Intuitive Machines’ stock saw a significant rise in Wednesday’s early trading following NASA’s decision to grant the company a substantial contract for constructing moon data satellites. The CEO of Intuitive Machines, Steve Altemus, heralded the contract as a pivotal moment for the company’s role in space communications and navigation.
NASA has designated Intuitive Machines as the exclusive builder of “lunar relay systems” for its Near Space Network, which facilitates communication up to one million miles from Earth, covering both government and commercial missions. This contract involves creating a network of satellites that will support communication and navigation for NASA’s Artemis program, among other initiatives.
The contract, which spans five years, could reach up to $4.82 billion in total value, with incremental funding as the project progresses. The initial award from the NSN contract is valued at $150 million. Following the announcement, Intuitive Machines’ stock price surged over 40% from its closing price the previous day of $5.40 per share.
Financial analysts have responded positively, with Cantor Fitzgerald’s Andres Sheppard highlighting the contract as a significant milestone and endorsement of Intuitive Machines’ future prospects and contract-winning capabilities. He maintains a buy-equivalent rating with a price target of $10 on the stock.
Throughout the year, Intuitive Machines has continued to secure various NASA contracts, contributing to a more than doubling of its stock price year-to-date. Notably, the company achieved a historic milestone in February by becoming the first U.S. firm to execute a soft lunar landing for a cargo mission. Following this success, it has secured additional contracts, including those for NASA’s crew lunar rover valued at $4.6 billion and a fourth cargo delivery mission worth $117 million last month.
Benchmark analyst Josh Sullivan also praised the latest award, suggesting it cements NASA’s view of Intuitive Machines as a top-tier provider of lunar infrastructure.
The company is now gearing up for its next lunar cargo mission, IM-2, slated for early next year. Analysts anticipate that the first NSN lunar satellite will be launched as part of the IM-3 mission scheduled for late 2025.
