LUNR Q2 Earnings Call Highlights Record Backlog and Expansion

Intuitive Machines, Inc. Price, Consensus and EPS Surprise

LUNR Sees Backlog Driving 2026 Visibility

Chief executive officer Steve Altemus said backlog reached about $1.8 billion, with civil, commercial and national security customers all contributing. The company also had more than 80 spacecraft under contract.

Chief financial officer Peter McGrath said 25-30% of quarter-end backlog is expected to convert to revenues in 2026 and 35-40% in 2027.

A B. Riley Securities analyst pressed management on what could move revenues toward the middle of guidance. Altemus said procurement timing and the definitization of authority-to-proceed awards are the main swing factors, rather than customer demand.

Intuitive Machines Scales Satellite Production

Altemus said the company is running production across its IM-300 low-Earth-orbit platform, IM-1300 geostationary satellites and a smaller set of lunar and specialty spacecraft.

McGrath said most nonrecurring work on the 300-class platform was retired with the first 16 SDA Tranche 1 satellites, while high bus commonality supports larger production runs.

A Stifel analyst asked about capacity for additional orders. Altemus said Intuitive Machines is adding 75,000 square feet in Houston and still has room to increase throughput on the IM-300 line.

LUNR Expands Its Lunar Mission Pipeline

Altemus said NASA selected Intuitive Machines for CS-8 after awarding CT-4, extending the company's CLPS mission cadence into 2030. Management also expects four additional CLPS opportunities during 2026, including the CLPS 2.0 multi-award contract.

A Cantor Fitzgerald analyst asked about Mission 3 readiness. Altemus said the spacecraft remains targeted for a January-to-March 2027 launch window, with engine hot-fire testing and an October delta flight-readiness review still ahead.

Altemus also said the contracted Nova-D lander, designed for roughly 500 kilograms of lunar payload, is essentially fully funded through flight and landing. He outlined further technology investment for heavier cargo variants.

Intuitive Machines Accelerates Lunar Network Plans

Altemus said Altus-1 remains scheduled to launch with Mission 3 in the first quarter of 2027. The company now plans to deploy Altus-2 through Altus-5 together in 2028, accelerating full lunar communications capability.

A Clear Street analyst asked whether the faster deployment reflected service demand. Altemus said the change was driven by aligning the network to support Artemis 4 in 2028 rather than by a manufacturing constraint.

McGrath added that buying four shipsets together should improve purchasing, assembly and integration efficiency. Management expects the network to support pay-by-the-minute data relay plus position, navigation and timing services.

LUNR Balances Growth Investment With Cash Use

McGrath said second-quarter adjusted EBITDA improved to negative $14 million from negative $25 million a year earlier, while gross profit increased to $36 million from negative $12 million.

Operating cash use was $60 million, reflecting inventory, infrastructure, acquisition-related costs and an IM-4 SpaceX milestone. The company ended the quarter with $367 million in cash.

A Deutsche Bank analyst asked about second-half cash burn. McGrath said underlying spending should be closer to a steady state after adjusting for unusual items, while newer CLPS milestone structures better align customer receipts with launch payments.

Intuitive Machines Focuses on Execution

Altemus framed the company's strategy around building spacecraft, connecting them through communications networks and operating those assets over their life cycles. Acquisitions including Lanteris, KinetX, Goonhilly Earth Station and COMSAT support that model.

McGrath said the second-half priorities are to execute backlog, convert awards into revenue, improve profitability and expand recurring infrastructure revenue. Across the call, management emphasized delivery against contracted work while continuing to build recurring infrastructure services.

LUNR's Zacks Signals Remain Mixed

LUNR carries a Zacks Rank #3 (Hold), while its Value, Growth, Momentum and VGM Scores are all F. Zacks Style Score methodology places F at the weakest end of the A-to-F scale and uses the scores as a complement to the Zacks Rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks highlights the strongest combinations among Zacks Rank #1 or #2 stocks with A or B Style Scores. LUNR does not meet that profile, and its Zacks Rank can change as earnings estimates are revised after the newly reported second-quarter results.

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