Intuitive Machines, Inc. Class A Common Stock 2026 Q2 Earnings Call

Go ahead. Good morning. Welcome to the Intuitive Machines second quarter 2026 earnings call.

Chief Executive Officer, Steve Altemus, and Chief Financial Officer, Pete McGrath, are leading the call today. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to the future of our business, the economy, and other events. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. These factors are described under forward-looking statements in the company's earnings press release and the company's most recent 10-K and 10-Q filed with the SEC. We do not undertake any obligation to update forward-looking statements. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in the applicable SEC rules and regulations.

Reconciliations to the company's GAAP measures are included in the earnings release filed on Form 8-K. Finally, we posted an earnings call presentation to our website, which provides additional context on our operational and financial performance. You can find this presentation on our investor relations page at www.intuitivemachines.com/investors. Now I'll turn the call over to Steve Altemus.

Good morning, and thank you for joining us. We delivered a strong quarter, highlighted by $206 million of revenue, more than four times the prior year, exited the quarter with approximately $1.8 billion of backlog and have positioned the company for the next phase of growth. Our backlog now spans civil, commercial, and national security customers, and we have more than 80 spacecraft under contract. Based on that visibility, we are reaffirming and remain confident in our $900 million to $1 billion revenue outlook and our expectation for positive adjusted EBITDA for the full year. Two years ago, Intuitive Machines returned America to the Moon for the first time since Apollo. Last year, we became the first company to land a second time at the lunar south pole. Those missions demonstrated our ability to deliver complex space missions that advanced the state of lunar exploration.

That was never our ultimate destination. It was the foundation for building the next generation Space Prime, a fundamentally different company. Our strategy has evolved alongside the market. As our customers increase their presence across LEO, GEO, cislunar, and deep space, their need is now for more than individual missions alone. We believe the next era of space will require a next generation Space Prime capable of building spacecraft, connecting them through resilient networks, and operating the resulting infrastructure across the space ecosystem. Over the past 18 months, every strategic decision we have made has been focused on building that next generation Space Prime. The Lanteris acquisition transformed Intuitive Machines to one of the nation's leading satellite manufacturers, adding proven production capabilities. The KinetX acquisition added mission operations, flight dynamics, deep space precision navigation, and satellite constellation management, allowing us to support customers throughout the operational lives of their missions.

Our most recent acquisition of Goonhilly Earth Station and COMSAT expanded our ground segment communications infrastructure with globally recognized deep space ground systems that strengthen our ability to deliver resilient communications and navigation services from Earth orbit to cislunar space and beyond. With these acquisitions, Intuitive Machines is an integrated aerospace company capable of building, connecting, and operating a system of systems as space infrastructure. We believe that integration is becoming increasingly valuable as customers move beyond individual spacecraft toward complete operational systems. Combined with our existing leadership in lunar transportation and infrastructure, we believe these capabilities have expanded our addressable market from roughly $20 billion only a few years ago to well over $150 billion across civil, commercial, and national security space sectors. As part of our strategy, we are investing today to establish capabilities that we believe will generate value over many years.

This quarter, those investments include inventory purchases, production capacity increases, and manufacturing efficiency initiatives. Customers are increasingly seeking greater production volume and faster delivery. Companies can no longer rely solely on the traditional model of waiting until a procurement or contract is awarded to begin preparing. Our investments position us to respond more quickly and deliver on our customers' timelines. NASA Moon Base is an example, an excellent example. While we begin by building and landing lunar delivery systems for NASA under the CLPS contract, we've since expanded our capability by providing communications and navigation systems for NASA and other government customers under the Near Space Network Services contract. We continue to evolve towards production-ready landing systems and satellites in support of the rapid cadence of Moon Base missions required.

Across manufacturing, communications, and mission operations, these investments support our objective of delivering and operating space infrastructure and expanding long-term durable operational revenue. The effect of these investments can be seen in the recent uptick in bookings this quarter. As of this call, Intuitive Machines generated $1.7 billion in bookings this year, including $1.2 billion in new bookings in quarter 2 through today. This marks the highest quarterly bookings in company history and validates our strategy by expanding the infrastructure base we are building for the future. Quarter 2 bookings also include partial awards with authority to proceed. We anticipate these ATPs will contribute an additional $300 million in bookings through the second half of the year as the contracts are fully definitized.

