Rocket Lab to Turn Profitable and Free-Cash-Flow-Positive in 2027 After Iridium Acquisition

M&A · PartnershipAnalyst Impact 4
โดย The Motley Fool·Read original
Summary · why it matters

Rocket Lab is predicted to become profitable and free-cash-flow-positive in 2027 following its announced $8 billion acquisition of satellite company Iridium. Over the last twelve months, Rocket Lab reported a $183 million GAAP loss and negative $316 million in free cash flow, while Iridium posted a $93 million GAAP profit and $288 million in positive free cash flow. Analysts forecast that by 2027, Rocket Lab's losses will shrink to $24 million with $44 million in positive free cash flow, and Iridium is expected to earn $161 million with $381 million in free cash flow, resulting in a combined $137 million profit and $425 million in free cash flow. The deal, half paid in stock at $54 per share, would add about 74.1 million shares to Rocket Lab's current 598.2 million, yielding estimated per-share earnings of $0.20. Rocket Lab CEO Peter Beck sees Iridium as the company's answer to SpaceX's Starlink, providing direct-to-device satellite communications, positioning, navigation, timing, and Internet of Things services.

Impact on stocks 3

Space Economy▲ · 3 stocks
Rocket Lab USA Inc.
RKLB
▲ PositiveCapitalrelevance

Acquisition of Iridium is expected to make Rocket Lab profitable and free-cash-flow-positive by 2027.

Iridium Communications Inc
IRDM
▲ PositiveCapitalrelevance

Iridium is being acquired at a premium, and its profitability and cash flow are highlighted as positive.

Theme Impact 3

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