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    LUNR
    Earnings call· Jun 2026(Q2 FY26)

    Intuitive Machines Q2 FY26 earnings call LUNR

    Aug 13, 2026 Source

    Executive summary

    Intuitive Machines Q2 FY26 — Record Bookings and Strategic Diversification

    Intuitive Machines delivered a strong quarter, marked by record bookings and significant revenue growth, driven by strategic acquisitions and diversification across civil, commercial, and national security space. The company is investing in production capacity and infrastructure to support its expanding backlog and transition to an integrated space prime capable of building, connecting, and operating space infrastructure. While investments led to increased near-term cash usage, management remains confident in its full-year revenue and positive adjusted EBITDA outlook.

    Highlights

    5

    • Revenue of $206 million, more than 4x the prior year.

    • Record $1.7 billion in bookings this year, including $1.2 billion in Q2.

    • Backlog of $1.8 billion, spanning civil, commercial, and national security customers.

    • Gross profit increased to $36 million, up significantly from negative $12 million in the prior year.

    • Successfully delivered 16 SDA Tranche 1 tracking layer satellites and have more than 70 IM-300 spacecraft under contract.

    Concerns

    4

    • Operating loss of $47 million, driven by higher SG&A, amortization, and a $14.7 million EAC adjustment on IM-4.

    • Adjusted EBITDA was negative $14 million.

    • Operating cash used was $60 million, reflecting strategic investments in inventory, acquisition costs, and an IM-4 milestone payment.

    • Capital expenditures of $24 million were elevated, primarily for the NSNS satellite constellation and ground segment.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full year revenue outlook
    $900 million to $1 billion
    high materiality
    High
    Full year adjusted EBITDA
    positive
    high materiality
    High
    Additional bookings from ATPs
    $300 million
    medium materiality
    Medium
    CLPS 2 multi-award follow-on contract value
    over $10 billion
    high materiality
    High
    Altus-1 launch window
    January through March
    medium materiality
    High
    Altus-2 through 5 deployment
    2028
    medium materiality
    High
    Capital expenditures level
    elevated
    medium materiality
    High
    Free cash flow trend
    improve
    medium materiality
    High

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Civil Space (Backlog)
    Represents 37% of the total $1.8 billion Q2 backlog.
    Share of total backlog: 37%
    		————
    Commercial Space (Backlog)
    Represents 49% of the total $1.8 billion Q2 backlog.
    Share of total backlog: 49%
    		————
    National Security Space (Backlog)
    Represents 14% of the total $1.8 billion Q2 backlog.
    Share of total backlog: 14%
    		————
    Civil Space (Q2 Bookings)
    Represents 20% of Q2 bookings through today.
    Share of Q2 bookings: 20%
    		————
    Commercial Space (Q2 Bookings)
    Represents 50% of Q2 bookings through today.
    Share of Q2 bookings: 50%
    		————
    National Security Space (Q2 Bookings)
    Represents 30% of Q2 bookings through today.
    Share of Q2 bookings: 30%
    		————

    Operational metrics

    18
    Revenue
    $206 millionmore than 4x the prior year
    Q2 FY26

    Driven primarily by execution across satellite manufacturing, CLPS missions, NSNS and OMES programs.

    Gross profit
    $36 millionup significantly from negative $12 million in the prior year
    Q2 FY26

    Improvement driven by growing contribution from satellite business and focus on cost and execution.

    SG&A expense
    $60 million
    Q2 FY26

    Includes share-based compensation, acquisition-related transaction and integration costs, additional headcount, and software license renewals.

    Operational loss
    $47 million
    Q2 FY26

    Driven by higher SG&A, amortization, and IM-4 EAC adjustment.

    Research and development
    $8 million
    Q2 FY26

    Investments focused on upgrading lunar landers, expanding satellite architecture, and increasing addressable market opportunities.

    Adjusted EBITDA
    negative $14 millioncompared to negative $25 million last year
    Q2 FY26

    Improvement driven by higher margin contributions from Lanteris, partially offset by IM-4 EAC adjustments, SG&A, and R&D investments.

    Operating cash used
    $60 million
    Q2 FY26

    Reflected strategic investments in long-lead inventory, acquisition and integration costs, and an IM-4 milestone payment to SpaceX.

    Capital expenditures
    $24 million
    Q2 FY26

    Primarily for NSNS satellite constellation and ground segment, including first NSNS satellite and long-lead material for satellites 2-5.

    Total cash deployment
    $84 million
    Q2 FY26

    Resulted from operating cash usage and capital expenditures.

    Cash balance
    $367 million
    Q2 FY26 end

    Includes net proceeds from at-the-market program.

    Net proceeds from ATM program (Q2)
    $235 million
    Q2 FY26

    Net proceeds from at-the-market program in the quarter.

    Total raised from ATM program
    $291 million gross
    total to date

    Total gross proceeds from at-the-market program to date at a VWAP of $26.81.

