Group 1 - Iridium Communications Inc. and General Dynamics Mission Systems received a $491.6 million contract modification from the Space Development Agency for the Ground Management and Integration program, with Iridium's share valued at $239 million over five years [1][2] - The new contract focuses on developing an advanced ground system compatible with SDA's Tranche 2 constellation, including services such as engineering design, analysis, testing, and maintenance [2] - Iridium's engineering and support business is benefiting from U.S. government contracts, including a new five-year contract worth nearly $94 million, expected to provide stable revenue through 2029 [3] Group 2 - Iridium's third-quarter 2024 revenues reached $212.8 million, an 8% increase year over year, with engineering and support revenues surging 22% to $30.7 million [3] - Despite strong performance in engineering and support, weak demand trends in the Equipment business are expected to lead to lower equipment sales in 2024 [4] - Iridium currently holds a Zacks Rank 4 (Sell), with shares down 24% over the past year compared to a 3.4% growth in the sub-industry [5]
Iridium & GDMS Secure $491.6M SDA Contract: IRDM Stock to Gain?