Intuitive Machines, Inc. Q2 FY2025 earnings call

• Intuitive Machines has completed 2 lunar missions in 12 months and was selected for NASA's Near Space Network services contract. • Acquired KinetX, a company with expertise in deep space navigation and constellation management. • Vertically integrated satellite manufacturing in-house to improve cost efficiency and expand market opportunities. • Progress on core programs: IM-3 has completed navigation sensor procurements and is in performance testing; IM-4 has completed procurements and initiated manufacturing; received a $9.8 million Phase 2 award for orbital transfer vehicle design; executing on Stealth nuclear-powered satellite development; candidacy for Lunar Terrain Vehicle contract remains active; working on Earth reentry vehicle under Texas Space Commission award; advocating for NASA's OSAM-1 mission. • Formed strategic partnership with Goonhilly Earth Station to explore commercialization of deep space communication sites.

Q2 revenue was $50.3 million, up 21% year-over-year, driven primarily by CLPS, LTVS and SNS execution. OMS revenue was $19.6 million. Q2 revenue included an EAC adjustment on IM-3, reducing revenue by $10.1 million and increasing costs by $9.7 million. Gross margin was negative $11.8 million, an improvement vs. negative $16.1 million in Q2 2024. Operating loss was $28.6 million. Ended Q2 with contracted backlog of $256.9 million. Year-to-date revenue is $113.3 million.

• Full-year guidance is near the low end of prior outlook but expects midpoint with additional opportunities in the latter part of the year, targeting revenue near the midpoint of prior outlook ($275 million). • Expect positive adjusted EBITDA in 2026. • Line of sight to significant procurements in the second half of the year for organic growth and inorganic opportunities to execute on vision.

• Execution risks on contracts, including potential delays or issues in mission performance. • Supply chain challenges that could impact satellite manufacturing and other program timelines. • Competition in the space market for contracts and customers.

Q: Thoughts on Mars mission timing and value compared to cross missions?

A: Stephen Altemus said NASA's budget has funds for Mars infrastructure work, and Intuitive Machines is working on precursor missions around the moon for Mars Data Relay.

Q: Satellite production in-house and other customers?

A: Stephen Altemus said they see opportunity with other customers using a capable satellite bus, and they're positioned to compete for TDRS replacement service.

Q: Expectation on EBITDA in Q4?

A: Peter McGrath said expecting EBITDA positive in 2026, not at end of 2025.

Q: Backlog direction at end of year?

A: Peter McGrath said expecting to add backlog from CLPS award, OSAM revenue increase, LTV procurement, and Mars Data Relay proposal.

Q: CLPS contract and IM-3/4 progress?

A: Stephen Altemus said confident in system upgrades for IM-3 and 4, positioning for CLPS CT4 award.

Q: Golden Dome and spacecraft platforms?

A: Stephen Altemus said near space network and data relay constellation are applicable to Golden Dome architecture.

Q: Global front and space leadership?

A: Stephen Altemus said working with global ground segment network and commercializing Madrid Space Communications Complex for deep space network.

Q: Rationale for vertical integration on NSNS?

A: Stephen Altemus said satellite buses for low earth orbit don't fit Cislunar market, and vertical integration allows cost efficiency and expansion of capabilities.

Q: Pushout on IM-2 success payments?

A: Stephen Altemus said it's due to negotiations and crossing quarter boundaries, confident in Q3 receipt.

Q: KinetX constellation experience?

A: Stephen Altemus said KinetX has constellation management experience on missions like OSIRIS-REx and has proprietary software for deep space navigation.

Q: NSNS long-tail revenue and margin opportunity?

A: Stephen Altemus said NSNS is a sole award with a wide moat, with operational task orders expected once hardware is in place around the moon.

Q: 3-pillar approach and long-term emphasis?

A: Stephen Altemus said data services move to the forefront as the long-term sustainable infrastructure service provider.