operating performance. We use Adjusted EBITDA to supplement GAAP measures in evaluating the performance of our business and the effectiveness of our strategies, to make budgeting decisions, make certain compensation decisions, and to compare our performance against that of our peer companies, many of which present similar non-GAAP financial measures. In addition, we believe Adjusted EBITDA provides a useful measure for period-to-period comparisons of our business, as they remove the impact of our capital structure and other items not indicative of our core operating performance from operating results. We define EBITDA as net loss attributable to Voyager Technologies, Inc. plus (less) finance and interest expense, provision for income tax expense (benefit), and depreciation and amortization. We define Adjusted EBITDA as EBITDA adjusted for stock-based compensation, business acquisition costs, restructuring charges, impairment losses, income (loss) attributable to noncontrolling interests, and other items we do not believe are indicative of our core operating performance, including incremental organizational costs attributable to our initial public offering, changes in the fair value of earnout liabilities, and foreign exchange gain/loss. Free Cash Flow We consider free cash flow to be a useful, supplemental measure of our ability to generate cash on a normalized basis. We use free cash flow to supplement GAAP measures in evaluating our flexibility to allocate capital and pursue opportunities that may enhance shareholder value and the effectiveness of our strategies, to make budgeting decisions and to compare our performance against that of our peer companies, many of which present similar non-GAAP financial measures. We believe that while expenditures and dispositions of property, plant and equipment will fluctuate on a period-to-period basis, we seek to ensure that we have adequate capital on hand to maintain ongoing operations and enable growth of the business. Additionally, free cash flow is of limited usefulness in that it does not represent residual cash flows available for discretionary expenditures due to the fact the measures do not deduct the payments required for debt service and other contractual obligations or payments. We define free cash flow as the sum of our cash (used in) provided by operating activities less our net capital expenditures. The net capital expenditures of the Company are defined as the gross capital expenditures for the purchase of property and equipment less the grant funding we received in order to make such purchases. Based on the nature of government grants for purposes of funding capital expenditures on our Starlab program, these grants are pass through for purposes of making capital expenditures as they are directly used to source funding on capital expenditures. Our calculation of free cash flow may not be comparable to the calculation of similarly titled measures reported by other companies. Adjusted Earnings Per Share We consider adjusted earnings per share to be a useful, supplemental measure of our operations on a per share basis adjusting for items that are considered either non-operational or significant infrequent expenses or that are sources of income that are not recurring to the business on a frequent basis. We define adjusted earnings per share as the net income/loss attributable to common stockholders adjusted for stock-based compensation, business acquisition costs, restructuring, and other items mainly related to financing expenses and other individually immaterial items divided by our diluted basis number of weighted average shares outstanding during the period. Since the adjustments made for presentational purposes do not impact the tax basis of the Company, the adjustments have been presented on a tax free basis. Innovation Spend We are focused on delivering innovative solutions to the defense, national security and space end markets, and research and development is at the core of our business. We believe innovation spend and innovation spend excluding Starlab provide our management and investors useful measures of our aggregate spend on research and development type activities in support of our customers' needs and our future growth. However, innovation spend is an operating metric, not a financial measure calculated or presented in accordance with GAAP, and companies in our industry may calculate innovation spend or