Maxar Technologies ( MAXR Quick Quote MAXR - Free Report) has been awarded an Electro-Optical Commercial Layer (EOCL) contract by the U.S. National Reconnaissance Office (NRO). The contract includes a five-year base contract worth $1.5 billion with five additional years of options through 2032. It is the largest ever commercial imagery acquisition contract awarded by the NRO.
Current geopolitical events, such as the conflict in Ukraine, have shown the importance of commercial geospatial intelligence and programs like EOCL, which allow unclassified information to be shared with U.S. allies and NATO partners, stated Maxar.
EOCL’s flexible contract structure shows commitment by the U.S. government to increase its utilization of commercial imagery.
As part of the EOCL program, the NRO has selected three U.S. satellite-imagery companies.
Apart from Maxar, the EOCL contract was awarded to BlackSky by NRO to leverage the constellation strategy and enhance the Spectra AI platform. The deal has acted as a crucial spur for BlackSky's satellite imagery services to be used in the long run.
The EOCL contract was also awarded to Planet Labs to leverage Planet’s earth observation data and high-resolution SkySat. Users can also access Planet’s Pelican fleet, which is expected to deliver up to 30cm resolution data.
Maxar has tightened its 2022 revenue and adjusted EBITDA range by $30 million.
Consolidated revenues are projected between $1,805 million and $1,855 million and consolidated adjusted EBITDA is projected between $455 million and $505 million.
Earth Intelligence revenues are projected between $1,170 million and $1,220 million, and Earth Intelligence adjusted EBITDA is projected between $520 million and $555 million.
Maxar is a space technology firm providing satellite imagery and expert intelligence services along with spacecraft and robotics for space exploration, research and national security. It helps customers understand and better navigate the evolving planet, deliver global broadband communications, and explore space. The company has two segments — Earth Intelligence and Space Infrastructure.
Zacks Rank & Stocks to Consider
Maxar currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are
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