Intuitive Machines (NASDAQ:LUNR) reported fourth-quarter financial results on Thursday. The transcript from the company’s fourth-quarter earnings call has been provided below.
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Operator
Ladies and gentlemen, thank you for standing by and welcome to the Intuitive Machines fourth quarter and full year 2025 conference call. At this time all participants are in a listen only mode. After the speaker’s presentation, there will be a question and answer session. To ask a question during the session you will need to press Star one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press Star one again. Please be advised that today’s conference is being recorded. I would now like to turn the conference over to Stephen Zhang, Head of Investor Relations. Please go ahead.
Stephen Zhang (Head of Investor Relations)
Good morning. Welcome to the Intuitive Machines’ fourth quarter and full year 2025 earnings call. Chief Executive Officer Steve Alkemus and Chief financial officer Pete McGrath are leading the call today. Before we begin, please note that some of the information discussed during today’s call will consist of forward looking statements setting forth our current expectations with respect to the future of our business, the economy and other events. The Company’s actual results could differ materially from those indicated in any forward looking statements due to many factors. These factors are described under Forward looking statements in the Company’s earnings press release and the company’s most recent 10K and 10Q filed with the SEC. We do not undertake any obligation to update forward looking statements. We also expect to discuss certain financial measures and information that are non GAAP measures as defined in the applicable SEC Rules and regulations. Reconciliations to the Company’s GAAP measures are included in the earnings release filed on Form 8K. Finally, we posted an earnings call presentation to our website which provides additional context on our operational and financial performance. You can find this presentation on our Investor relations page at www.intuitivemachines.com investors. Now I’ll turn the call over to Steve Alkemus
Steve Altemus (Chief Executive Officer)
Good morning everyone. 2025 was a transformational year for Intuitive Machines. We began with a focus on execution and growth. As we look back and reflect, we completed our second lunar mission, expanded into national security space programs, closed the acquisition of Kinetics Aerospace and announced the acquisition of Lanteris Space Systems. Looking forward, these acquisitions significantly expand our scale, addressable market and growth opportunities. As a result, we expect 2026 revenue to approach $1 billion, nearly a 5x increase from 2025. Our combined portfolio has a diversified revenue mix with approximately 40% commercial business, 40% civil space, and 20% national security customers evolving towards a balanced portfolio across all three customer bases. Today, the United States strategic importance of the Moon continues to intensify with the President’s Executive order to lead the world in space exploration and return Americans to the moon by 2028 to do so. NASA is currently preparing for Artemis 2 while reformulating Artemis 3. In parallel, the agency has increased the cadence of robotic and human missions going to the moon to compete with China. Our strategy will continue to be moon first infrastructure and we are focused on growing the business across all space domains. LEO, GEO, Cislunar and out to Mars and beyond. Through our early missions, we established the technical foundation of the company with a mission driven model where revenue was tied to a concentrated customer base and mission outcomes were binary. Like delivering NASA payloads to the lunar surface, these early delivery missions under CLPS established one of the first commercial pathways to the moon and we believe give us a competitive advantage to future growth in the space domain. Our CLPS missions built the operational expertise required for long duration persistent infrastructure systems that will support a sustained surface operations. At the same time, Lanteris Space Systems was operating on a larger scale more established spacecraft platform market with its 300 series, 500 series and 1300 series satellite systems which operate in more mature expansive markets with consistent and predictable revenue generation. Historically, the land terrace model was straightforward. Build reliable cost effective spacecraft to accustomer specifications and hand it over for operational life which can exceed 10 years. Bringing these capabilities together, both Intuitive Machines and Lanteris creates a fundamentally different company. Today we are focused on taking proven production platforms and applying them to new growth markets. As a prime operator, our operating model is organized around three integrated capabilities. They are to build, to connect and to operate. Space infrastructure build is where we design, manufacture and deliver spacecraft, landers, satellites, surface systems, propulsion and avionics systems for government and commercial customers. This represents our business today starting later this year with IM3 or Mission 3 and our first lunar data relay satellite. Our Connect capability integrates deployed assets into communications, navigation, command control and data relay networks that enable persistent connectivity. Our