similar operating metrics differently than we do. We define innovation spend as research and development costs associated with IRS Section 174 categorization, as well as spend on designated development programs. Development programs are defined as initiatives that, when developed, will expand the Company's product offerings under a customer funded arrangement. Innovation spend is comprised of various costs recognized in cost of sales and research and development costs within the consolidated statements of operations, as well as certain costs capitalized within property and equipment, net on our consolidated balance sheets. We define innovation spend excluding Starlab as innovation spend, minus the portion of innovation spend attributable to Starlab Space Stations. Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. We intend all forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding Voyager's financial outlook, anticipated financial and operational performance and long-term value creation. The words 'expect,' 'expectation,' 'believe,' 'anticipate,' 'may,' 'could,' 'intend,' 'belief,' 'plan,' 'estimate,' 'target,' 'predict,' 'likely,' 'seek,' 'project,' 'model,' 'ongoing,' 'will,' 'should,' 'forecast,' 'outlook' or similar terminology are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on and reflect our current expectations, estimates, assumptions and/or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither promises nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements to differ materially from those indicated by those statements including, but not limited to: our ability to generate, sustain and manage our growth given our limited operating history in an evolving industry; factors out of our control that affect our success and revenue growth; our ability to generate a sustainable order rate for our products and services and develop new technologies to meet customer needs; our compliance with development contracts with third-parties and losses from fixed price contracts; our history of losses and ability to achieve profitability; risks related to Starlab; the unpredictable environment of space; our customer concentration and risks with contracting with the U.S. government; risk related to our international operations, currency fluctuations and political or economic instability in markets in which we operate; risks related to our compliance with new or existing data privacy, cybersecurity and other applicable regulations; our inability to adequately enforce and protect our intellectual property; our ability to consummate future acquisitions on satisfactory terms or effectively integrate acquired operations; and other important factors discussed in the section entitled 'Risk Factors' in our final prospectus on form 424(b)(4) filed with the Securities and Exchange Commission (the 'SEC') on June 12, 2025, as any such factors may be updated from time to time in our other filings with the SEC, accessible on the SEC's website at and our investor relations site at The forward-looking statements included in this announcement are only made as of the date of this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable law. Website Disclosure Investors and others should note that we announce material financial and operational information to our investors using press releases, SEC filings and public conference calls and webcasts, as well as our investor relations site at We may also use our website as a distribution channel of material information about the company. In addition, you may automatically receive email alerts and other information about Voyager when you enroll your email address by visiting the 'Investor Email Alerts' option under the Resources tab on (Unaudited, in thousands, except share and per share amounts) December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 468,925 $ 55,930 Accounts receivable, net 12,674 15,360 Contract assets 21,609 17,304 Inventories 1,424 1,526 Prepaid expenses and other current assets 6,793 11,461 TOTAL CURRENT ASSETS 511,425 101,581 Property and equipment, net 67,559 49,439 Operating lease right-of-use assets 8,625 8,167 Intangible assets, net 36,993 34,684 Goodwill 50,510 46,515 Other assets 10,228 7,210 TOTAL ASSETS $ 685,340 $ 247,596 LIABILITIES, MEZZANINE EQUITY, AND EQUITY (DEFICIT) Current liabilities: Accounts payable $ 20,748 $ 22,787 Contract liabilities 10,171 21,365 Operating lease liabilities 3,386 