AST SpaceMobile secures $43 million SDA contract

Published 26/02/2025, 15:12
Updated 26/02/2025, 15:14
AST SpaceMobile secures $43 million SDA contract

MIDLAND, Texas - AST SpaceMobile, Inc. (NASDAQ: ASTS), known for developing space-based cellular broadband networks, has announced a new contract valued at $43 million to support the United States Space Development Agency (SDA), part of the U.S. Space Force. The award follows successful testing of the company’s BlueWalker-3 satellite, which is part of its efforts to deliver space-based capabilities for terrestrial missions. The company, currently valued at $7.55 billion, maintains a strong liquidity position with a current ratio of 5.8, according to InvestingPro data.

This contract builds on a previous agreement from February 2024 and highlights AST SpaceMobile’s technology for specialized government use. The company is set to deploy its next-generation Block 2 BlueBird satellites, equipped with the largest commercial phased array antennas in low Earth orbit, covering 2,400 square feet. Investors following this development can access comprehensive analysis and 12 additional key insights through InvestingPro’s detailed research reports.

Chris Ivory, Chief Commercial Officer and Head of Government Business at AST SpaceMobile, commented on the contract, emphasizing the company’s commitment to providing robust communications solutions for the U.S. government through its innovative technology.

AST SpaceMobile’s approach, which includes over 3,500 patent and patent-pending claims, offers dual-use advantages for government and commercial customers alike. The company’s large, phased-array antennas and unique architecture aim to provide scalable solutions that can adapt to changing mission needs.

The company’s mission is to bridge connectivity gaps for the five billion mobile subscribers worldwide and extend broadband access to unconnected regions. While the stock has shown remarkable performance with a 717% return over the past year, investors should note that the company’s next earnings report is scheduled for March 3, 2025. The information contained in this article is based on a press release statement from AST SpaceMobile and financial data from InvestingPro.

In other recent news, AST SpaceMobile has announced significant developments that are likely to interest investors. The company has received Special Temporary Authority from the Federal Communications Commission to test its BlueBird satellites in the U.S., in collaboration with AT&T and Verizon (NYSE:VZ). This authorization allows AST SpaceMobile to test cellular broadband service directly to smartphones without special modifications, marking a key milestone in its service deployment. Additionally, Cantor Fitzgerald has initiated coverage on AST SpaceMobile with an Overweight rating and a price target of $30, citing strategic partnerships and potential growth in the telecommunications and defense sectors.

The company has also revised its stockholder agreement, reducing Rakuten’s board appointment rights and adjusting its board size. In board-related news, AST SpaceMobile appointed Keith Larson and Andrew Johnson as new directors, following the resignation of Christopher Sambar, previously AT&T’s designee. Furthermore, AST SpaceMobile has set May 15, 2025, for its Annual Meeting of Stockholders, adjusting deadlines for shareholder proposals and nominations accordingly. These recent developments highlight AST SpaceMobile’s ongoing efforts to strengthen its governance and expand its operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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