On November 14, 2023, Terran Orbital Corp (LLAP, Financial) released its 8-K filing, announcing its financial results for the third quarter of 2023. The company, a leading manufacturer of satellite products for the aerospace and defense industries, reported a record-breaking revenue of $43.9 million for the quarter, which represents a significant 58% increase year-over-year. This growth is attributed to the progress in fulfilling customer contracts and the impact of recent contract wins and modifications.
Financial Performance Highlights
The company's gross profit for the quarter stood at $9.7 million, a substantial rise from the $37 thousand reported in the third quarter of 2022. The gross margin also showed remarkable improvement, reaching 22.1% compared to the previous year's 0.1%. Despite these gains, Terran Orbital Corp (LLAP, Financial) experienced a net loss of $26.4 million, which, while still significant, is an improvement from the net loss of $27.4 million in the same quarter of the previous year.
Adjusted EBITDA was reported at negative $13.0 million for Q3 2023, slightly better than the negative $13.9 million from Q3 2022. The company's capital expenditures totaled $6.1 million for the quarter and $18.5 million for the nine months ending September 30, 2023.
Balance Sheet and Liquidity
As of September 30, 2023, Terran Orbital Corp (LLAP, Financial) had a cash balance of $38.7 million and gross debt obligations totaling approximately $313.0 million. Notably, after the end of the quarter, the cash balance increased to over $70 million as of October 31, 2023.
Operational and Strategic Developments
The company has introduced seven new standard bus designs and launched a new Responsive Space Initiative, aiming to deliver standard buses within 30 days and integrated payloads in 60 days. This initiative is part of Terran Orbital Corp (LLAP, Financial)'s strategy to control its supply chain and enhance its capabilities through investments in machinery, equipment, and automation.
"I am pleased to report our company’s continued growth in revenue, which highlights the confidence and trust our customers have in us. In addition, we are seeing improvements in our gross profit and adjusted gross profit margins," said Marc Bell, Co-Founder, Chairman, and Chief Executive Officer of Terran Orbital.
Looking ahead, Terran Orbital Corp (LLAP, Financial) has revised its 2023 revenue forecast to exceed $130 million, down from the previous expectation of over $250 million, primarily due to delays related to its contract with Rivada. The company expects its adjusted gross profit margin to align with its year-end targets and anticipates gradual improvements in future periods.
For more detailed information on Terran Orbital Corp (LLAP, Financial)'s financial results, including the full balance sheet and statements of operations, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from Terran Orbital Corp for further details.