3,000 SMI promissory note, current — 665 Accrued expenses and other current liabilities 56,988 39,594 TOTAL CURRENT LIABILITIES 91,293 87,411 Term loan, net — 56,991 Operating lease liabilities, non-current 6,108 6,205 Contract liabilities, non-current 2,948 2,762 Convertible notes, net — 7,435 Embedded derivatives — 2,723 Deferred tax liabilities 203 112 Other long-term liabilities 1,969 102 SMI promissory note — 23,928 TOTAL LIABILITIES $ 102,521 $ 187,669 Mezzanine equity: Class A-1 redeemable preferred stock: $0.0001 par value; 0 shares authorized, issued and outstanding at June 30, 2025; 7,500,000 shares authorized and 6,967,720 shares issued and outstanding at December 31, 2024; redeemable at the option of the holder with a liquidation preference of $105,581 at December 31, 2024 $ — $ 93,496 Redeemable noncontrolling interests 19,836 32,431 Equity: Class A preferred stock: $0.0001 par value per share; 0 shares authorized, issued, and outstanding at June 30, 2025; 1 share authorized, issued, and outstanding at December 31, 2024; liquidation preference of $1 — — Class B convertible preferred stock: $0.0001 par value per share; 0 shares authorized, issued, and outstanding at June 30, 2025; 4,400,000 shares authorized and 3,285,995 shares issued and outstanding at December 31, 2024; liquidation preference of $146,454 at December 31, 2024 — 132,835 Class C preferred stock: $0.0001 par value per share; 0 shares authorized, issued, and outstanding at June 30, 2025; 4,600,000 shares authorized and 1,537,818 shares issued and outstanding at December 31, 2024 — 63,464 Common stock: $0.0001 par value per share; 0 shares authorized, issued, and outstanding at June 30, 2025; 375,000,000 shares authorized and 13,297,289 shares issued and outstanding at December 31, 2024 — 1 Class A common stock: $0.0001 par value per share; 400,000,000 shares authorized; 52,511,887 shares issued and outstanding at June 30, 2025, 0 shares authorized, issued, and outstanding at December 31, 2024. 5 — Class B common stock: $0.0001 par value per share; 50,000,000 shares authorized; 5,713,566 shares issued and outstanding at June 30, 2025, 0 shares issued and outstanding at December 31, 2024. 1 — Additional paid-in capital 894,226 15,081 Accumulated other comprehensive (loss) income (83 ) 28 Accumulated deficit (339,433 ) (281,113 ) Total Voyager Technologies, Inc. equity (deficit) 554,716 (69,704 ) Noncontrolling interests 8,267 3,704 TOTAL EQUITY (DEFICIT) 562,983 (66,000 ) TOTAL LIABILITIES, MEZZANINE EQUITY, AND EQUITY $ 685,340 $ 247,596 Expand CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except share and per share amounts) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net sales $ 45,674 $ 36,653 $ 80,181 $ 66,869 Cost of sales 37,464 27,390 66,386 51,425 Selling, general, and administrative 30,241 13,295 56,527 28,885 Research and development 502 6,870 4,542 7,637 Amortization of acquired intangibles 1,604 1,745 3,152 3,489 Loss from operations $ (24,137 ) $ (12,647 ) $ (50,426 ) $ (24,567 ) Other income (expense): Loss on debt extinguishment $ (7,804 ) $ (10,713 ) $ (7,804 ) $ (10,713 ) Finance and interest expense, net (2,523 ) (3,095 ) (5,252 ) (6,089 ) Other income, net 1,480 282 2,617 492 Loss before income taxes (32,984 ) (26,173 ) (60,865 ) (40,877 ) Income tax expense (benefit) 81 (122 ) 129 126 Net loss (33,065 ) (26,051 ) (60,994 ) (41,003 ) Net loss attributable to noncontrolling interests (1,683 ) (2,729 ) (2,674 ) (2,858 ) Net loss attributable to Voyager Technologies, Inc. (31,382 ) (23,322 ) (58,320 ) (38,145 ) Less: dividends accrued on preferred stock 5,258 5,481 11,259 10,488 Net loss attributable to common shareholders $ (36,640 ) $ (28,803 ) $ (69,579 ) $ (48,633 ) Net loss per common share: Basic $ (1.23 ) $ (2.29 ) $ (3.16 ) $ (3.88 ) Diluted $ (1.23 ) $ (2.73 ) $ (3.16 ) $ (4.32 ) Weighted-average shares outstanding Basic 29,695,203 12,574,261 22,017,362 12,536,053 Expand CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) Six Months Ended June 30, 2025 June 30, 2024 Cash Flows from Operating Activities: Net loss $ (60,994 ) $ (41,003 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,310 5,471 Stock-based compensation 13,270 1,843 Amortization of operating lease right-of-use assets 1,352 1,364 Loss on debt extinguishment 7,804 10,713 Amortization of debt issuance costs and other non-cash interest expense 2,300 2,896 Reduction in fair value of earnout — (5,956 ) Deferred Taxes 89 (201 ) Non-cash services acquired 10,619 9,500 Other 76 217 Change in operating assets and liabilities, net of acquisitions: Accounts receivable 2,714 (3,837 ) Prepaid expenses and other current assets (2,666 ) (282 ) Contract assets (2,521 ) (1,030 ) Inventory 102 543 Other assets (936 ) (2,989 ) Accounts payable 3,060 (4,388 ) Contract liabilities (12,559 ) 4,883 Accrued expenses 3,812 4,625 Operating lease liabilities (1,522 ) (1,335 ) Other liabilities (213 ) (89 ) Net cash used in operating activities $ (30,903 ) $ (19,055 ) Cash Flows from Investing Activities: Purchases of property and equipment $ (57,865 ) $ (32,325 ) Grant funding for property and equipment 38,250 14,250 Acquisitions, net of cash acquired (6,572 ) — Purchase of investment — — Net cash used in investing activities $ (26,187 ) $ (18,075 ) Cash Flows from Financing Activities: Proceeds from term loan, net $ — $ 57,922 Repayment of term loan (64,420 ) (56,574 ) Borrowings from the credit facility 64,500 — Repayments on the credit facility (64,500 ) — Proceeds from the exercise of stock options 155 — Proceeds from the issuance of Common stock, net 45,886 — Proceeds from the issuance of Class C preferred stock, net 116,047 37,197 Proceeds from the issuance of Class A common stock upon initial public offering, net of underwriting costs 409,405 — Costs associated with initial public offering (3,502 ) — Sale of noncontrolling interest 6,029 13,425 Purchase of noncontrolling interest (7,001 ) — Redemptions of Class A-1 redeemable preferred stock (3,044 ) — Cash repayment of Preferred B dividends (27,584 ) — Costs associated with the credit facility (2,146 ) — Proceeds from the convertible note 130 4,721 Net cash provided by financing activities $ 469,955 $ 56,161 Effect of foreign exchange on cash and cash equivalents $ 130 $ (13 ) Net increase in cash and cash equivalents 412,995 19,018 Cash and cash equivalent at the beginning of the period 55,930 30,279 Cash and cash equivalents at the end of the period $ 468,925 $ 49,297 Expand TABLE 1 - NET SALES (Unaudited, in thousands) Three Months Ended Change Six Months Ended Change Net Sales: Defense and National Security $ 35,191 $ 19,029 $ 16,162 84.9 % $ 58,736 $ 33,730 $ 25,006 74.1 % Space Solutions 11,124 20,100 (8,976 ) (44.7 )% 23,428 37,143 (13,715 ) (36.9 )% Starlab Space Stations — — — — — — — — Total net sales, reportable segments 46,315 39,129 7,186 18.4 % 82,164 70,873 11,291 15.9 % Intersegment eliminations (641 ) (2,476 ) 1,835 (74.1 )% (1,983 ) (4,004 ) 2,021 (50.5 )% Total Net Sales $ 45,674 $ 36,653 $ 9,021 24.6 % $ 80,181 $ 66,869 $ 13,312 19.9 % Expand TABLE 2 - ADJUSTED EBITDA (Unaudited, in thousands) Three Months Ended Six Months Ended (dollars in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net loss attributable to Voyager Technologies, Inc. $ (31,382 ) $ (23,322 ) $ (58,320 ) $ (38,145 ) Finance and interest expense, net 2,523 3,095 5,252 6,089 Depreciation and amortization 2,708 2,758 5,310 5,471 Taxes 81 (122 ) 129 126 EBITDA (26,070 ) (17,591 ) (47,629 ) (26,459 ) Stock-based compensation 11,547 1,113 13,270 1,843 Business acquisition costs (1) 284 — 440 230 Restructuring (2) 529 549 947 1,662 Impairment losses — — — — Net loss attributable to noncontrolling interests (1,683 ) (2,729 ) (2,674 ) (2,858 ) Other (3) 6,327 10,964 5,224 10,709 Adjusted EBITDA $ (9,066 ) $ (7,694 ) $ (30,422 ) $ (14,873 ) Expand ________________ (1) Business acquisition costs include legal cost and incremental transaction costs associated with an acquisition. (2) Restructuring includes costs for retention and severance payments related to management's decision to undertake certain actions to realign our cost structure through workforce reductions and the closure of certain facilities, businesses and product lines. (3) Other includes capital market and advisory fees related to advisors assisting with transitional activities associated with becoming a public company, changes in fair value of earn out liabilities, and foreign exchange gain/loss that are all individually insignificant for the period. also contains debt extinguishment costs of $7.8 million and $10.7 million for both the three and six months ended June 30, 2025 and June 30, 2024, respectively. Expand TABLE 3 - FREE CASH FLOW (Unaudited, in thousands) Three Months Ended Six Months Ended (dollars in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net cash used