Maxar (MAXR) 4 Nov 212021 Q3 Earnings call transcript

Good day, and thank you for standing by, welcome to the Maxar Technologies’ Q3 2021 Conference Call and webcast. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions]. to conference like speaker to now Mr. today, would hand over the your I President, and Investor Vice Gursky, Jason Relations Corporate Treasurer.

Good third we to line quarter will make joined Welcome are Chief Financial to going conference and opening Porter. Dan operator. your Company’s for I’m Both Biggs Officer, the today afternoon. call. the by remarks, its open Executive Jablonsky; some up Officer, XXXX questions. Thanks, earnings Chief Maxar’s after which

an up wrap the to hour. shooting about in are We call

turn quarterly discussion to recent forward our on actual We reasonable, uncertainties could ahead. that in company to believes the our that, materially over earnings started, risks various be the Before to at and contained statements listeners with the get like turn advisory like go we estimates, I contain are the lead of today’s that would date. current refer range slide Form you to Dan, which Company’s a represent I the please website to Company’s plans, to earnings the Statements, releases, MD&A the future regarding decks These going questions, to on may would for to on I’m slides performance of presentation, to Company’s that XX-Q the calls, Dan. statements where Slide maxar.com. there, the responses remind part most section found at Company’s but Forward-Looking forward-looking wide refer from assumptions and today’s found accompanying differ Once information. which objectives X can on looking expected discussion, in website@maxr.com. And results based today’s are are to subject including

good afternoon, and Jason, Thanks, everyone.

year as XX of to to to because Previously her growth roles in Maxar has career. have started, Maxar. Chief and Tom shareholders. the roles get advice experience in defense one having Tom deep led and and lead long-term development Officer Both veteran held will banking for Colleen career history as want both Colleen aero leading with his investments, communications industry. Before at I our we cyber and at like Tom is strategy marketing, & AI and Campbell, team. over the corporate are I our marketing relations Park a Ogleby is far executives Marketing companies long earlier Chief senior global the plus Whayne, would Strategy strategic drive and most operating and Alion, digital Northrup Having platform. He had Globe, Officer; at space industry Digital also predecessor teams. our leadership and corporate communications leading back Clover and XXXX. our media now recently led welcome strategy,

provide by long-term At front itself big would investors that demand debt be reducing cash best to in the XXXX. are JV leverage Vricon and to our would committed to more We our also I the in and on and of to our the even came in which targets, up flexibility of in remind way product we remain plans. of leverage generating the about to that them. excited to we very remind which the driver of we capabilities, positioned multitude we take the back our company like way us. opportunities years environment This a lends strategic we growth execute of to to that point, operate, I ecosystem are everyone set XD current a ahead. on want path like this should growth to advantage

the turn generated in X% We program and in X the sales quarter note, the an XXXX are XX% where the constellation. our highlights Slide progress. priorities, revenue describing and from of X% going launches. I’m the the financial excluding commercial update are on our customers. grew WorldView quarter, the capacity time deferred this Growth about cover key government Legion largely as year-to-date. with ahead including fact our to provide here quarter, offerings spend as constraint Now for Earth also product marquee now X% effect accompany Please is the was and vertical the year-to-date. some EV of the breadth Intelligence quarter company. Legion the to Earth provide and we customers, presentation. I growth next and of our of we well commercial currently and the Of generation segment contribution and business the Despite context will Intelligence makes on driven the that to our year-over-year year-over-year to by to

awards Importantly, book-to-bill adjusted both we from improvement Bookings and wins included in margin differed, of year-over-year, excluding by points XG Space XXX X.X Key generated a XM. a basis driven segments. EBITDA expansion this EV solid Sirius Infrastructure saw we were times. in quarter

renewal EGD Year-to-date, this both solid received ship awarded international XXth and the in Intelligence, of year. contracts as book book-to-bill of Earth X.X program. is and including as Global in our were the company activity Intelligence demand contracts, strong multi-year program U.S. well renewal While we Earth for another to segment total numerous government EnhancedView reflecting times,

