Terran Orbital Corporation

Revenue for the first quarter of 2024 was $27.2 million, down 3% from the same quarter in 2023. Gross loss was $6.2 million versus $1.4 million in the prior year, and adjusted gross loss was $3.4 million versus adjusted gross profit of $2.3 million a year ago. Adjusted EBITDA was negative $28.2 million versus negative $22.6 million in Q1 2023. SG&A expense was $28.3 million versus $32.5 million in the prior year. Backlog was $2.7 billion at quarter end, and management said backlog is now over $2.8 billion, including about $400 million of non-Rivada programs and approximately $300 million of Rivada backlog within the quarter-end figure. Cash on hand was approximately $43.7 million and gross debt obligations were approximately $316.7 million. The company did not provide current-year guidance, citing timing uncertainty and the ongoing strategic review.

Marc Bell focused on Terran Orbital’s scaling story: more in-house manufacturing, higher throughput with only modest headcount growth, and a push toward faster, lower-cost satellite production. He highlighted the early delivery of 10 satellites for SDA Transport Layer Tranche 0, the new 18-satellite Lockheed award, and more than $25 billion of identified pipeline across over 140 programs. His tone was confident and upbeat, but he also acknowledged industry delays, supply-chain issues, and the need to bring more components in-house to protect schedules.

Matt Riffel said Q1 revenue of $27.2 million was hurt mainly by $13.1 million of negative EAC adjustments on a single program tied to subcontractor problems, which also drove gross loss and adjusted EBITDA lower. He said SG&A fell to $28.3 million from $32.5 million, helped by lower share-based compensation and lower R&D, and noted expenses should be “materially stabilized” versus historical growth trends. He also said cash was $43.7 million, gross debt was $316.7 million, capital spending was slightly down in the quarter, and future capex will largely depend on the new Irvine facility and the timing of new awards. He said the company is targeting adjusted EBITDA positive in 2024, but withheld full-year guidance because of timing uncertainty and the strategic review.

Analysts pressed management on the new Lockheed Tracking Layer award, asking whether pricing per satellite would be higher than prior awards; Marc Bell said it is more sophisticated, with more stability needed for the payloads, but he would not discuss pricing. Questions on the revenue ramp and backlog conversion led management to say Q2 should be modest, with a larger ramp in Q3 and Q4, and that all Tranche 1 vehicles are expected by August. On Rivada, management said the program is still in PDR, expects PDR to finish by the end of the quarter, and said payments are milestone-based and lumpy. Analysts also asked about the debt covenant and minimum cash balance; CFO said there are options for waivers or extensions on the EBITDA covenant and that the minimum cash balance is effectively $20 million, with no concern about that covenant at this time.