York Space Systems Inc. 2026 Q2 Earnings Call

Chris, please go ahead. Hello, everyone, and welcome to York Space Systems' second quarter 2026 earnings call.

With me on the line are Dirk Wallinger, our CEO, and Brian Frantz, our Chief Accounting Officer and interim CFO. Please note that our earnings release is available at ir.yorkspacesystems.com. In addition, we have posted an earnings presentation to accompany our prepared remarks on the same website. Lastly, after this call, we will post a transcript of our prepared remarks and an audio replay of this call. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Thursday, August 13th, 2026, and have not been updated subsequent to this call. During this call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release.

We will also make statements that are considered forward-looking, including those related to our 2026 outlook, future revenue and growth prospects, anticipated award times, pipeline, award opportunities, backlog, M&A strategy, inventory building, and the benefits of our acquisitions. Listeners are cautioned that our forward-looking statements involve certain assumptions and are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors and other discussions included in our 2025 annual report on Form 10-K, the 2026 Form 10-Qs, and our other filings with the SEC. After the completion of our prepared remarks, we will open the call for questions. Now, I'll turn the call over to Dirk.

Thanks, Chris. Hello and welcome to York's second quarter 2026 earnings call. I appreciate you taking the time to join us. Before we get into the highlights from the quarter, I want to take a moment to introduce Brian Frantz, who'll be stepping into the role of interim Chief Financial Officer at York. Brian joined us as a chief accounting officer and played a central role in our transition to a public company with direct responsibilities for financial reporting, internal controls, and SEC compliance. Brian brings more than three decades of financial leadership experience across public and private companies, including prior service as CFO of RE/MAX International and Principal Financial Officer of Intrepid Potash. You'll hear from Brian on the quarter's financials a bit later in the call. Q2 was another strong quarter of execution for York.

We launched 21 more satellites, added new customers, and expanded our portfolio of mission capabilities. Revenue for the quarter was $92.5 million, up 10% year-over-year. Our backlog stood at $592 million, and potential unawarded contracts reached $1.85 billion. Our identified pipeline now exceeds $11.5 billion. York's earnings deck describes these metrics, including potential unawarded contracts, in more detail. In the first half of 2026, we secured eight contract wins at an 88% win rate on our proposals. We added four more contracts in this quarter, with two task order wins and another IDIQ add in the last 45 days alone, a reflection of both the breadth of our capabilities and the confidence customers place in our performance on orbit. We have expanded our national security customer base, including three new IDIQ vehicles, expanding our contracts to cover 10 different mission areas.

Those IDIQs have generated two delivery orders, an early signal of how quickly today's onboarding contracts are now converting into real mission work. A few of these wins are worth calling out in more detail. In July, York was awarded a task order contract on one of our highly selective IDIQs to deliver military system capabilities built on commercial technologies. That award reinforces our position as one of the only providers with an on-orbit performance record for operational systems and the commercial manufacturing scale required to support the resilient multi-vendor supply base the government is asking for. In early August, we were awarded another IDIQ task order for an on-orbit demonstration. The rapid conversion from IDIQ selection to multiple funded delivery order contracts in a matter of weeks reflects real near-term demand for York's proven in-production spacecraft as the government scales their space-based architecture.

We are encouraged that the government remains committed to a resilient supply base for their architectures, which strengthens the industrial base and delivers better outcomes for the war fighter. Our proven performance in orbit and ability to deliver at scale for operational systems is transitioning well into contract orders for next-generation systems that are aligned with current budget allocations. Resilient, assured, or jam-resistant communications are increasingly becoming an in-theater need, and that need is only expected to grow as unmanned systems play a more decisive role in modern conflict. Their effectiveness and survivability depend directly on assured, resilient communications across every phase of the mission. In an environment where air superiority is denied, space will be the enabling network for those communications, and by extension, the foundation of the defense architectures that will define the next era of war fighting.