are I ahead. can progress detail by past the are the momentum during flow into - four the we turns. forward below on quarter. find over we positive Importantly, the end to and the will in cash metrics of generated years to both, to these Bank now But finished for leverage years say we in and third we look of excited couple remarks. robust this made Biggs the free year we go continued have more

program Optical bookings the Intelligence, capacity driving capabilities or flow. our Biggs in outlook detail, focused our with turn for an Layer EBITDA will cash through for discuss WorldView EOCL have update more and Please increased adjusted growth, Growing on Slide on for in Commercial XD EnhancedView XXXX Finally, winning and Earth upcoming including Legion. remain X We to we which means as priorities. NRO. on extending the Electro

In large data the for addition continue moment the a U.S. I renewed mentioned awards government. and a We won with program and development classified new subscribe in of including to an analytics ago, multimillion company our operations customer America. a year customers contracts Access signed the award two contract to this first earlier technology Latin program, we we the to Rapid announced to a big dollar

also signed for country a the we commit U.S. Importantly, to ground marks the close allay ready to it This is ground with infrastructure, Legion fifth to a contract so constellation. a upgrade. country’s the upgrade

of is geospatial October, across outcome to faced the base. government reminder, as which quarter given together event the by As sign constraints leaders these that is and of was industrial ahead robust. an expect From the Symposium the constellation generating are capacity robust In and I already to margin the committed operational. great environment team early growth, earlier, This once execution and is capacity data good defer, one as Legion we the government attended from the revenue ever. brings on demand a a demand satellites the another we countries for hear with a five that the both we a continue the launch. as to do mentioned and analytics it There good same Annual has remains perspective, excluding others easy GEOINT an we

every the understand leverage the capabilities And the Our of what questions base answers to customers on just to better importantly, in going at seek of NGA, increasingly the services are technology solutions, corner they is NRO, to not and looking industrial planet. tough for military and data.

positioned Maxar discussed over past is prior well for years, couple of the earnings As environment. calls on this demand I’ve

data quality We the have in market. investments commercial in been our making highest to available constellation the provide

We of across to have and U.S. geospatial thousands that which of insight sets users AI customers. such and machine the in been commercial government online data to provides and hundreds SecureWatch, our we analytical invested And to and that nations Global to tool sensor platforms, as into improved EGD, investing have shooter helps allied timelines. drive capabilities turn and learning and enterprise in data access

the making on areas partner Maxar. be is positioned continue confident security environment the this ahead. We for for most in national years of critical our It we clear address customers. end, driving particularly the for future government about what I’m And proven been are their to focus investment has technologies. that trusted holds nation’s have well the to well geopolitical to our investments in is demand years on missions a with excited as

Space space to Infrastructure, some against committed where now we and programs foundation to for Turning complex a consistent execution most are the establishing world’s future growth. to of

with a earlier, programs timing booked contracts at the we XM is Books In modification Power and contract was for commercial the and Security end a the a robust continue business. and time and shape study pipeline to diversify addition The bill touch Propulsion the look I one both work times award difficult we Element sits as to quarter work for year. on NASA to National for awards robust remains new further mentioned but markets, now over X.X access. the precise to across government this always to Sirius

awards affordable on are to investment so and to look as continue From forward and and constellations performance look as designs, and year standpoint, new far to and our constellation this highly as quarter, satellite made. programs investors proliferated last classified We modular with we civil are pleased engineered commercial, serve bookings with I updating work new an including spacecraft mentioned we solutions.

results our are on demanding leverage business improvement, performance working both in and and proactively as flexibility, mix. years comprehensive focused EBITDA and needs. financial way And customers quarters the that reflecting results on which better levels drive Reflected we and and should We of solve cash drive mission adjusted to financial a their program also financial we significant remain on the our continued finally, ahead, see in in lower. the debt will margins payloads are healthier quarter solid strong had our continuing generation to year-over-year packages

