Intuitive Machines, Inc. (LUNR) Earnings

Management highlights

### Strategic Acquisitions & Vertical Integration - The January 2026 acquisition of Lanteris was immediately accretive, expanding production capacity, adding capabilities in geostationary orbit (GEO), commercial communications, national security, C-band spectrum clearing, and orbital data centers, and strengthening the company's near-term revenue foundation. - The company announced a definitive agreement to acquire Goonhilly Earth Station and its U.S. subsidiary ComSat, which will add 44 deep-space qualified communication dishes across the U.K. and U.S., expand global ground station network capacity, and strengthen end-to-end space-to-ground communication capabilities for cislunar, lunar, GEO, and low-Earth orbit (LEO) missions. The acquisition is expected to close in Q3 2026, subject to regulatory approval. - These acquisitions, combined with the prior acquisition of Kinetics, build out the company's three core strategic layers: Build (spacecraft and infrastructure production), Connect (space-to-ground network), and Operate (recurring mission services). ### New Contract Wins & Bid Pipeline - The U.S. Space Force Space Systems Command selected Intuitive Machines for the 10-year Andromeda IDIQ contract, with a total ceiling value of $6.24 billion, to compete for next-generation space domain awareness capabilities in GEO. This is the first major award for the combined company post-Lanteris acquisition. - New Q1 bookings were led by the Space Development Agency (SDA) Tranche 3 Tracking Layer award with L3Harris and the company's fifth CLPS (Commercial Lunar Payload Services) lunar delivery mission, CT4. - Upcoming expected award decisions include: NASA Lunar Terrain Vehicle (LTV) crewed and uncrewed variants in late May 2026, NASA CS8 CLPS lunar lander awards in mid-June 2026, and the first 18 AMDT-3 spacecraft awards in June 2026. ### Lunar & Exploration Program Progress - IM-1300 series spacecraft progress: Sirius XM-11 is complete and ready for launch transport, and ECOSAR-25 on-orbit testing is complete, with customer handoff expected by the end of Q2 2026. - IM-3 lunar mission entered vertical assembly in Q1, on track for launch later this year, and will carry the company's first lunar data relay satellite for NASA's Near Space Network Services (NSNS) contract. - Engine testing for IM-4 was completed in Q1, satisfying requirements for both IM-4 and the newly awarded IM-5 CT4 mission, demonstrating compounding flight heritage and shared system efficiencies across the lunar lander portfolio. - NASA's Project Ignition has shifted from individual lunar missions to sustained lunar operations, creating demand for the company's integrated infrastructure model. The CLPS 1.0 contract ceiling was increased from $2.6 billion to $4.2 billion, and a new $6 billion CLPS 2.0 IDIQ was added for heavier cargo deliveries after 2028, aligned with the company's scalable Nova lander product line. - The company has aligned its LTV proposal with NASA's revised phased procurement strategy, moving from a single 10-year demonstration rover to smaller, shorter-duration initial crewed and uncrewed vehicles for the lunar South Pole, with options for follow-on larger capability vehicles. - The company is supporting NASA's plan to repurpose the Gateway power and propulsion element (the most powerful solar electric propulsion spacecraft ever built) as the core of the SR-1 Freedom Mars mission, expanding the Build segment's role in deep space exploration. ### Core Market Growth - The company is investing in enhanced digital processing capabilities for the 1300 series satellite line to enable on-orbit reconfiguration, expanding into the growing software-defined satellite market. - National security space progress: The company is delivering SDA Tranche 1 satellites, producing Tranche 2, and was awarded TRONCS III in Q1. It also received authority to proceed in final negotiations for two additional undisclosed customer satellites.

Guidance

- Management maintained full-year 2026 revenue guidance at a range of $900 million to $1 billion, with a significant portion of this expected revenue already covered by existing backlog, providing strong visibility into full-year results. - Management continues to expect full-year 2026 adjusted EBITDA to be positive, reflecting the improving margin profile of the combined business as revenue scales and operational efficiencies are realized. - Quarterly SG&A is expected to normalize materially in coming quarters as non-recurring Lanteris acquisition-related integration and transaction costs wind down. - Free cash flow is expected to normalize throughout 2026 as the company moves past one-time acquisition-related costs, and new contract awards start contributing cash inflows. - Capital expenditures are expected to grow throughout 2026 and beyond as the company invests in building out its planned five-satellite lunar data relay constellation and associated ground segment.