Our diversification strategy and capability investments have expanded our total addressable market, moving us beyond a primarily NASA and civil lunar delivery company to one able to address the broader space ecosystem. This quarter's bookings reflect that diversification. Our $1.8 billion Q2 backlog is split approximately 37% civil space, 49% commercial space, and 14% national security space. Q2 bookings through today were composed of approximately 20% civil, 50% commercial, and 30% national security space, highlighting our continued diversification. As you've heard me talk about on previous earnings calls, our strategy is organized around three integrated pillars: build, connect, and operate space infrastructure. Let me walk through each. The first pillar, build, begins with the spacecraft and physical infrastructure that make our broader strategy possible.

Today, we are applying our engineering and production discipline across lunar landers, government and commercial communication satellites, national security spacecraft, orbital transfer vehicles, and deep space systems. Beginning with our civil portfolio, NASA continues to advance its long-term vision for sustained lunar exploration through the Moon Base initiative. Earlier this year, we were awarded the CT-4 mission, and this quarter, NASA selected Intuitive Machines for the CS-8 mission, extending our lunar delivery cadence beyond 2028 into 2030. These awards represent our fifth and sixth missions under the CLPS contract. Looking ahead, we expect to compete for four additional CLPS task order opportunities this year, including the 10-year CLPS 2 multi-award follow-on contract. These opportunities represent far more than individual delivery missions. They reinforce the transition from demonstration missions toward higher cadence, repeatable, and reliable lunar transportation, supporting long-term operations on the Moon.

We also began work with NASA under our first contract supporting the reconfiguration of the gateway power and propulsion element for NASA's flagship Mars mission, SR-1 Freedom. This program demonstrates how spacecraft developed for lunar exploration can be adapted for entirely new missions, in this case, a deep space Mars mission, extending the value of existing technologies while reducing development risk for future exploration architectures. At the same time, we continue operating the Lunar Reconnaissance Orbiter Camera and ShadowCam programs, providing mission operations, data collection, and lunar surface analysis. Next week, we'll fly over and image the impact area of a recently disposed upper stage on the surface of the Moon. As lunar activity accelerates, we see significant opportunities to expand these capabilities through future lunar surveying, mapping, and data repository services supporting NASA's Artemis program and Moon Base initiatives. Now moving to national security space.

This quarter, we successfully delivered all 16 satellites supporting the SDA Tranche 1 tracking layer while continuing production on Tranche 2 tracking layer. Earlier this year, we expanded that production line with awards for the SDA Tranche 3 tracking layer, representing another 18 satellites. As of this earnings call, we were awarded an additional 18 satellites supporting AMDT-3, part of the nation's Golden Dome architecture. In addition, we received ATP on an award for two restricted 300 series spacecraft to an undisclosed customer. With these recent awards, we have more than 70 IM 300 spacecraft under contract today. This represents an unprecedented number of IM 300 series spacecraft simultaneously in production. This month, we also received authority to proceed for continued development of our Nebula orbital transfer vehicle on a phase III contract for a government customer.

This award will take the OTV design from paper to full-scale spacecraft development, integration, and testing, all the way through flight. Collectively, these programs demonstrate our ability to manufacture spacecraft at production scale while supporting some of the nation's highest priority national security missions. In commercial space, we continue to see strong demand for our flight-proven IM 1300 series platform. in Q2, we were awarded three geostationary communication satellites from an undisclosed customer, valued at over $600 million over the next 30 months. Sirius XM-11 also launched and deployed during the quarter, and we are on track to hand that spacecraft over to the customer later this month, continuing the long heritage of one of the industry's most reliable commercial communication satellites. Beyond traditional communication satellites, we believe the same high-power spacecraft architecture positions us well for the emerging commercial orbital data center market.