in operating activities $ (16,549 ) $ (11,149 ) $ (30,903 ) $ (19,055 ) Purchases of property and equipment (30,895 ) (16,275 ) (57,865 ) (32,325 ) Grant funding for property and equipment 20,250 3,600 38,250 14,250 Free cash flow $ (27,194 ) $ (23,824 ) $ (50,518 ) $ (37,130 ) Expand TABLE 4 - ADJUSTED EARNINGS PER SHARE (Unaudited, in thousands) Three Months Ended Six Months Ended (dollars in thousands) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net loss attributable to common stockholders $ (36,640 ) $ (28,803 ) $ (69,579 ) $ (48,633 ) Stock-based compensation 11,547 1,113 13,270 1,843 Business acquisition costs (1) 284 — 440 230 Restructuring (2) 529 549 947 1,662 Other (3) 6,327 10,964 5,224 10,709 Adjusted net loss attributable to common stockholders $ (17,953 ) $ (16,177 ) $ (49,698 ) $ (34,189 ) Adjusted net loss per common share $ (0.60 ) $ (1.29 ) $ (2.26 ) $ (2.73 ) Expand ________________ (1) Business acquisition costs include legal costs and incremental transaction costs associated with an acquisition. (2) Restructuring includes costs for retention and severance payments related to management's decision to undertake certain actions to realign our cost structure through workforce reductions and the closure of certain facilities, businesses and product lines. (3) Other includes capital market and advisory fees related to advisors assisting with transitional activities associated with becoming a public company, changes in fair value of earn out liabilities, and foreign exchange gain/loss that are all individually insignificant for the period. Other also contains debt extinguishment costs of $7.8 million for each of the three and six months ended June 30, 2025 and $10.7 million for each of the three and six months ended June 30, 2024. Expand TABLE 5 - INNOVATION SPEND (Unaudited, in thousands) Three Months Ended Years Ended December 31, (dollars in thousands) June 30, 2025 March 31, 2025 2024 2023 Capitalized research and development under section 174 $ 32,658 $ 33,599 $ 105,206 $ 46,222 Development program innovation spend (1) 5,989 5,513 22,024 20,330 Innovation spend 38,647 39,112 127,230 66,552 Less: Starlab Space Stations innovation spend 30,538 29,378 101,678 42,556 Innovation spend excluding Starlab Space Stations $ 8,109 $ 9,734 $ 25,552 $ 23,996 Innovation spend as a percentage of net sales 84.6 % 106.7 % 158.7 % 99.5 % Innovation spend excluding Starlab Space Stations as a percentage of net sales 17.8 % 26.6 % 31.9 % 35.9 % Expand ________________ (1) Development program innovation spend represents program spend on designated innovation programs within the business that is necessary for fulfillment of performance obligations on revenue generating programs. 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Miami Herald
22-05-2025
- Business
- Miami Herald
Donald Trump wants a Golden Dome; this company could win big
Israel's Iron Dome defense system is a technological marvel. The platform combines state-of-the-art radar detection with automated mobile missile defense batteries to defend the nation of just under 10 million people. It has been in operation since 2011, allowing Israel's military defenses to detect incoming missiles, assess their likely impact point, and intercept them before they can do harm. Related: Jamie Dimon sends stark warning on the economy According to Britannica, Israel's Iron Dome had an 85% interception rate during its 2012 conflict with Hamas. That number improved to 90% during the Gaza war of 2014. This week, President Donald Trump unveiled his $175 billion plan to mimic that system. The U.S. version has been dubbed the Golden Dome, in honor of Trump's favorite decorative motif. "It will be capable of intercepting missiles launched from the other side of the world," he said from the Oval Office with Defense Secretary Pete Hegseth. "Even if they're launched from space." He initiated the program via an executive order in January, and a Tuesday Politico report said the president was planning to announce the first tranche of $25 billion in funding attached to the White House budget currently making its way through Congress. President Trump has suggested that much of the work will be building the software that links existing defense systems with new ones that can track and shoot down ballistic and cruise missiles. Image source: Howard/Pool/AFP via Getty Images To bridge the link, Congress will need to agree to spend at least