FILE PHOTO: The Nova-C lunar lander designed by aerospace company Intuitive Machines is displayed at the company's headquarters in Houston, Texas, U.S., October 3, 2023. REUTERS/Evan Garcia/File Photo
(Reuters) -Intuitive Machines' shares surged 24% on Monday after the space company's fourth-quarter revenue jumped on the back of higher contracts and it reported a stronger cash position.
The company secured additional contracts for direct-to-earth services that position it to capitalize on the contract's $4.8 billion maximum potential value.
Intuitive Machines' direct-to-earth services offer communication and navigation for spacecraft like lunar landers and orbiters, linking them to Earth's ground stations to support NASA's Artemis program and lunar exploration.
"Intuitive Machines' primary source of revenue is not from its launch missions, but rather from its space contracts," said Andres Sheppard, senior equity analyst at Cantor Fitzgerald.
One of the contracts, the Omnibus Multidiscipline Engineering Services, with a maximum order value of $719 million, allows the company to design, develop, test, operate and create new technologies for future space and science missions.
Intuitive's near space network contract with NASA of $4.82 billion will allow the company to deliver communication and navigation services.
Backlog, a key indicator of demand, grew by $59.8 million to $328.3 million. The company attributed the surge to awards, predominantly linked to contracts with NASA and adjustments to task orders for other agreements.
"This morning's earnings showed Intuitive Machines has a significant cash position, backlogs and additional upcoming missions," said Josh Sullivan, analyst at Benchmark Company.
The company posted fourth-quarter revenue of $54.6 million, compared with $30.7 million a year earlier.
Intuitive Machines said its cash balance was $385 million as of March 10, up from $207.6 million at the end of last year.
Shares of Intuitive Machines have fallen 61% this year largely due to issues with its second moon landing.
Earlier this month, Athena landed on its side after problems with its laser rangefinders, mirroring the same issue as its first moon lander.
(Reporting by Kritika Lamba in Bengaluru; Editing by Maju Samuel)