Segment performance

Intuitive Machines reports as a single combined segment as of Q1 2026. Record Q1 2026 GAAP revenue was $186.7 million, approximately 3x year-over-year Q1 2025 revenue. This figure excludes $13 million in revenue from the January 13, 2026 Lanteris acquisition that was not included in reporting. Gross profit increased to $30.1 million from $6.7 million in the prior year quarter, and adjusted EBITDA turned positive at $2.7 million, compared to negative $6.6 million in Q1 2025. Net operating loss for the quarter was $39.2 million, versus a $10.1 million loss in the prior year, driven by one-time acquisition-related costs. Revenue contribution by customer type: 35% commercial, 38% civil (primarily NASA), and 27% national security space. The company exited the quarter with a record total backlog of $1.1 billion, supported by more than $400 million in new Q1 bookings. 60-65% of the current backlog is expected to convert to revenue in 2026, with the remaining 35-40% converting to revenue in 2027 and beyond. SG&A expense was $50.7 million for the quarter, which included $26.3 million in non-recurring acquisition-related transaction, integration, and share-based compensation costs tied to the Lanteris acquisition. R&D spending was $5.6 million, focused on expanding software-defined satellite architecture. Operating cash used was $54.8 million, capital expenditures were $9.9 million, resulting in a negative free cash flow of $64.6 million, which included significant one-time acquisition and pre-investment costs. The company ended the quarter with $232 million in cash on hand.

Risks & headwinds

No explicit material risks or operational failures were discussed during the Q1 2026 earnings call. All forward-looking statements were accompanied by a standard disclaimer that actual results could differ materially from expectations due to factors outlined in the company's SEC filings, with no specific risks called out by management during prepared remarks or the Q&A session.

Analyst Q&A

• Q: Can you share the development status of the Nebula Orbital Transfer Vehicle (OTV), and do you see it supporting future Andromeda task orders for GEO operations? /

  A: The Nebula OTV has completed its Critical Design Review (CDR) with the customer, and the company is awaiting phase three full-scale development and flight authorization. It is a high-thrust, cryogenic propulsive stage capable of operating out to 2 million kilometers, and management expects multiple Nebula units to be produced in the future to support national security missions in GEO and cislunar space, including Andromeda task orders. (212 characters)

• Q: What capabilities made Intuitive Machines competitive for the Andromeda IDIQ award, and how does the Goonhilly acquisition improve your ability to deliver end-to-end space data services for the NSNS contract? /

  A: The combined company's differentiated strengths included Kinetics' precision orbit determination and trajectory management, Lanteris' reliable 1300 series satellite bus and production supply chain, and existing experience with precision lunar trajectories and space robotics. Goonhilly adds 44 deep-space capable dishes, in-house expertise to build and operate a global multi-customer ground network, and access to European Space Agency contracts via its U.K. base, perfectly complementing the company's existing U.S.-focused NSNS capabilities. (381 characters)

• Q: What is the timeline and competitive landscape for NASA's restructured LTV program, and what production capacity do you have to meet expected growing lunar lander demand from Project Ignition? /

  A: NASA restructured the LTV program to smaller 1-year initial vehicles, and proposals were submitted in late April, with award expected on May 22, 2026. The competitive landscape remains unchanged: only the three original pre-selected vendors are bidding, with no new entrants added. To meet growing demand, the company has already expanded Houston production capacity, and Lanteris' 600,000 square foot California production facility allows parallel production of multiple landers on 24-month cycles, with volume-driven supply chain efficiencies supporting faster delivery. (398 characters)

• Q: Beyond the existing NSNS contract, what additional synergies or opportunities does the Goonhilly acquisition create, and what is the company's M&A roadmap going forward? /

  A: Goonhilly's existing dishes already support LEO and GEO missions in addition to deep space, making it a key asset for upcoming full-service bids like the TDRS (Tracking Data Relay Satellite) contract, and it serves as a bridge between the company's U.S. business and European partnership opportunities like the ESA Moonlight program. Goonhilly currently generates ~$14 million in annual revenue, with significant expected growth tied to the company's expanding cislunar market position. Management will continue to pursue opportunistic M&A aligned with its strategy, particularly potential capabilities to support the emerging orbital data center market as that opportunity crystallizes. (410 characters)

• Q: Will the agile spacecraft capability developed for national security programs also translate to commercial opportunities? /

  A: High maneuverability is in high demand for national security GEO satellite programs, but it also leverages the company's existing capability in on-orbit satellite servicing (OSAM), where it previously built the satellite bus for an OSAM mission. As the commercial satellite servicing market matures, this same agile spacecraft technology will position the company for commercial entry into this segment, creating dual-use value from the development investment. (274 characters)