Firefly Aerospace Inc. Q3 FY2025 earnings call

Key Points

• Thanked veterans and discussed Firefly's role in national security missions.
• Provided update on Alpha: Ground test firing issue led to process error correction, including increased inspections, sensor optimization, and process improvements.
• Announced SciTech acquisition closure, adding defense software capabilities. SciTech's 40+ years of classified data processing and mission ops experience bolsters Firefly's offerings.
• Third quarter business updates: Blue Ghost secured NASA contracts, Electra had simulation and mission progress, Alpha signed hypersonic test mission and Japan launch study, Eclipse had engine and launch site component progress.
• Focus on strategic growth, safety, quality, and innovation, with plans to execute growth plan and create space categories.

Firefly Aerospace Inc. has four revenue-generating hardware products: Alpha rocket, Eclipse rocket, Blue Ghost lunar lander, and Electra satellite orbiter, plus software from the SciTech acquisition. In Q3, revenue was $30.8M, with spacecraft solutions at $21.4M and launch at $9.4M. Backlog was $1.3B at quarter end. Alpha had a ground test firing issue with corrective measures implemented. Eclipse had progress in engine and launch site component builds. Blue Ghost had NASA contract awards and data sale. Electra had simulation testing and mission progress. SciTech acquisition added software capabilities.

Forward-Looking

• Full year 2025 revenue expected in range of $150M to $158M, up from prior range of $133M to $145M.
• Q4 basic and diluted weighted average shares outstanding expected to be between 155 million and 157 million shares.

Risks

• Alpha first stage booster loss during ground test due to process error. Corrective measures implemented, including increased fluid system inspections, sensor optimization, and process improvements to enhance reliability and quality.

Q: Visibility into Alpha Flight seven timing and impact on 2026 launches A: Targeted between late fourth quarter to early first quarter 2026. Continuing production and assessing post-flight data, with plans to maintain production ramp Q: SciTech integration and revenue synergies A: SciTech operates as Firefly subsidiary, with synergies in hardware software integration, especially for Golden Dome program, leveraging SciTech's software for Firefly's spacecraft and national security programs Q: SciTech growth rate and business fit A: SciTech revenue included two months in 2025 guidance. Operates as subsidiary, supports existing customers and Firefly's hardware, with synergies in onboard software and ground processing Q: International opportunities A: Focus on Japan, with study to launch Alpha from Haikido Spaceport, leveraging strategic orbital access and Asian satellite industry Q: Alpha launch failures and operational changes A: Implemented corrective actions like increased fluid system inspections, sensor optimization, process stand down, and regular exercises to enhance reliability and quality Q: Alpha events impact on Eclipse A: No impact on Eclipse timeline, as Eclipse has different test flows and subject matter experts are supporting Alpha temporarily, with commonality benefits across product lines Q: SciTech synergies with Ocula A: SciTech's algorithms applicable to Ocula for lunar observation analytics, leveraging sensor data processing for lunar missions