Shares of Intuitive Machines (LUNR +1.06%) soared 62% higher in September, according to data provided by S&P Global Market Intelligence. The space exploration company completed its first lunar mission earlier this year, and in September a multibillion-dollar contract award from NASA propelled the stock higher.
A big contract win for Intuitive Machines
On Sept. 17, NASA awarded Intuitive Machines a Near Space Network contract with a maximum potential value of $4.82 billion over the next 10 years. As part of the agreement, according to the announcement, it "will deploy lunar relay satellites and provide communication and navigation services that play an essential role in NASA's Artemis campaign to establish a long-term presence on the Moon."
CEO Steve Altemus said, "This contract marks an inflection point in Intuitive Machines' leadership in space communications and navigation."
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Key Data Points
The award follows NASA's August award of a $116.9 million contract to deliver six science and technology payloads to the moon's south pole.
Contract awards are a big deal for Intuitive Machines, which continues to burn cash. In the second quarter, it had an operating loss of $28 million, well above analysts' estimates of a $9 million loss. This year, the company has spent $41.5 million in cash for operations and still has a way to go until it reaches profitability.
What's next for Intuitive Machines?
The contract awards build on positive momentum for Intuitive Machines, which has had a very successful 2024. Earlier this year, it completed its first lunar mission with its Nova-C lunar lander, Odysseus. That validated the company's technology, which it has been developing since its founding in 2013, and it sent the stock soaring higher.
Next up for Intuitive Machines is its IM-2 mission, which will build on its success earlier this year. On this mission, scheduled for January 2025, its lander will transport an ice drill and mass spectrometer to research ice on the surface of the moon.
Next year, analysts project revenue to be around $371 million with a net loss of $10 million; they don't think the company will be profitable until 2026 at the earliest. For now, an investment in Intuitive Machines remains highly speculative and is suitable if you have a high tolerance for risk.
