Terran Orbital increases backlog to $2.6bn
August 15, 2023
By Chris Forrester
Satellite builder Terran Orbital now has contracts in hand to produce more than 370 satellites. Recent orders from the likes of Rivada Space Networks has pushed its contracted backlog to $2.6 billion (€2.38bn) – a 1,400 per cent increase since December 31st 2022
Terran’s Q2 numbers (to June 30th) show that revenues grew for Q2 to $32.2 million (up 51 per cent y-o-y). The company’s expanded manufacturing capacity now handles 20 satellites per month with opening of its new 50 Tech facility.
Terran says that the $2.4 billion Rivada Space Networks programme is on schedule, noting “Rivada remains current on all payments”.
The increase in revenue was primarily due to the continued and increased level of progress made in satisfying its customer contracts and reflects the ongoing favourable impact from significant contract wins and modifications.
Marc Bell, Terran Orbital’s Co-Founder, Chairman and CEO, said: “I am excited to report our positive momentum continues. First half 2023 highlights include increasing our backlog to $2.6 billion from our new constellation awards. We now have over 30 programs and over 370 satellites on contract. We estimate 80 percent of our backlog will convert into revenue during the next two and a half years. The development phase of the Rivada Space Networks contract is ramping up and is on schedule. Rivada remains current on all payments, and material milestone payments are expected in the second half of this year. We are leveraging our strategic investments in capacity to support Rivada, Lockheed Martin, and other new and existing customers. With the opening of our new 50 Tech facility in Irvine we have doubled our satellite manufacturing capacity.”
The company’s statement added: “We have over $2.6 billion of backlog as of June 30th 2023 and estimate approximately 80 per cent to be recognised as revenue by December 31st 2025. We expect a steep ramp in revenue ahead and confirm our expectation of generating in excess of $250 million in revenue in 2023. Additionally, we expect gross margins to demonstrate quarter-over-quarter improvement, but the pace and size of improvement may vary depending on program mix and execution. Our capital expenditures for the year 2023 are expected to be less than $30 million.”