BlackSky secures $100 million defense contract

HERNDON, Va. - BlackSky Technology Inc. (NYSE: BKSY) has secured a contract exceeding $100 million with an international defense sector partner, the company announced today. The seven-year agreement guarantees annual capacity for BlackSky's current Gen-2 and forthcoming Gen-3 satellite imagery and AI-enabled analytics services through 2032. The contract represents a significant opportunity for the company, which has demonstrated impressive revenue growth of 37% over the last twelve months and maintains strong gross profit margins of nearly 70%, according to InvestingPro data.

The deal emphasizes the growing importance of real-time, space-based monitoring capabilities in intelligence operations. BlackSky CEO Brian O'Toole highlighted that the contract provides the customer with priority access to BlackSky's services, ensuring they can benefit from the latest technological advancements as they become available. The company's strong market position is reflected in its recent performance, with InvestingPro data showing a remarkable 41% price return over the past six months.

BlackSky's Gen-2 constellation, combined with its ground communications and Spectra® analytics platform, has set new industry standards for space-based monitoring's speed and reliability. The upcoming Gen-3 enhancements promise even higher resolution imagery and more frequent updates, which the customer will integrate into their intelligence workflows.

The company's approach allows for easy adoption of new features, such as 35 cm resolution imagery and sub-hourly revisit times. These capabilities are expected to further solidify BlackSky's market position by meeting the high demand for timely and accurate geospatial intelligence.

BlackSky's global customer base uses its services to monitor various strategic interests, from border security to critical infrastructure, providing insights that support national security and economic interests. This contract reaffirms BlackSky's role as a trusted provider of decision-quality data at a pace that aligns with mission-critical demands.

The information for this article is based on a press release statement by BlackSky Technology Inc. With a current market capitalization of $401 million and a healthy current ratio of 5.7, BlackSky demonstrates solid financial fundamentals. Analysts maintain a bullish outlook on the stock, though InvestingPro subscribers can access 13 additional exclusive insights and a comprehensive Pro Research Report for deeper analysis of the company's prospects.

In other recent news, BlackSky Technology Inc. has reported significant progress in its recent developments. The company has secured contracts worth up to $780 million, including a $290 million contract with the NGA and a $476 million contract with NASA. This comes alongside a notable 22% year-to-date revenue increase, as reported in its Third Quarter 2024 Earnings Conference Call. BlackSky has also achieved a positive adjusted EBITDA for the fourth consecutive quarter.

Furthermore, the company has been awarded a one-year extension to its existing contract with the National Reconnaissance Office (NRO), ensuring the delivery of high-frequency, low-latency Gen-2 imagery services until mid-2026. This extension is part of a 10-year Electro-Optical Commercial Layer (EOCL) contract and includes upgrades to the company's imagery search and task management capabilities.

In addition, BlackSky has raised over $45 million for its baseline Gen 3 satellite constellation. The first Gen 3 satellite is nearing launch readiness, with a launch window expected in early 2025. These developments highlight the company's growth and progress in the industry. The company maintains its 2024 revenue guidance of $102 to $118 million and adjusted EBITDA of $8 to $16 million.

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