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Terran Orbital Reports Second Quarter 2023 Financial Results

$2.4 billion Rivada Space Networks program on schedule - Rivada current on all payments

$120.2 million LTM revenues up 117% versus prior 12-month period

New 50 Tech facility opens in Irvine - doubling satellite manufacturing capacity

Backlog increased to over $2.6 billion and over 370 satellites

Reaffirming FY2023 revenue in excess of $250 million

August 14, 2023

Terran Orbital Corporation announced financial results and operational highlights for the three and six months ended June 30, 2023.

Second Quarter 2023 Highlights

Generated $32.2 million of revenue up 51% year-over-year

Backlog of over $2.6 billion represents over 1,400% increase since December 31, 2022

Expanded manufacturing capacity to 20 satellites per month with opening of our 50 Tech facility

Net loss of $28.1 million improved from net loss of $32.3 million in 2Q22

Marc Bell, Terran Orbital’s Co-Founder, Chairman and CEO, said, “I am excited to report our positive momentum continues. First half 2023 highlights include increasing our backlog to $2.6 billion from our new constellation awards. We now have over 30 programs and over 370 satellites on contract. We estimate 80% of our backlog will convert into revenue during the next two and a half years. The development phase of the Rivada Space Networks contract is ramping up and is on schedule. Rivada remains current on all payments, and material milestone payments are expected in the second half of this year. We are leveraging our strategic investments in capacity to support Rivada, Lockheed Martin, and other new and existing customers. With the opening of our new 50 Tech facility in Irvine we have doubled our satellite manufacturing capacity.”

Results for the Second Quarter 2023

Revenue for the second quarter of 2023 was $32.2 million, up 51% compared to $21.4 million for the same quarter in 2022. The increase in revenue was primarily due to the continued and increased level of progress made in satisfying our customer contracts and reflects the ongoing favorable impact from significant contract wins and modifications. Second quarter revenue was negatively impacted by an estimated $1.2 million of EAC adjustments on certain firm fixed price programs during the period. EAC adjustments represent net changes during the period in our aggregate program contract values, estimated costs at completion and other program estimates and changes and include the impact of cost overruns and recognition of loss reserves.

Cost of sales for the second quarter of 2023 was $31.4 million compared to $25.0 million in the same quarter in 2022. The increase in cost of sales was primarily due to an increase of $10.8 million in labor, materials, third-party services, overhead, launch costs, and other direct costs, partially offset by a decrease of $4.5 million in share-based compensation expense. Cost of sales included an estimated negative impact of $1.3 million due to EAC adjustments on certain programs during the second quarter of 2023.

Gross profit was $0.8 million in the second quarter of 2023, compared to gross loss of $(3.7) million in the same quarter in 2022. Excluding share-based compensation and depreciation and amortization included in cost of sales, Adjusted Gross Profit(1) in the second quarter was $2.8 million, compared to Adjusted Gross Profit of $2.1 million in the same quarter in 2022. EAC adjustments negatively impacted gross loss and Adjusted Gross Profit by an estimated $2.5 million during the second quarter of 2023.

Selling, general, and administrative expenses were $28.7 million in the second quarter of 2023, compared to $29.4 million for the same quarter in 2022. The decrease was primarily driven by decreases in share-based compensation expense and legal and other professional fees, partially offset by higher labor and benefits, research and development expense, and other costs resulting from our growth initiatives.

Our net loss for the second quarter of 2023 was $28.1 million compared to a net loss of $32.3 million for the same period in the prior year. The decrease in net loss for the quarter was primarily driven by improvements in our loss from operations and gains from changes in the fair values of warrant and derivative liabilities, partially offset by higher interest expense.

Adjusted EBITDA(1) was $(21.4) million for the second quarter of 2023, compared to $(14.8) million in the same quarter of 2022. The decrease in Adjusted EBITDA was primarily due to an increase in selling, general, and administrative expenses resulting from our growth initiatives, partially offset by an increase in Adjusted Gross Profit.

Capital expenditures totaled $9.2 million in the second quarter of 2023.


Backlog represents the estimated dollar value of executed contracts, including both funded (firm orders for which funding is authorized and appropriated) and unfunded portions of such contracts, for which work has not been performed.

As of June 30, 2023, the Company’s backlog totaled over $2.6 billion. The Company’s second quarter backlog includes over 370 satellites of which the majority are expected to be completed in the next three years.


We have over $2.6 billion of backlog as of June 30, 2023 and estimate approximately 80% to be recognized as revenue by December 31, 2025. We expect a steep ramp in revenue ahead and confirm our expectation of generating in excess of $250 million in revenue in 2023. Additionally, we expect gross margins to demonstrate quarter-over-quarter improvement, but the pace and size of improvement may vary depending on program mix and execution. Our capital expenditures for the year 2023 are expected to be less than $30 million.


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