How does simultaneous satellite construction impact margins, and how similar are the satellites being built?

The IM-300 series satellites are a full-on production line with high commonality, especially after non-recurring costs were retired with Tranche 1, allowing for efficient production of 70 satellites. The company also has production lines for 1300 series GEO satellites and builds one-off landers and other specialized spacecraft. “The 300 series satellite is a full-on production. You hear us talking about SDA tracking layer Tranche 1, 2 and 3. Those satellites full production line, spinning off those 300 series satellites for proliferated low earth orbit constellation. We have production line for the 1300 series geosynchronous satellites, communication satellites.”

What are the remaining milestones for the IM-3 mission, and how confident is management in the Q1 '27 launch window?

The IM-3 mission is in assembly, integration, and test, with functional testing underway. Remaining milestones include engine hot fire, finalizing integrated laser sensors for precision landing, and a Delta flight readiness review in October. Management is confident in the Q1 2027 launch window. “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.”

How should analysts model cash burn in the second half, and will working capital improve?

Cash flow will see some anomalies related to share-based compensation from the Lanteris acquisition, which will decrease next year. New CLPS contracts have milestones aligned with SpaceX payments, which will balance cash. The expectation is for a more steady state in OpEx after adjustments, with free cash flow improving in H2. “We have -- as part of our transaction agreement with Lanteris, we have a slight uptick in RSUs or share-based comp that will exist through this year, through the end of this year as part of our retention agreement on certain employees as part of the transaction. Those will tick down next year, but we are seeing that increase this year, which is causing some of that OpEx growth.”

LUNR

Intuitive Machines (LUNR) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Aug 13, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Full year revenue outlook	$900 million to $1 billion high materiality	FY26	High
Full year adjusted EBITDA	positive high materiality	FY26	High
Additional bookings from ATPs	$300 million medium materiality	H2 FY26	Medium
CLPS 2 multi-award follow-on contract value	over $10 billion high materiality	next 10 years	High
Altus-1 launch window	January through March medium materiality	Q1 · FY27	High
Altus-2 through 5 deployment	2028 medium materiality	CY28	High
Capital expenditures level	elevated medium materiality	coming quarters	High
Free cash flow trend	improve medium materiality	H2 FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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%	—	—	—	—

Orderbook & backlog

Total backlog $1.8 billion Q2 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 billion YTD FY26

New bookings in Q2 $1.2 billion Q2 FY26

Highest quarterly bookings in company history.

Additional ATP bookings $300 million through H2 FY26

Anticipated as contracts are fully definitized.

IM-300 spacecraft under contract more than 70 Q2 FY26 end

Represents an unprecedented number simultaneously in production.

Total spacecraft under contract more than 80 Q2 FY26 end

CLPS 2 multi-award follow-on contract over $10 billion estimated

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

Product announcements

Product	Type	Timeline
SiriusXM-11	launch	Q2 FY26
Altus-1	launch	Q1 2027
Altus-2 through 5	expansion	2028
Nebula orbital transfer vehicle	milestone	—

Deals & partnerships

Lanteris Satellite manufacturing capabilities

Acquisition that added proven production capabilities.

KinetX Mission operations, flight dynamics, deep space precision navigation, satellite constellation management

Acquisition that added mission operations and navigation expertise.

Goonhilly Earth Station and COMSAT Ground segment communications infrastructure

Acquisition that expanded ground segment communications infrastructure.

NASA CT4 mission

Awarded the CT4 mission under the CLPS contract.

NASA CS-8 mission

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

NASA Reconfiguration 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.

SDA Tranche 1 tracking layer satellites

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

SDA Tranche 2 tracking layer satellites

Continuing production on Tranche 2 tracking layer.

SDA Tranche 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 customer Restricted 300 Series spacecraft

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

Undisclosed customer Geostationary communication satellites over $600 million 30 months

Awarded 3 geostationary communication satellites.

Capital programs

Houston production space expansion underway

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 segment underway

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 development underway

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

IM-4 Estimated at Complete (EAC) adjustment Q2 FY26

$14.7 million

Mitigation:Adjustment made to accommodate payload changes.

Increased SG&A expenses Q2 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 usage Q2 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 conversion H2 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

IM-3 Mission Launch

Q1 2027

Current In assembly, integration, and test; engine hot fire and laser sensor finalization pending.

Target Successful 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.

Find out whether LUNR delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.