Intuitive Machines, Inc. Q4 FY2024 earnings call

• Intuitive Machines reported record fiscal year revenue of $228 million in 2024, exceeding guidance midpoint, with Q4 revenue at $54.7 million.
• Strong financial position with cash balance of $385 million as of March 10th, 2025, following warrant exercises.
• Positioned well for federal government changes in acquisition of technology-based business services, leveraging private sector innovation.
• Three pillars of commercialization: delivery services, data transmission services, and infrastructure as a service.
• IM-2 mission had advancements in space communications, navigation, and autonomy, though landing didn't go as planned but payload operations were accelerated.
• Plans for IM-3 mission including NASA and commercial payload delivery near moon's equator, deploying first data relay satellite under Near Space Network contract.
• Appointed James Frelk as Senior Vice President of Data Services to expand data transmission services outside Near Space Network contract.
• Finalized Phase 2 contract with government customer for orbital transfer vehicle using lunar lander core technology.

In the fourth quarter, Intuitive Machines reported revenue of $54.7 million. The full year revenue was a record $228 million, exceeding the midpoint of previous guidance. Q4 revenue was primarily driven by CLPS, OMES, and LTVS execution. OMES revenue in Q4 was $30 million, down about $4 million from Q3. Gross profit for the quarter was $0.7 million, and operating loss was $13.4 million. The company ended 2024 with a record cash balance of $207.6 million, and as of March 10th, cash balance stood at $385 million after warrant exercises. Contracted backlog was $328.3 million at the end of the fourth quarter.

2025 revenue is guided to be in the range of $250 million to $300 million. The company aims for a positive run rate adjusted EBITDA by the fourth quarter of 2025 and a positive adjusted EBITDA by 2026. It is expected to recognize 60% to 65% of the backlog in 2025, 15% to 20% in 2026, with the remaining recognized thereafter. There are opportunities like two CLPS bids in 2025 and potential upside from LTVS award depending on market and congressional funding directions.

• Space missions inherently carry risk of subsystem faults.
• Federal government changes and uncertainty at NASA could impact contract awards and program execution.

Q: Can you give a framework of where Intuitive Machines could be headed three to five years out?

A: We're moving into data services business, expanding in Near Space Network regime from low earth orbit to geosynchronous orbit out to cislunar space, doing it in reverse order from lunar space backwards.

Q: Talk about the orbital terrain vehicle and government contract?

A: The nebula is a derivative of the Nova-C Science Autonomous Robotic Lander, a cryogenic stage with proprietary propulsion system, used to deliver satellites to varying locations in cislunar space under a commercial contract as a subcontractor for a government customer.

Q: Regarding 2026 adjusted EBITDA positive, talk about elements of guidance?

A: We've stabilized G&A spend rate, which will help towards EBITDA positive case as we continue to grow on profits and margin side.

Q: Has data collected during IM-2 impacted conversations with NASA or plans for upsized Nova-D lander?

A: We're in design cycle for Nova-D, doing hot wash associated with IM-2, don't expect much change to design coming out of hot wash; NASA put out RFP for VIPER, expecting down select shortly but limited ability to commercialize it.

Q: Thoughts on deploying cash and M&A pipeline?

A: Continuing process of review for opportunistic M&A to add capabilities, vertically integrate, and diversify revenue stream; also investing in technology innovations like e-pump project for Nova-D propulsion system.

Q: Potential opportunities in defense in context of big programs?

A: National security space tech, such as space domain awareness, space traffic management using Near Space Network Services assets, applicable to national security space market.

Q: Impact of continuing resolution on business?

A: Current programs covered under continuing resolution, our programs like Near Space Network, CLPS, LTV are funded, so business is positioned well.