BlackSky wins U.S. Navy contract to develop satellite communications tech

HERNDON, Va. - BlackSky Technology Inc. (NYSE:BKSY), whose stock has surged nearly 110% over the past year and currently maintains a market capitalization of $672.45 million, has secured the next phase of a competitive U.S. Navy research contract to further develop optical inter-satellite link (OISL) terminal applications for its Gen-3 satellite constellation, according to a company press release statement. InvestingPro data shows the company operates with impressive gross profit margins of 69.27%.

The OISL terminals are designed to increase the speed at which high-resolution imagery and other space-based data can travel directly between satellites before being transmitted to ground stations.

Under the development agreement, BlackSky will explore hardware and software design adaptations, develop operating concepts for commercial transport network nodes, and establish new protocols for data movement. Future Gen-3 satellites will be equipped with OISL terminals compatible with both the Space Development Agency’s Transport Layer and commercial transport networks.

The laser-based OISL technology creates high-bandwidth, direct communication lines between satellites, which the company says will reduce data transmission and processing time. BlackSky claims the enhanced Gen-3 satellites will deliver data to end users 10 times faster than current systems, with data volumes five times greater than existing capabilities.

"This important award directly supports BlackSky’s ability to deliver timely, high-impact intelligence that drive decisions all the way to the tactical edges of the frontline," said Brian O’Toole, BlackSky CEO.

The contract furthers the design, development, and evaluation of compatibility with the Space Development Agency transport layer in support of tactical intelligence, surveillance, and reconnaissance missions.

BlackSky operates a commercial real-time intelligence system that combines its proprietary low earth orbit satellite constellation with its Spectra tasking and analytics software platform. The company is headquartered in Herndon, Virginia. With a current ratio of 3.79, the company maintains strong liquidity to support its operations. Investors seeking detailed analysis can access comprehensive financial metrics and 13 additional ProTips through InvestingPro’s exclusive research reports.

In other recent news, BlackSky Technology Inc. has secured a contract to provide subscription-based satellite monitoring services to Latin American defense and intelligence customers. This agreement allows these customers to access BlackSky’s Gen-3 and Gen-2 satellite monitoring capabilities, aiming to combat transnational organized crime in the region. However, BlackSky recently reported second-quarter revenue of $22.2 million, which fell short of analysts’ estimates of $27.5 million, leading to a reduction in the company’s full-year guidance. Following these developments, H.C. Wainwright raised its price target for BlackSky to $28.00, maintaining a Buy rating based on a positive long-term outlook. Meanwhile, Canaccord Genuity adjusted its price target to $27.00, citing potential impacts from proposed budget cuts in the Department of Defense’s commercial imagery spending. Clear Street downgraded BlackSky from Buy to Hold, despite raising the price target to $24.00, after a significant increase in the company’s share price year-to-date. These updates reflect various analyst perspectives and recent developments impacting BlackSky Technology.

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