BlackSky signs international contract adding Gen-3 imagery capabilities

Published 08/07/2025, 13:38
BlackSky signs international contract adding Gen-3 imagery capabilities

HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY), whose stock has surged over 160% in the past year, has secured a contract renewal with an existing international customer supporting Ukraine, according to a press release statement issued Tuesday. The agreement adds Gen-3 very high-resolution satellite imagery to the customer’s current Gen-2 monitoring services. According to InvestingPro analysis, the company appears overvalued at current levels, though it maintains impressive gross profit margins of 69%.

The contract highlights the combined capabilities of BlackSky’s satellite systems, allowing analysts to use both the high-cadence monitoring of Gen-2 satellites and the enhanced 35-centimeter resolution imagery from Gen-3 satellites. InvestingPro data reveals the company operates with moderate debt levels and maintains strong liquidity, with current assets exceeding short-term obligations by a factor of 3.79.

"This important contract demonstrates the powerful, comprehensive tip-and-cue utility between our Gen-3 and Gen-2 systems," said Brian O’Toole, BlackSky CEO.

The company’s Spectra tasking and analytics platform enables customers to incorporate both satellite generations into their workflows. The system allows for sustained monitoring operations with Gen-2 satellites while providing the option to collect very high-resolution Gen-3 imagery for emerging situations.

BlackSky currently has two Gen-3 satellites in orbit and plans to expand to a six-satellite Gen-3 constellation by the end of 2025. The Gen-3 satellites provide imagery that enables automated identification and classification of vehicles, aircraft, vessels and other objects of military interest.

The company noted that the Gen-3 satellites build upon the operational and technical foundation established by their Gen-2 satellites, which provide dawn-to-dusk monitoring services.

BlackSky Technology, headquartered in Herndon, Virginia, specializes in real-time, space-based intelligence through its proprietary low earth orbit satellite constellation and analytics software platform. Analysts anticipate sales growth for the company in the current year, with revenue expected to increase by 29%. For deeper insights into BlackSky’s financial health and growth prospects, including 18 additional ProTips and comprehensive valuation metrics, visit InvestingPro.

In other recent news, BlackSky Technology has been active with several noteworthy developments. The company secured a $24 million contract from the National Geospatial-Intelligence Agency (NGA) for global monitoring of military and economic facilities. This four-year agreement involves AI-enabled detection at various strategic locations worldwide. Additionally, BlackSky announced plans to expand its satellite constellation with new multispectral satellites, known as AROS, slated for launch by 2027. These satellites aim to enhance digital mapping and other applications, complementing the capabilities of their existing Gen-3 satellites.

On the financial front, H.C. Wainwright raised its price target for BlackSky to $28.00, maintaining a Buy rating. The firm highlighted the company’s Gen-3 satellite growth and projected a significant revenue increase, with expectations of 29.3% growth in 2025. Canaccord Genuity also increased its price target to $20.00, citing impressive performance from BlackSky’s Gen-3 satellites and raised its 2025 revenue estimate to $137 million. Both firms anticipate that geopolitical tensions and increased defense spending could further boost BlackSky’s business. These developments reflect BlackSky’s strategic advancements and potential for continued growth in the satellite imagery sector.

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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