York Space Systems posts Q3 net loss due to goodwill impairment charge, narrows FY revenue outlook

Overview

• U.S. satellite systems provider's Q3 revenue fell 7% yr/yr amid lower contract activity

• Company posted a large net loss after $749.7 mln non-cash goodwill impairment charge

• York narrowed 2026 revenue guidance to $380 mln-$400 mln, citing expanded $14.9 bln pipeline

• Appoints Brian Frantz, interim Chief Financial Officer, as permanent CFO

Outlook

• York Space Systems sees full-year 2026 revenue between $380 mln and $400 mln

• Company says pipeline of government opportunities stands at $14.9 bln, up $3 bln since June

Result Drivers

• LOWER CONTRACT ACTIVITY - Q3 revenue and gross profit declined primarily due to lower contract activity

• IMPAIRMENT CHARGE - Recorded non-cash goodwill impairment charge of $749.7 million, due to difficulty in estimating with sufficient certainty the timing and amount of future contract awards beyond 2026

• SHIFT TO NEWER PROGRAMS - Co said contribution margins are benefiting from a shift to newer programs, supporting a long-term trend toward increased profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for York Space Systems Inc is $13.50, about 86.5% above its November 11 closing price of $7.24

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)