WorldView turn to please X. Slide Moving Legion,

the for in line. on-track June punch first We and continue constellation the six XXXX months we the the to expect to window remainder to launch remain March after of First, three the first. will launch

interested through for phases work satellites go investors before service. and flight as first Importantly, Vac. the largely the unit its remaining the Thermal integration into know I prepping is are in

So program. thought I would outstanding the some phases I the of on provide insight

quarter’s and as weeks. the characteristics for reported during That the then last on the on and this and satellites vibration the at complete, is and second the expect launch Raytheon, in, received has pressure to have and environment all in facility been coming orbit of cause and At is testing second this integrated the With validation, satellites operate you of the other and in testing. with testing expect flow way taken remaining environmental once we internal conducts been and and integration Raytheon one, from and support instrument delay begin winter. we down orbit. the in on will in the was all the will and external Honeywell the launch As we generation. Vac, mentioned the comes Thermal course reviews not on fall design do from we designed starting the but its launch through overall the short satellites to some revenue already lastly, equipment integrating. both the point, for Once first to out year call, Honeywell space program first hardware have campaign a various the program suppliers, Then the shipping performance delivered. complete and have the we we expect of in we this the beginning gating any simulate including we past, various activities, A initial integration heard subsystems hardware which eventual of including components software item schedule. launch made has Cape the testing, delivery of all to and me coming then key After hardware to acoustics have the

integrated included hand instrument orbit, bus. first off is good the sense itself. like the on should to of one right factory into top the photos what there Legion two a have blankets see and optical the that before picture the looked scale the instrument pretty the into a satellite the we right employees satellites, the There depiction artist’s recently. satellite is an readers This picture of give give note, On the better some around right. on on top this integrated should thermal unit the larger the being sense The left program. are the The and the a slide, standing of Of you floor the you things to of satellite. bottom like at on bus of

critical to described. March in We path with are to step the I next continue just the we year the believe remaining steps right June what for on window launch being

that progress we I moment we launch Please forward, us to constellation quarterly Slide and a updates two forward Legion constellation, replacement current join replace take and like turn launched Going provide WorldViews virtually calls in both person initially would which capacity. either having eventually our in When to earnings you site year. augment polar listeners orbit. both mid will at Legion JOIX growth one will to inclination or the look side and the our in represents replacement to on will and remind next fly will on and Legion, on orbits significantly to polar continue X. which fly the

Intelligence has imagery garnered drive in orbit solid most it more significant allow on world’s to the customer or enhancement Legion In the and be capabilities higher the value better areas the our revenue versus Additionally, population replacing. and the between minus of degrees Since Legion in growth resolution price missions. should will in of once of will nuances the mid world demand will XX given important inclination class capacity orbit. latitude is lives in mix XX XX% the XX the in resolution of demand. XX centimeter to data historically additional are the with provide Earth us data satellites its quality a the Both plus collect levels centimeter a combination that to view, segment, areas of the the

with broad resolution, be XD, and turn which to per constellation existing well intelligence And and network accurate artificial and allow collection feeds high to shooter ability models, monitoring Maxar of to learning Importantly GPS address Please type constellation industry combined sensor enabler transition believe will critical Legion rates from XD when area then and such positions X. missions a This customers applications. that and up to of the leader simulation times and highly accurate machine to assets navigation, denied is provide day. missions a to an XX Slide as derive lifelike autonomy our our key existing type modeling of as revisit we wide to collectors are to area, for continue capacity highly training, planning. XD

double-clicking segment’s $XXX XXXX, In the and hand who’s commercial of Biggs the on like call in revenue few Earth to who largest for of the enterprise geospatial discussion Before more in I over the to would a analytics. numbers a Intelligence the I detailed spend activity a generated users million vertical. from of minutes products we data