another $150 billion over the next two years. However, the nonpartisan Congressional Budget Office estimated the true price tag of the program at over $500 billion over two decades. While President Trump may not be able to secure enough spending for the entire project, the initial $25 billion is almost guaranteed to pass as part of the reconciliation bill. Trump wants to spend that money on space-based sensors, new interceptor technologies, and laser weapons to intercept incoming missiles. Analysts at JP Morgan, led by Seth Seifman, say that only a few defense contractors can pull this off for the president. Related: Warren Buffett delivers blunt response to social media rumor The firm points out that "these are mostly nascent capabilities, not refinements of existing systems," meaning in addition to building software for existing systems, they will have to build up these systems' capabilities. Meanwhile, the usual players, like Lockheed Martin's (LMT) Next Generation Interceptor, aren't set to debut until FY30, and Northrop Grumman's (NOC) hypersonic interceptor may not debut for another decade. L3Harris (LHX) received a special shoutout during Monday's presidential briefing, and Seifman believes the company "is well-positioned within a portion of Golden Dome that should see a lot of resources." The firm reiterated its overweight rating and $255 price target on the company. While those other companies have limitations, they, along with Raytheon (RTX) , are all expected to see at least some cut of the money. There is also speculation that software companies like SpaceX, Palantir, and Anduril will also be involved. But the note emphasizes that President Trump's dream of getting this whole deal paid for and finished in three years isn't realistic, and Trump's successor may not be inclined to finish what he started. Meaning this infusion of taxpayer dollars could be a one-time deal for this specific program. Despite its impressive success rate during the earlier years of its life, the Iron Dome did have trouble defending Israel during the October 7, 2023, Hamas attack that has precipitated the current conflict between the two sides. Hamas fired about 2,200 rockets on October 7 in just 20 minutes. The 10 Iron Dome batteries across the country could not handle the volume, resulting in some casualties attributed to rocket fire, according to Britannica. Opponents of the president's plan point out that one of the reasons Israel's Iron Dome works so well is that the system is only protecting an area that is about the same size as New Jersey. The U.S. is obviously much bigger. Another criticism is that, unlike Israel, the U.S. does not reside in missile alley. Unless the missiles are being fired from Canada, the U.S. current missile defense system is capable of handling most reasonable attacks without spending hundreds of billions of dollars. Finally, students of history may find parallels between Trump's plan and Ronald Reagan's Strategic Defense "Star Wars" Initiative. That missile defense system, designed to stop a nuclear holocaust, never got off the ground due to its $1 trillion price tag. Thankfully, the U.S. was not annihilated, despite not spending the money. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-04-2025
- Business
- Yahoo
No Good Deed Goes Unpunished at Northrop Grumman, as Cost Improvements Cut Profits in Half
Northrop Grumman (NYSE: NOC) stock is in a funk. With the company reporting earnings on Tuesday, the stock promptly tanked 12.6%. Rebounding briefly on Wednesday, Northrop then proceeded to resume sliding a day later before bouncing again on Friday. It's not hard to guess why. Year over year, Northrop Grumman suffered a significant slide in sales as two of its business segments -- its two biggest business segments, aeronautics and space -- saw sales weaken by 8% and 18%, respectively, in the first quarter. Modest gains in the company's other two, smaller businesses of defense and mission systems weren't enough to keep sales stable. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Total sales across the company fell 7%. Operating profit at the defense company declined as well. Indeed, it was cut roughly in half, down 46% at $573 million for the quarter. Operating profit margins shrank 450 basis points to just 6.1%. Earnings per share tumbled 47% to just $3.32 per share, and free cash flow ran negative to the tune of $1.8 billion. So it was pretty much miserable news all around. Most pundits focused on a single aspect of the news, the 18% fall-off in sales at the company's space business. Northrop blamed the decline on the "wind-down of work on the restricted space and Next Generation Interceptor (NGI) programs, which reduced sales by $228 million, as well as decreases for Commercial Resupply Services (CRS) missions, Space Development Agency (SDA) satellite programs and other restricted space programs." That's a pretty big list of programs responsible for the decline, though. It might have taken less time for Northrop to list space programs that were not responsible! On the plus side, at least profit margins on the sales Northrop did make in space inched higher, rising 50 basis points to 11%. Also, it's worth pointing out that despite all its troubles, Northrop still managed to earn $283 million in operating profit from its space work. That's not as much as it earned a year ago, but it's still a decent number. To my mind, therefore, Northrop's bigger issue in Q1 wasn't its space business at all, but rather its aeronautics division -- the business segment responsible for building Northrop Grumman's new B-21 stealth bomber. Northrop has been doing tremendous work on the B-21 project, which has been praised by defense market analysts and the U.S. Air Force alike for its "smooth progress" and for "coming in under budget" -- a rarity in defense contracting. Indeed, by some estimates the B-21's looking likely to cost taxpayers as much as 28% less than it was originally forecast to cost. That's great news for taxpayers. It's unfortunately turning out to be less-great news for Northrop Grumman shareholders, however, at least in the short term. Explaining why its profits got cut roughly in half last quarter, management said, "The loss [for Northrop's aeronautics unit, not for the whole company] largely relates to higher manufacturing costs ... from a process change made by the company to enable an accelerated production ramp, as well as increases in the projected cost and quantity of general procurement materials." In other words, parts and materials needed to build the B-21 cost more in the quarter, and Northrop didn't pass those on to the government. To the contrary, Northrop made efforts to drive costs down further, and accelerate production -- and ate those costs, too! So basically, Northrop Grumman took one for the team last quarter. Should its stock be punished for that? Not necessarily. Look, I've made no secret of the fact that I'm not thrilled with the valuation on Northrop Grumman stock. Like many other defense stocks, I think Northrop stock costs too much. Although its valuation has shrunk over the course of this year's slow-burn sell-off, Northrop Grumman stock still sells for nearly 1.7 times trailing sales, more than 18 times earnings, and a staggering 37 times free cash flow, according to data from S&P Global Market Intelligence. Northrop's also guiding for low-single-digit sales growth this year (just 2% or 3%), and for less profit than Wall Street wants to see (perhaps as little as $25 per share). Still, Northrop's space business remains profitable. Its defense business is working hard to ramp production on the B-21, and performing in a manner that's likely to endear it to cost-cutters in the Trump administration. If there's any fairness in the world, that should translate into additional contract wins for Northrop as it proves itself to be the rare defense contractor that knows how to deliver cutting-edge products on time and on (or even under) budget. If you liked Northrop Grumman stock before this week's sell-off, and weren't scared off by the pricey valuation then, I don't necessarily think you should sell it now that it's nearly 12% cheaper, just because it's making investments to do its job even better and more efficiently in the future. Before you buy stock in Northrop Grumman, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Northrop Grumman wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $594,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $680,390!* Now, it's worth noting Stock Advisor's total average return is 872% — a market-crushing outperformance compared to 160% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. No Good Deed Goes Unpunished at Northrop Grumman, as Cost Improvements Cut Profits in Half was originally published by The Motley Fool Sign in to access your portfolio
