Back to top

Image: Bigstock

LUNR Q3 Earnings Call Highlights Growth and 2027 Outlook

Read MoreHide Full Article

Key Takeaways

  • LUNR's Q3 revenues were $269.3M, beating estimates, while adjusted EBITDA turned positive.
  • Intuitive Machines targets 2026 revenues of $920???$950M, with a record $1.9B backlog supporting growth.
  • LUNR expects 40???45% of its September-end backlog to convert into 2027 revenues as lunar deployment advances.

Intuitive Machines, Inc. (LUNR - Free Report) emphasized revenue growth, improving profitability and expanding space infrastructure capabilities during its third-quarter 2026 earnings call. Management highlighted record backlog and stronger cash generation as foundations for future growth.

The company also refined its annual revenue outlook while outlining plans to accelerate satellite deployment, expand lunar services and convert contracted projects into recurring operational revenue.

LUNR Refines 2026 Outlook Amid Revenue Growth

Chief financial officer Peter McGrath said Intuitive Machines expects full-year 2026 revenues between $920 million and $950 million, reflecting the timing of anticipated contract modifications and awards.

Management maintained its expectation for positive adjusted EBITDA for the year, supported by improving operating performance and greater manufacturing scale.

During the analyst Q&A, McGrath indicated that fourth-quarter revenues could remain relatively stable or increase modestly. Management plans to provide its 2027 financial outlook alongside fourth-quarter results.

Intuitive Machines Beats Earnings and Revenue Estimates

LUNR reported a third-quarter loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a 12-cent loss. The result represented an earnings surprise of 16.70%.

 

Intuitive Machines, Inc. Price, Consensus and EPS Surprise

Intuitive Machines, Inc. Price, Consensus and EPS Surprise

Intuitive Machines, Inc. price-consensus-eps-surprise-chart | Intuitive Machines, Inc. Quote

Quarterly revenues reached $269.3 million, exceeding the Zacks Consensus Estimate of $243.3 million by 10.70%. Revenues increased 31% sequentially from $206.2 million and more than fivefold from $52.4 million a year earlier.

McGrath attributed growth to satellite production, lunar delivery, lunar data services and ground communications networks. Year-to-date revenues totaled $662 million, comprising approximately 39% civil, 34% commercial and 27% defense business.

LUNR's Margins Improve Despite Elevated Expenses

Gross profit reached $69 million, representing a 26% gross margin, compared with $6 million and 11%, respectively, in the year-ago quarter.

McGrath explained that higher satellite production volumes and approximately $19 million in favorable one-time program adjustments supported profitability.

Operating loss totaled $34.2 million, while adjusted EBITDA turned positive at $8.3 million. Selling, general and administrative expenses reached $83 million, including $30 million in specified non-recurring costs and a $9.5 million reserve related to the HughesNet bankruptcy.

Intuitive Machines Builds Backlog Across Space Markets

Chief executive officer Stephen Altemus highlighted a record $1.9 billion backlog, supported by approximately $450 million in new bookings and acquired backlog during the quarter.

Awards included 18 AMDT3 satellites, two IM 300 spacecraft for Hartford and NASA's EAGLE-VSWIR Earth science mission. The Goonhilly and COMSAT acquisition further expanded the company's communications infrastructure.

During the Q&A, McGrath confirmed expectations that 40% to 45% of September-end backlog would convert into revenues during 2027. Management emphasized production readiness, supplier preparedness and timely execution as priorities for converting awards into revenue.

LUNR Accelerates Lunar Infrastructure Deployment

Altemus said the IM-3 lunar mission remains targeted for March or April 2027 following successful integrated engine testing. The mission will also deploy the first Altus lunar communications relay satellite.

Management plans to launch Altus 2 through Altus 5 together in 2028, accelerating completion of the communications constellation.

Responding to KeyBanc Capital Markets, Altemus explained that operational revenues could begin with Altus 1 through data relay and navigation services. However, management has not quantified the expected contribution. The company also expects NASA's CLPS 2 opportunities to expand beginning in 2027.

Intuitive Machines Prioritizes Execution and Cash Generation

McGrath reported operating cash flow of $66.2 million and capital expenditures of $32.7 million, resulting in positive free cash flow of $33.5 million.

Quarter-end cash reached $463.8 million, although management expects elevated capital spending as satellite constellation investments continue.

Executives emphasized disciplined program execution, cost efficiency and expanding long-duration services. Their priorities center on translating backlog growth into sustainable earnings and cash generation.

What LUNR's Zacks Rank and Style Scores Indicate

Intuitive Machines currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term outlook under the Zacks ranking system.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company has a Value Score of F, Growth Score of F, Momentum Score of D and VGM Score of F. These relatively weak Style Scores indicate unfavorable characteristics across valuation, growth and momentum measures compared with higher-scoring stocks.

The combination of a Hold rank and weak Style Scores offers limited support under the Zacks framework, which favors stocks carrying a Zacks Rank #1 or #2 alongside stronger Style Scores. Importantly, the Zacks Rank can change as analysts revise earnings estimates following the recently reported results.


 

Published in