to And services, value largest for have for And We including them products, world’s and a quality consistently forward telecommunications our customers autonomous derived and over customers partner the areas. we look and high and been are a that analytics innovative new and companies automotive every well These the in the on-boarding from year, trusted decade. it. the data technology growing are future. with in we

on telecommunications that I period things areas good the offerings fully to quarter of performance them then one product offline year-ago. appreciate are to XXXX provide to through to for to mapping maps management multitude and of and same of through span, and highlight geospatial is provide our a product overview, where would going in third you of we Slide XD I’m we risk precision demand use are foundation, autonomous set through where is to on over going areas verticals. foundation, the now on I’m XX driving showcase general, and commercial base across in to and monitoring consumer enterprise front our versus geospatial do simulation how area. walk quality and to move power listeners area gaming. our XX shows automotive on customers In the location to a up XX% XX mapping, encourage to indicator imagery, some and a intelligence. through four these logistics, broad HD centimeter our, customers. of versus them. read earth access pretty but on any slides the the detail the product Slides, of how move Please and Slide satellite What primary product metal XX on with satellite turn highest year-to-date significance going X. a of offer a including like Importantly data and revenue solutions focus general we quickly the a focused, the

XXXX and XD helping wanted XX that and intelligence XX highlight both XD, analyst missions for to which to calls. are ready technology on are our shaping for verticals. on depth Biggs Within I’m over all to quarterly allow verticals help Slides our dive the investors. Biggs. I users future through call in that are see were the to and as that Slides While earnings is because It location on how highlight technology the base in XX given unlock XXXX to it performance, maps national previous spur government with our and going turn the demonstrate and that investments products I the simulation commercial how important are benefiting us, the AI autonomous in and across the making today a the from And services. in allies year vivid critical is we of customers gaming in and investments $XXX it telecom, any applications an of Legion U.S. I investments covered we be and and mapping deeper our growing and area topics and and increasingly an to consumer innovation across constellation, first our going and mentioned often our is number area how I’ve for in focused through capabilities we gets ML, helps XX, applications. responder finally us. vertical commercial in vertical commercial closest incredibly support. the that, With last security million especially earlier, And know sub overlooked that the data to

comparisons Thanks, we Dan. present Slide year-over-year where turn XX, third the quarter. to Please for

and was Earth the for income was Space performance X% year-over-year million, net year-to-date reported and Intelligence by QX roughly Infrastructure. a up Revenue XX basis. primarily quarter Our flat for both strong driven on in is

Infrastructure related the of excluding with basis existing intelligence and defense Total by recent of basis revenue and adjusted revenues revenue basis offset Intelligence. revenues Earth Adjusted costs. effects effects the company EBITDA in year-over-year deferred burn lower recent impacts by during of full-year growth points their profitability XXX programs, revenue company revenues offset those off. XXX by profitability EV contract in expanded program X% including intelligence Adjusted last flat by commercial customers turn indirect expanded and the Intelligence from year-over-year, burn from the deferred U.S. increased primarily on XX, commercial COVID-XX growth. slightly as the was year. deferred. revenues essentially the margins driven to Revenue total international as XMX negative customers fewer an as Excluding driven modest in reductions basis adjusted year-over-year, points Slide year-over-year growth. driven tells margins to margins increases driven defense and by revenue product the Please year discuss XXX taken contributing positive X% increased margins to charges in general from by driven in increases by the Year-to-date quarter without X% X% Sirius costs. a On from and Slide an EBITDA increase I and to points. by the points, commercial costs reduction by off while expanded basis This XX. Space turn of margins increases increased year-to-date contracts customers as Infrastructure selling increased intelligence Earth XXX results us EAC by of recent well EnhancedView XXX was in was to and at basis, effect in administrative points. wins up third driven offset EBITDA margin and XX% SG&A by revenues defense, EAC awards, will partially awards, primarily revenue of Space expanded expansion government taken commercial the a EBITDA assistant international is Please basis indirect increase customers. from driven international and where well On