The character of conflict has changed, and the architectures underneath it have to change with it. Whoever controls the assured communication systems controls the fight. That is why jam-resistant communications and alternative PNT matter, and it's why York is investing where we are. We are building for a war fighter who will operate across manned and unmanned formations, and we intend to be the prime that delivers the space-based infrastructure they will count on to win. The changing character of conflict leads directly into our acquisition of ALL.SPACE, completed in July. ALL.SPACE, a leader in assured communications terminals, extends our reach into adjacent markets and positions us to capture the accelerating demand for unmanned systems across every domain. ALL.SPACE also brings established contracts with the Army and Navy with momentum already carrying into a new DIU contract and $6 million follow-on order for 23 additional terminals from the Navy.

ALL.SPACE and our other subsidiaries are expected to contribute roughly 10%-15% of 2026 revenue. In July, we were selected by the U.S. Space Force for the NITE-STAR IDIQ, further extending our mission portfolio capabilities. NITE-STAR positions us to compete for task orders, integrating our satellite platforms with the global ground network operated by ATLAS Space Operations, a wholly owned subsidiary of York. Our expanding portfolio of mission types and capabilities positions York to compete for a broader set of opportunities. Roughly 23% of our contracts sit in network communications, and the remaining 77% address non-communication mission capabilities like AMTI, advanced fire control, remote proximity operations, missile warning, missile track, and more. That breadth aligns directly with where defense budgets are planned and enables York to compete across the full range of programs, shaping the next generation of defense.

Shifting to the commercial side, we continue to see commercial opportunities increasing following our constellation win earlier this year, and anticipate commercial systems becoming a larger portion of our revenue potential and growth trajectory. Our demonstrated ability to deliver at scale at price points unmatched by competitors continue to make us an attractive partner in the commercial sector. Shifting to execution. This quarter, York became the first performer to complete its Tranche 1 Transport Layer deliveries, launching a second dedicated Falcon 9 that put 21 York-built satellites on orbit and bringing York's program record to 42 for 42, ahead of every other awardee. That's a track record customers see, and it's showing up directly in awards we're winning today. To date, York has put 55 satellites on orbit across eight launches, and today we are actively operating five unique mission sets and three constellations.

That combination of scale and mission breadth positions York as the new space industry leader by number of active missions, range of capabilities on orbit, and military systems operating in space today. Additional highlights from the quarter include our Nemesis mission, which cleared its Delta Critical Design Review and currently remains on track for delivery in Q4. Nemesis extends York's prime integration model into GEO in support of space domain awareness missions and reinforces our ability to prime, integrate, and deliver across orbital regimes. On the Dragoon program, we completed our initial mission objectives in a matter of months, demonstrating York's ability to deliver operationally relevant tactical communications at speed and scale. We completed our acquisition of Solestial, a leading provider of next-generation space solar technology.

Solestial secures domestic control of a critical element of our supply chain, currently controlled by China, reduces geopolitical exposure across our manufacturing base, and positions us to leverage advanced solar capabilities as a differentiator in future spacecraft designs. Before I turn it over to Brian to review the financials in depth, I want to speak briefly to what we're seeing across the broader U.S. government acquisition landscape and what it means for York's growth trajectory. Through 2026 and increasingly in Q2, we've observed a meaningful shift in how the U.S. government is acquiring spacecraft systems. Moving away from a rapid succession of larger RFPs to an IDIQ approach that is slow to start but often faster to accelerate task orders later. This approach has a longer cycle to award the IDIQs initially.

But once IDIQs are awarded, task orders can be awarded in more rapid succession without the need for follow-on competitive award cycles. They generally pursue smaller on-ramp task order contracts to start but can lead to multi-billion dollar opportunities later for true operational systems. Highly selective IDIQs are more desirable as the budget size and smaller vendor pool represent significant revenue potential for awardees on discriminating IDIQs. York Space Systems has been awarded six contracts under this new approach in 2026 alone, and we view them as significant drivers of growth into 2027 as the follow-on programs advance. York Space Systems's contract wins range across very large swaths of capabilities that align well with the current budget allocations we are seeing. This shift is changing our expectations of award timing. As a result, we are revising our full year 2026 revenue guidance. Brian will walk through the specifics in a moment.