near space network contract which includes data services, navigation and timing capabilities, accelerates how quickly we can reach our third capability which is to operate. This is where we provide mission operations, hosted payload services and other infrastructure based offerings like the Lunar Terrain Vehicle (LTV) services. As we look at these three capabilities, build, connect, operate, each progresses the business towards higher margin services anchored by multibillion dollar recurring revenue programs like LCBS, the TIGER Service, Mars Telecom Networked in the Near Space Network Services contract. While the always on network provides subscription based data connection, additional value comes from operating hosted payloads and sensors to create new markets for science, reconnaissance and exploration. The near term catalyst for higher margin infrastructure operations is surface mobility. The Lunar Terrain Vehicle program is structured as a long duration service where the provider builds, delivers and operates the vehicle on the surface over many years. When selected, the vehicle will become a mobility infrastructure asset on the Moon connected to our space data network, generating recurring revenue for NASA and commercial customers over time. Moving forward, the company sees growth opportunities from an operator’s perspective. These opportunities include tracking and data relay satellite services, Mars telecom network services and the missile defense shield program, while also adapting the 1300 series spacecraft bus for Space Force for highly maneuverable satellites and evolving our satellite platforms for applications in the burgeoning orbital data center market. To support these growth opportunities, last month we completed $175 million strategic equity investment to advance communications data processing networks including extending flight proven satellite platforms. Intuitive Machines intends to invest in expanding its Near Space Network service and establish a solar system Internet. Through investments in the Lanteris platforms and specifically the 1300 series, the company believes it can grow market share in geostationary orbit, expand capability around the Moon, extend capability to Mars, and support emerging high power on orbit data processing and edge computing. Now I’ll hand off to Pete McGrath, our CFO for further comments on our financials.
Pete McGrath (Chief Financial Officer)
Pete thank you Steve, and thanks to everyone joining us today. As Steve mentioned, we made strategic moves last year to transform Intuitive Machines to become the next generation Space prime, providing delivery data and infrastructure services emphasizing growth in communications, navigation and space data network for defense, civil and commercial markets. The decision to acquire Lanteris positions the company for sustainable long term growth. As a reminder, we closed the Lanteris acquisition on January 13th of this year. Therefore the 2025 financials do not include Lanteris Q4 financials do include the impact of Kinetics which was completed on October 1st of last year. Before reviewing the quarter, I want to highlight earlier this month we were awarded a multi year contract as part of the Space Development Agency’s Tranche 3 tracking layer which expands our role supporting the national security Space architecture. This award reinforces our diversification and market expansion into national security programs supporting sustained long term growth in backlog and revenue. Back to the quarter. Q4 2025 revenue was 44.8 million driven primarily by CLPs, ALMs and NSMs execution. While Q4 revenue reflected program timing and government budget delays, we exited the year with strong contract momentum and major awards already announced in early 2026. Since year end we were awarded the SDA Tranche 3 as referenced and we expect decisions on large programs including Lunar Terrain vehicle services and NASA’s CLPS CT4 mission. OHMS (Orbital Habitation and Maintenance Services) revenue was $14.7 million in the quarter for the area excluding OHMS (Orbital Habitation and Maintenance Services), revenue was up approximately 65% year over year driven by continued growth across all key programs such as CLPS (Commercial Lunar Payload Services), the Lunar Terrain Vehicle (LTV) work we were doing and NSNs Q4 gross margin came in strong at 8.5 million which represents a 19% positive gross margin. The gross margin improvement was driven primarily by higher margin services revenue such as NS&S (Near Space Network Services) (Near Space Network Services) and S as well as continued cost reductions across our fixed price contracts. Q4 was also our first quarter with kinetics and as previously discussed, Kinetics historically generates approximately 14% positive EBITDA and even higher gross margins. SGA was 40.2 million in a quarter including 10.8 million of acquisition related transaction costs associated with the Lanteris acquisition. We also increased Internal Research and Development (IRAD) investment to align with our long term growth strategy, excluding these costs. Underlying operating expenses remained consistent with prior quarters as we continued investing in program execution and infrastructure to support growth. Operating loss for the quarter was 33.1 million versus a loss of 13.4 million in the fourth quarter of 2024, driven primarily by acquisition related transaction expenses as well as continued investment in program execution and infrastructure …