BlackSky secures $24 million NGA contract for facility monitoring

HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY), currently trading at $16.47 with a market capitalization of $516 million, has been awarded a $24 million, four-year delivery order from the National Geospatial-Intelligence Agency (NGA) for global monitoring of military and economic facilities, according to a company press release statement. The company has shown impressive momentum, with InvestingPro data showing a 92% return over the past year.

The contract, known as the Luno A Facility Operational Monitoring (FOMO) delivery order, includes an initial base and surge option award of $2 million. Under the agreement, BlackSky will provide AI-enabled object and pattern-of-life change detection to monitor activities at military and economic facilities worldwide, including ports, airfields, military installations and railways. With trailing twelve-month revenue of $107.4 million and an impressive gross profit margin of 69%, the company demonstrates strong operational efficiency.

This award is part of NGA’s five-year, up to $290 million Luno A multi-award indefinite-delivery, indefinite-quantity contract awarded to BlackSky in October. The company currently monitors over 30 million square kilometers of Earth’s surface for the NGA.

The monitoring services will focus on tracking trends and anomalies in vehicle, aircraft, vessel, railcar and ground equipment activity at designated facilities using BlackSky’s satellite imagery and AI-driven analytics capabilities.

BlackSky, headquartered in Herndon, Virginia, operates a commercial satellite constellation that provides real-time imagery and intelligence services. The company plans to enhance its capabilities with the addition of its Gen-3 satellites to its existing constellation.

The contract aims to support the development of new products and services that use artificial intelligence to manage high volumes of data and enhance analytical capabilities for intelligence purposes.

In other recent news, BlackSky Technology Inc. announced plans to expand its satellite constellation with new multispectral, large-area collection satellites, known as AROS, aiming for a launch as early as 2027. This development follows the company’s successful launch of two Gen-3 satellites, enhancing its capabilities in high-cadence, space-based dynamic monitoring. BlackSky’s Gen-3 satellites have already delivered high-resolution images, demonstrating their utility in strategic defense and intelligence missions. The company has also secured early access agreements with international defense customers for its Gen-3 satellite imagery, which features 35-centimeter resolution and AI-enabled analytics. These agreements are expected to enhance operational capabilities and speed of analysis for defense sector clients.

Additionally, Benchmark recently raised BlackSky’s stock price target to $18, maintaining a "Buy" rating, citing the company’s achievements and cost-effective satellite technology. The firm’s first Gen-3 satellite has been delivering high-quality imagery at a fraction of traditional costs, contributing to a significant year-over-year backlog growth of 50%. This backlog growth indicates strong demand for BlackSky’s geospatial intelligence offerings. The company continues to focus on advancing its satellite technology and increasing launch cadence to meet market needs.

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