Iridium Communications Inc IRDM shares are trading lower on Tuesday.
The company reported first-quarter earnings per share of 27 cents, beating the analyst consensus estimate of 22 cents. Quarterly sales of $214.878 million (+5% year over year) outpaced the street view of $211.482 million.
Commercial service remained Iridium’s largest revenue driver in the first quarter, accounting for 59% of total revenue.
Commercial service revenue rose 4% year-over-year to $127.5 million, supported by broad-based subscriber growth. The company ended the quarter with 2.31 million billable commercial subscribers, up from 2.19 million in the same period last year.
Government service revenue increased 1% to $26.8 million, reflecting a scheduled rate adjustment under the EMSS contract effective September 2024.
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Equipment revenue declined 7% year-over-year to $23.1 million, compared to $24.9 million in the prior-year quarter.
Engineering and support revenue surged 23% to $37.5 million, up from $30.4 million, driven primarily by heightened engagement with the U.S. government.
Outlook: The company reaffirmed its full-year 2025 and long-term guidance. It expects total service revenue to grow between 5% and 7% in 2025, compared to $614.9 million in 2024.
Operational EBITDA (OEBITDA) for 2025 is projected to be between $490 million and $500 million, up from $470.6 million reported last year.
Cash taxes are anticipated to remain under $10 million annually through 2026, with the longer-term cash tax rate expected to gradually approach the statutory rate by 2028.
Price Action: Iridium shares are trading lower by 7.57% to $21.44 at last check Tuesday.
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