    Total shares outstanding
    228.9 million
    as of August 6

    Breakdown of Class A and Class C shares outstanding.

    Backlog conversion to 2026 revenue
    25% to 30%
    FY26

    Expected portion of Q2 backlog to convert to revenue in 2026.

    Backlog conversion to 2027 revenue
    35% to 40%
    FY27

    Expected portion of Q2 backlog to convert to revenue in 2027.

    NSNS data relay minutes (initial bid)
    0.5 million minutes
    annual

    Initial bid for operational capability, with additional PNT service revenue expected.

    Nova-C development and build time (CS-8)
    26-month
    for CS-8

    Development and build time for the CS-8 mission, aiming for production lander cadence.

    Nova-D payload capacity
    500 kilograms
    per mission

    Payload capacity to the surface of the moon for the Nova-D class lander.

    Industry KPIs

    6
    MetricValueDetails
    Total company backlog$1.8 billionUSD
    Defense program awards18 satellitesunits
    Program segment backlog37% civil space, 49% commercial space, 14% national security space%
    Unit deliveries by program16satellites
    Program margins eac charges$14.7 millionUSD
    Production capacity expansion75,000 square feetsq ft

    Orderbook & backlog

    7
    Total backlog$1.8 billionQ2 FY26 end

    Approximately 25% to 30% expected to be revenue in 2026, 35% to 40% in 2027, and the remaining thereafter.

    Total bookings this year$1.7 billionYTD FY26
    New bookings in Q2$1.2 billionQ2 FY26

    Highest quarterly bookings in company history.

    Additional ATP bookings$300 millionthrough H2 FY26

    Anticipated as contracts are fully definitized.

    IM-300 spacecraft under contractmore than 70Q2 FY26 end

    Represents an unprecedented number simultaneously in production.

    Total spacecraft under contractmore than 80Q2 FY26 end
    CLPS 2 multi-award follow-on contractover $10 billionestimated

    Expected to span 10 years with a potential 5-year option, about 4x CLPS 1.

    Product announcements

    4
    ProductTypeDetails
    SiriusXM-11launch
    Altus-1launch
    Altus-2 through 5expansion
    Nebula orbital transfer vehiclemilestone

    Deals & partnerships

    12
    LanterisSatellite manufacturing capabilities

    Acquisition that added proven production capabilities.

    KinetXMission operations, flight dynamics, deep space precision navigation, satellite constellation management

    Acquisition that added mission operations and navigation expertise.

    Goonhilly Earth Station and COMSATGround segment communications infrastructure

    Acquisition that expanded ground segment communications infrastructure.

    NASACT4 mission

    Awarded the CT4 mission under the CLPS contract.

    NASACS-8 mission

    Selected for the CS-8 mission under the CLPS contract.

    NASAReconfiguration of Gateway power and propulsion element for SR-1 Freedom Mars mission

    First contract supporting reconfiguration of the Gateway power and propulsion element for NASA's flagship Mars mission.

    SDATranche 1 tracking layer satellites

    Successfully delivered all 16 satellites supporting the SDA Tranche 1 tracking layer.

    SDATranche 2 tracking layer satellites

    Continuing production on Tranche 2 tracking layer.

    SDATranche 3 tracking layer satellites

    Expanded production line with awards for 18 satellites.

    L3Harris (for national security space customer)AMDT-3 Golden Dome satellites

    Awarded an additional 18 satellites supporting AMDT-3.

    Undisclosed customerRestricted 300 Series spacecraft

    Received Authority to Proceed (ATP) on an award for 2 restricted 300 Series spacecraft.

    Undisclosed customerGeostationary communication satellitesover $600 million30 months

    Awarded 3 geostationary communication satellites.

    Capital programs

    3
    Houston production space expansionunderway
    Spent to date: half of the expansion finished
    Start: about a year ago

    Benefit: additional 75,000 square feet of production space

    Expansion in anticipation of growth of Nova-D and to build additional landers and satellites for the lunar data relay constellation. Completing machine shop and manufacturing area now.

    NSNS satellite constellation and ground segmentunderway
    Period spend: $24 million

    Benefit: 5 satellites and ground segment upgrades

    CapEx in Q2 primarily for this program, including the first NSNS satellite and long-lead material for satellites 2 through 5. CapEx expected to remain elevated in coming quarters.

    Nova-D developmentunderway

    Benefit: 500 kilograms payload to lunar surface

    Essentially fully funded to take development to flight and land on the moon. Future investment may be needed for 3-engine configuration for 1 metric ton delivery and engine upgrades for 2-5 metric tons for CLPS 2.0.

    Risks & headwinds

    4
    IM-4 Estimated at Complete (EAC) adjustmentQ2 FY26

    $14.7 million

    Mitigation: Adjustment made to accommodate payload changes.

