Terran Orbital ($LLAP) saw sales triple in Q4 compared to the prior year, the company revealed Tuesday in fourth-quarter and full-year 2022 financial results.
Terran generated 2022 sales of $94.2M, driven by a record 19 satellite deliveries (10 were SDA/Lockheed birds).
Rivada contract: Last month, Terran won the monster $2.4B Rivada job, and is awaiting final approval on the constellation operator’s IT license before production commences. In the meantime, Terran says it’s investing heavily into manufacturing capabilities to meet contract demands and capitalize on broader industry opportunities.
Terran’s key selling proposition is its high-capacity, vertically integrated production line. The company performs 85% of manufacturing in-house, shielding itself from supply chain headaches plaguing the industry. In order to maintain this competitive advantage, Terran has been preemptively expanding its footprint ahead of new orders.
“In our business, you always have to put the cart before the horse because if the horse shows up and has no place to go, then we’re in deep trouble,” said Terran’s CEO Marc Bell on Tuesday.
Cash: The company’s current investment cycle is draining cash to the tune of $30M+ a quarter. That burn was partially mitigated late last year by a $100M investment from Lockheed Martin ($LMT), which upped the prime’s stake in Terran to 33.5%.
+ Market reaction: As of market close Tuesday, $LLAP traded down 7.5%.
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