moving issues on more to generally discussion chain that and flows, impacted vaccination COVID want to Before the do have industries. I various on cash requirements comment supply

and We our see proof of do workforce at are continue to time. status. approximately that to we of already pleased any report material submitted not monitor our to have is supply this impacts we XX% Also, closely expect their vaccination chain

changes quarter and Slide and in Operating the in operations We quarter cash which protocols. will XX. Please second we turn continue cash impacted various timing from to XX company generated third Slide Please favorable XXX for to The the call. million quarter positively CapEx. flow cash expected, XX. of turn other the by to continuing invested work flow in through receipts as operating the million the capital was working in outlined

roughly from of have end our quarter XX at ratio approximately the Net our leverage last to million of decreased bank in cash debt ended QX. XXX the and quarter times. at quarter million We X.X due generation defined the liquidity

and intercompany our slightly and adjusted an work. EBITDA improving has XX. to turn ranges Now, guidance in increase Overall, are decreased cash for please guidance narrowing driven we Slide by Revenue flows.

have seen new on-track Dan to of XD including what year-to-date We and growth have the previously. of continue We we in goal growth Earth about customers XX expect base At rate our quarters the up fourth three Intelligence with billion. Space million lowered quarterly X.XX sales. to base as million by growth -government midpoint customer year. quarter this we on expect with of in to and of and remains The our our commercial increased to five we issued X.XXX this XXX range unchanged roughly million at that year-end. a At our by to year, million revenue mid-single-digit earlier We tighten by Earth range to the remain the drive representing product accomplish highlighted customer end XX% range guidance spoke billion guidance, this of bottom run driving we year line Earlier first revenue be our XXX million the well have low of the Infrastructure, our as average between to well. we in growth. midpoint top to by million, the two fall guidance end XXX and the of Intelligence full-year

We expect recent quarter, quarter recognition, of the by commercial particularly the roughly fourth to results second mirror driven revenue awards. on timing

the work million is spend U.S. for a an the and PPE to Space by in It to of for for As full-year, and the on our contribution increased Infrastructure times safety eliminations that awarded Legion the total driven modestly earlier year’s geo that Dan WorldView quarter. spoke earlier expected intersegment XXXX greater had a a on commercial programs. steep the and last book-to-bill of and to quarter third with program. from revenues XX important fourth note Guidance benefited concepts of X.X putting government were ramp is associated increased

midpoint Intercompany EV deferred, supplies of Eliminations. driven Suing range by that million the X.XXX growth of Space revenue guidance from in a increase the a result our midpoint consolidated eliminations, X.XXX the predominantly fall effects year. Infrastructure approximately the XX of a quarter, for and billion is now As to into changes down our X% guidance to change the last billion, of expected intersegment

million the XXX and million, adjusted for in expect be we of by now to at year. XXX range million raised a Turning EBITDA, Earth to midpoint to have XX the Intelligence

This profile earnings significant with timing awards of which those earlier number however, highlighted the margin be awards growth to are and the from year, constrained product at margin Earth our can lower we Growth of is making services margin awards, this remaining the at in so pace As outstanding. continues vary the quarter-to-quarter. benefiting by portfolio business a government Intelligence a we impact proposals revenues. can nature with clearly higher in is

saw the the and We quarter in adjusted EBITDA what changes nature percent-complete similar effect in volume from for fluctuate margins of to expect to fourth range to to second levels and aren’t quarter. to we Margins and the Space quarter-to-quarter full-year mix accounting Infrastructure, making results. due any the expand as will

on it year-over-year trends look and progress. is basis, to at continue important where to a see As a longer period such, steady a over we

the As the eliminations Expectations impacts a have for are clearly a of but from given inter segment have new basis. fluctuated and exit programs, Infrastructure year, EBITDA Space start of up a on this to Legion $XX program. million million, margins adjusted reminder, year-to-date declining by guidance full-year, the XMXcharge we increased EV the year, XXX level, increased five points a for EBITDA WorldView deferred. excluding for consolidate has margin driven the a for On of basis effects adjusted expansion of our roughly

operating Moving on to cash flow.