    Increased SG&A expensesQ2 FY26

    $60 million in Q2 FY26

    Mitigation: Includes share-based compensation, acquisition-related transaction and integration costs, additional headcount, and software license renewals. Share-based comp expected to tick down next year.

    Increased near-term cash usageQ2 FY26

    Operating cash used $60 million; CapEx $24 million; Total cash deployment $84 million in Q2 FY26

    Mitigation: Reflected strategic investments in long-lead inventory, acquisition costs, and IM-4 milestone payment. Free cash flow expected to improve in H2 FY26 as investments stabilize and milestone receivables come in.

    Timing of contract definitization and revenue conversionH2 FY26

    Primary variable for full-year revenue outlook

    Mitigation: Management is confident in execution and benefits of diversified business portfolio; timing of ATP definitization will impact revenue recognition.

    What to watch in Q3 FY26

    5

    IM-3 Mission Launch

    Q1 2027
    CurrentIn assembly, integration, and test; engine hot fire and laser sensor finalization pending.
    TargetSuccessful launch in Q1 2027.

    Why it matters

    Successful launch and soft touchdown are critical for validating lunar landing capabilities and future CLPS missions.

    We are scheduled in the launch window January through March for Mission 3 of next year on a SpaceX Falcon 9. We still have -- we are in assembly integration and test. We are doing functional testing right now on the powered up spacecraft. We have engine hot fire once it's integrated into the vehicle to do, which is where we fire the LOX/methane engine on the lander to verify that all systems are functioning through an engine ignition.

    Q&A highlights

    5

    What are the major swing factors to reach the midpoint of the revenue guidance, given the strong backlog conversion already stated?

    The opportunities to reach the midpoint of the revenue guidance include the acceleration of procurements and the timing of definitization for Authority to Proceed (ATP) contracts, which could pull revenue into the current year.

    “The opportunities to get to the middle of the range are a couple of things. One is timing of procurements and things as they come in. We see some acceleration of that, that gives us opportunities to move higher into the range. There's also those ATPs as we definitize them and the timing of that definitization will pull revenue into this year versus if they roll later, it would defer it to next year.”

    asked by Griffin Boss · answered by Stephen Altemus

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Evolution to Next-Generation Space Prime

    Intuitive Machines has evolved its strategy from individual lunar missions to building a "next-generation space prime" capable of building, connecting, and operating space infrastructure across LEO, GEO, cis-lunar, and deep space. Strategic acquisitions like Lanteris, KinetX, Goonhilly Earth Station, and COMSAT have expanded capabilities in satellite manufacturing, mission operations, and ground segment communications. This expansion has increased the company's addressable market from approximately $20 billion a few years ago to well over $150 billion across civil, commercial, and national security space sectors.

    02

    Investments in Production and Capacity

    The company is making strategic investments in inventory purchases, production capacity increases, and manufacturing efficiency initiatives. This includes adding another 75,000 square feet of production space in Houston to build additional landers and satellites for the lunar data relay constellation. These investments are designed to enable quicker response times and faster delivery to customers, supporting the rapid cadence of Moon Base missions and satellite production.

    03

    Diversified Backlog and Bookings

    Intuitive Machines achieved record bookings of $1.7 billion this year, with $1.2 billion in Q2 alone, marking the highest quarterly bookings in company history. The $1.8 billion Q2 backlog is diversified across civil (37%), commercial (49%), and national security (14%) space. This diversification reflects the success of the company's strategy to move beyond a primarily NASA and civil lunar delivery company.

    04

    Lunar Exploration and Infrastructure

    NASA awarded Intuitive Machines the CT4 and CS-8 missions, extending lunar delivery cadence to 2030, and the company expects to compete for 4 additional CLPS task orders this year, including the 10-year CLPS 2 multi-award follow-on contract. Development continues on the Altus lunar communications constellation, with Altus-1 launching in Q1 2027. Altus 2-5 are now planned for simultaneous deployment in 2028 to achieve full operational capability ahead of schedule, supporting Artemis missions.

    05

    National Security and Commercial Satellite Production

    The company successfully delivered 16 SDA Tranche 1 tracking layer satellites and is producing Tranche 2 and 3, with an additional 18 satellites awarded for AMDT-3 Golden Dome. Over 70 IM-300 spacecraft are under contract. In commercial space, 3 geostationary communication satellites were awarded for over $600 million over 30 months. The Nebula orbital transfer vehicle is also moving to full-scale development under a Phase 3 contract for a government customer.

    06

    Cash Flow and Liquidity Management

    Operating cash usage was $60 million in Q2, driven by strategic investments in long-lead inventory, acquisition costs, and an IM-4 milestone payment to SpaceX. Capital expenditures were $24 million, primarily for the NSNS constellation and ground segment. The company ended the quarter with $367 million in cash, including $235 million in net proceeds from its at-the-market program, providing liquidity for current operations.

    AI-generated summary of the company’s earnings call. Not investment advice.