Iridium Communications' Q2 revenue rises, beats estimates

Overview

• Iridium Q2 2025 revenue rises 8%, beating analyst expectations, per LSEG data

• Net income declines due to absence of one-time gain from Satelles acquisition

• Company boosts quarterly dividend by 5%, indicating confidence in growth

Outlook

• Iridium expects 2025 service revenue growth between 3% and 5%

• Company maintains full-year 2025 OEBITDA guidance of $490 mln to $500 mln

• Iridium anticipates cash taxes under $10 mln annually through 2026

• Company expects net leverage below 4.0 times OEBITDA through 2026

Result Drivers

• SERVICE REVENUE - Service revenue grew 2% year-over-year, driven by a growing subscriber base and a new contract in commercial IoT data, which increased 8%

• EQUIPMENT SALES - Equipment revenue declined 15% year-over-year, attributed to lower sales compared to the prior-year quarter

• ENGINEERING & SUPPORT - Revenue from engineering and support services increased 62%, primarily due to heightened activity with the U.S. government

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for Iridium Communications Inc is $40.00, about 18.9% above its July 23 closing price of $32.43

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn4pnbXma