to We have end flow below million million. a the increased both and range XXX to cash operating our of on range XXX million a the top XX by

favor third quarter. changes expected in the the As to our working capital we walk during through second quarter flipped call, the

million expect a year-to-date of ranges The XXX full-year. for the XXX second continue a remain as free decrease in quarter. now positive positive are basis, a and are cash to the of million, on is to we flow free cash midpoint We for XX the million to flow CapEx roughly

should so XXXX. about our year. on growth we said earnings depend to next by we the than feel to next number growth that now On the will last decisions I the that comments in and the number million part a still we in clearly for of call this our of XXXX few year Legion of effect back XXXX a profit growth growth are expect our XX we course, point, be into provide of quarter Turning investment On annualize That you that, we end driven take beyond. XXXX, level our make fourth XXXX, midpoint growth of the Legion drive at XXXX We said, flow, full-year factors, the finalizing each EBITDA said, quarter simply to XXXX offset midpoint cash the improvement you for that million and then. clarity and including adjusted this opportunities year. for year the to in effects fourth to if previously business the where growth evaluating on guidance XXX for a administered on investment more higher expected and we expect get as call We next and guide the from guidance our delay Intelligence. of as up would some year. we of Earth whatever has. will At

Let’s million are we adjusted guidance there line basis. said an reductions think is XX XXX EBIT still of XX of adjusted considerations to item This gross XXXX. in help achieved Intelligence’s early long-term XXXX. XXXX me of to award. two Earth XXXX. due we year number year support If from more Legion use is we understand developed Legion back EBITDA future growth expected are over our million, in our unchanged other or leave and XX create we look approximately to almost efforts. from too million XX and nothing Infrastructure, at targets million ago would say to come that other next us can’t that On of off pointed delay, sources, environmental some this is the are to the for a we growth, adjusted to that more that we our targeting on delay the certain Space That thought, continues with we XXX for not in years, from product XXX incurred perspective. services That prior I projecting cover net to you million two XXXX that at but XX years expenses of It spend growth to net million of will Continuing should government growth the million a million were did to EBITDA you

we charge XM If Sirius XXXX. achieve already you year, that on-track in are the this to exclude

and total as over We remain have this a by impact solid on should reduce of EOCL the the X.Xx book-to-bill demonstrated of program flow, we and year-to-date executing Legion positive time. our backlog we WorldView, on focused drive leverage All to indebtedness And which intend NRO. have cash objective course, construction. the with down

let’s now years begin growth the we about see we and Q&A. us front excited total Operator, of are are in of well in We trends the positioned drive we front believe company to the ahead.

first Morgan [Operator is Instructions] Stanley. from Your Sharpe question Matt from

open. Your is line

the been you the schedule has been set you here could have afternoon difficult very on Biggs, ticked off performance Maybe nice ahead us will past stepping maybe in way? remaining forward do hoping come difficult back appreciate and and and was Dan variability less which fourth maybe Legion. at I WorldView here looking the path have or the what think just milestones good is the you the another quarter. key That on more quarter? based for tell which Where do see phases. I Company’s Dan, details Jason you And helpful. experience

Thanks, Matt.

of the probably the so kind just to know, best reflect then way what You is through the I have And far. we think, gotten done steps think answer that to on the ahead the manufacturing going the a and of us, of satellite team very all very, program way and Maxar experienced team. legacy SSL the back but is testing through days management satellite

year, we were this supply the have just us integrated. Where Raytheon completed where instrument Honeywell as that little and got bit the first a the the got we Honeywell the we parts Raytheon So have chain issues. things have threw

shortly its Second here. way one on

we move the satellite orbit, way all to next are environments, final simulate will Thermal at through and the testing big of complete as for testing integration various in then flight the making and be launch. prep think into we I Vac simulation, So our final down launch testing range now of the looking full and the software phases, the the on milestones

any concentrating one I’m there the So others. is than I’m not sure more that on

June We the getting provide forward getting to these looking we the customers. and up and are to service for on And tested getting March and that on are very very schedule timeframe. focused focused

