Q1 2024 Terran Orbital Corp Earnings Call Transcript
Key Points
- Terran Orbital Corp reported a significant backlog of $400 million, indicating strong future revenues primarily from Lockheed Martin over the next 18-24 months.
- The company has successfully delivered 10 satellites for the Transport Layer Tranche 0 to Lockheed Martin and the Space Development Agency in just 26 months from contract award, showcasing improved production speed.
- Terran Orbital Corp is expanding its manufacturing capabilities, with a new 94,000 square foot facility expected to open by Q1 2025, enhancing their capacity to meet growing demand.
- The company has over $25 billion of identified pipeline across 140 programs, demonstrating potential for substantial growth and diversification in customer base and market segments.
- Terran Orbital Corp has strengthened its vertical integration, controlling more of its supply chain, which is crucial for maintaining schedule and cost efficiencies in satellite manufacturing.
- Revenue for Q1 2024 was down 3% year-over-year, primarily due to unfavorable EAC adjustments on a single program caused by subcontractor challenges.
- The company reported a gross loss of $6.2 million for Q1 2024, compared to a gross loss of $1.4 million in the previous year, with adjusted gross loss worsening due to subcontractor issues.
- Terran Orbital Corp is experiencing delays in some programs, which could impact short-term revenue recognition and cash flow.
- The strategic review process initiated due to an acquisition proposal from Lockheed Martin is still ongoing, creating uncertainty about the company's future direction.
- Despite efforts to become EBITDA positive, the company faced a negative adjusted EBITDA of $28.2 million in Q1 2024, indicating ongoing profitability challenges.
Welcome to the Terran Orbital Q1 2024 earnings call. My name is Carla, and I'll be coordinating your call today. (Operator Instructions)
I turn the call over to John Seigmann, Senior Vice President of Corporate Development Terran Orbital to begin, please go ahead.
Thank you, Carla. Good morning, everyone, and thank you for joining Terran Orbital's first-quarter 2024 earnings call. With me this morning are Marc Bell, Co-Founder, Chairman and Chief Executive Officer of Terran Orbital Corporation; Mathieu Riffel, Acting Chief Financial Officer, Corporate Controller, Terran Orbital
Marc will provide a business update and highlights for the past quarter, and then Matt will review the quarterly results.
During today's call, we will make certain forward-looking statements. These statements are based on our current expectations and assumptions and as a result are subject to risks and uncertainties. Many factors could cause actual events to differ
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
