Intuitive Machines(US:LUNR)2025-11-04 14:30Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $52.4 million, primarily driven by OMS, CLIPS, and NS and S [14] - Gross margin improved to $5.7 million, reflecting a continued focus on cost and execution of key programs [14] - Net loss for the quarter was $10 million, with adjusted EBITDA at negative $13.2 million, showing an improvement of $12.2 million compared to Q2 2025 [14] - Backlog at the end of Q3 was $235.9 million, with expectations to recognize approximately 20% in 2025 [15][16] Business Line Data and Key Metrics Changes - The acquisition of Lanterra Space Systems is expected to enhance Intuitive Machines' capabilities in satellite production and space infrastructure [6][12] - Lanterra has developed over 300 spacecraft, maintaining a 99.99% on-orbit availability, which is crucial for national security and commercial missions [9][10] Market Data and Key Metrics Changes - Lanterra's business breakdown is approximately 25% defense, 25% civil, and 50% commercial, with expectations for the defense portion to increase due to new awards [32] - The acquisition positions Intuitive Machines to address growing demands in secure communications and space domain awareness, particularly in national security markets [7][11] Company Strategy and Development Direction - The acquisition aims to transform Intuitive Machines into a vertically integrated space prime provider, enhancing its ability to serve national security, civil, and commercial customers [6][12] - The company plans to leverage Lanterra's production scale and reliability to expand its Lunar Data Relay constellation and commercialize NASA's Tracking and Data Relay satellite system [12][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing near-term awards despite uncertainties related to the government shutdown, expecting Q4 revenue to align with Q3 [17] - The combined company is projected to have over $850 million in revenue and positive adjusted EBITDA post-acquisition [19] Other Important Information - The acquisition is valued at $800 million, funded through $450 million in cash and $350 million in Intuitive Machines Class A common stock [6][18] - The transaction is expected to close in Q1 of the following year, subject to regulatory approvals [18] Q&A Session Summary Question: What changes has Advent made within Lanterra to improve the margin profile of their manufacturing? - Management noted that Lanterra has made positive changes and efficiencies since going private, focusing on the 300 series satellite for national security applications [23] Question: Should we frame the strategy as gaining more manufacturing capability and driving margins with service revenues post-launch? - Yes, the services model is a higher margin business, and the reliability of Lanterra's satellites will support Intuitive Machines' data networks [25][26] Question: What is the growth profile of Lanterra going forward? - The combination of Intuitive Machines and Lanterra is expected to unlock new markets and diverse revenue streams, particularly in national security [30][31] Question: Can you break down Lanterra's backlog by customer exposure? - Lanterra's backlog is approximately 25% defense, 25% civil, and 50% commercial, with expectations for the defense portion to increase [32] Question: What is the regulatory risk on closing the deal? - The acquisition will undergo a standard antitrust review, which is expected to be routine [64] Question: Will the acquisition change the timing of deployment for the data relay satellites? - There is potential to accelerate the deployment of the lunar constellation due to increased manufacturing capacity from Lanterra [70][71] Question: Is there any recurring revenue or service revenue in Lanterra's assets? - Currently, Lanterra's revenue is primarily product-based, but Intuitive Machines plans to introduce a higher margin service model [83]