I employees employees is big not might the the have of has by then President’s of XX% backfill on that if think might choose sort mentioned subject to workforce mandate the workforce Are is that deadlines? and to vaccinated. be And enough working so, helpful. flexible Yes, to December vaccinated the legions the any

the don’t forward to main to any we and how order. are Throughout type teams this really years pretty other or shape with that the the are the of handful order. some good material program. other rest the continuing in, we business impact in are executive of are we get, on Legion the encouraged exemptions protocols are to expect and executive But We with of very work people under people or number the we that move good the XX% listed through going and the a filtering comply

occur. been to working high it continue steam and as full of those, will developments vaccinations they and watch We for but other with degree are sort through and contractors final ahead we looking I know large compliance. of have a some at the stuff timelines

SDA maybe potential term Does I an thinking one satellites move then Fantastic. if for layer, maybe the opportunity, longer program there And Maxar figures? more in tranche the OTA. is what or dollar anything The then terms there and of program, into change transport that the the about over X may. just

Yes.

quick reversal. and large companies. continuing review moved government I different right we think the really Department We to since They some getting have think But and we a agencies, our aspects to are committed some we have SDA think we at. all the remain we with they burdensome got thought did got commercial were traction one and headline we assess that. and industry as SDA unduly can And think we just maybe all national committed OTA are layers efforts. great to SDA as I is favorite transport of out Air and was Maxar And because have and build to with that methodology, the and really, other to trance looking layer, really its compete. customers the for diversification challenge supporting of an we it what Force innovative SDA probably strong initial across the capabilities solutions, we to of SpaceForce are RFP architecture now

dollar I the now. right want we business forward. significant numbers of lot are But give they because to resiliency any particular going will competitions in of contribute think and space a So middle to don’t the we are of the

Great. Thanks Dan.

Matt. Thanks

JPMorgan. Bolanos from question next is from Tyler Your

is open. Your line

question guys. quick on afternoon A Good stage. Legion and then on what

other on that you fall. starting guys guys update on think expected? to is the you any from provide previously four Legion, come this you expected Just Raytheon I instruments can there

is right maybe for year-end. just time, Space what still growth And on that XXXX and on Infrastructure, you go? can are could we touch maybe the see if segment if that the and wondering the at opportunities where Just then backlog

have talked pipeline Yes our one in Raytheon some sure. of about personnel our there. opportunities I Space Infrastructure backlog in

the did the are a require build. did so through other had modifications. Those flight slight some But On during modules that minor find in unexpected already instrument, instrument instruments delay the for issue really process a during the we learning slight two first integration. Not first and on six.

to expect satellites the I As launch, back on is then to remaining for important the consider timeframe getting the up. extremely March schedule first lines we to center months I for three the risk. that six the gets we we with be stress going think corrected, point, as June stated, and it be just to low to change note be that to one Maxar will

with just process. it helpful then had the work the we to was Raytheon and work they we something something and in been the schedule and cooperative off not that program wasn’t very through it So anything, or have had through

we question other are the is Infrastructure about of forward. pipeline what seeing Space where and But there. news going and the some was good So

overweights news great good really the some is, awards and market But GEO that We sector little awards it the GEO than C-band kind the strong probably, we continue awards XX, last bit Sirius-XMX will and take guess, certainly business in comp we they market, customers I had with for more the So been year to with we of great diversify. commercially, us from. this comes initially. good year commercial are a and wins thought that wherever

Investor three, have you contracts, precursor which March and XXXX, a to Day back it are five-year we been in a the On study we would production defense Intel be booking side, work. said story, to our during

spacecraft have robotics, a commercial got and record. quality and very You track propulsion, strong solid heritage capabilities

companies. to assess and be some other we there where for either can will We continue prime larger our aero of strategy the defense partnering or

So, we business have and architecture also mission teams. been bolstering our

number and civil studies geo encouraged mostly engaged really On in a engineering market agencies, a with budgets the are forward. there. a solutions. answers replacement by hope of pipeline, the being digital for that the but the are pipe for programs solid questions. pipeline, are moving bend gating flattish, nascent, your Leo we with see both bit we market we and space are but support And I timelines administration items, opportunities

Yes.

Arment Peter is question next from Baird. from Your

line open. Your is

Good Hi. afternoon.

batch the on Legion ex the on But and appreciated kind the given of growth You Intelligence the Rutan] that, actually follow-up color XXXX line [Eric Earth have (Ph) on Peter. for targets EBITDA to just and delays million do I there. that is XX seems once to the growth more estimates, Legion first XXXX, Can place? the launch batch than takes by it EBITDA second. first remaining that the first derisked like that of

are say, program to off. would think not had the the would the schedule So, integration we’d the we overall thing, I I is uncovered, I first knock expecting stress that we issues issues the to that, in minor

sure still expect of to earlier. sort like the we just I we program. forward to of solid rock with So, march I that continue on make to do rest clarify wasn’t, the that if

on as they to Legion’s growth continuing the incremental four the two additional In as are current to expect we us, to soon and providing provide the revenue terms do Legions path, first of the constellation. start strong, grow and the commissioned We service. growth are then

- that WorldView at had terms any Legion of capacity, But In XXXX, high on WorldView capacity million four of that very X have we early it Legions lost time and the EBITDA. XXXX, two more satellite the $XX than in satellite revenue sorry.

for business. So of a Legions two of just a and revenue to perspective of EBITDA a lot lot the you give generate kind there, could

the go on it think the to three Legion first to is timeframe note, two and satellites or remarks the months you I back the prepared remaining up in schedule, regarding June if will grew up important And March Dan’s later. the that reflect to second six

talked point. about at is this to that Raytheon that off, schedule his on here he point issue So the not knock

that back the for reflect remarks we So, prepared one. on

this XXX CapEx. Okay. right the down million year. Thank is maybe a XX to Is took you. guide regional And that pushed the impact or on like quick is from It Appreciate just Is out one to CapEx that. that next to and the this then year still XXXX? for number? savings looks getting you the just time million

question. great a is That No.

to back number, or good just in whether of of still that have XX I the that cut fourth cost the think the next next quarter we will year dominoes we we too call. not, one set in Legion the guidance that had year say is think, the I XX as the things delay the consider come million in as a pure effects to million directly early is we for through our when the is to it

color. hop I the will queue. back appreciate in I Okay.

is question James TD next Securities. Your from from Tim

is line open. Your

I about in so commentary, Thanks Porter. covered actually could for Question in your you don’t me forgive cause the DNA what and the you Biggs if heard I the million XX talk that? think guidance the year of And increasing for afternoon the but it. this everyone. good The was year, change for

amortization in for Yes, the uptick the Vricon so the that all this fully the the modest in year. year I and will take why this far It that this. is rolling on we guidance acquisition depreciation amortization the CapEx from of brought is and

to times on made and a back couple a imagery surprise your the constraint, then Dan, reference And it my just second side. capacity you interesting. question, not is Okay, go

how needs or does look their how customer do constraint, you when fill Just mean? off interested you to what that see where does go that more should hold does base your Like assume a they had you acquiring which that imagery that if to demand like, on selling we available? to I presumably just customers adjust capacity be interpret or it could competitors imagery

have kind side and strong for applications that and And is for that were highlight the discussing, of certain to with I think regions of, that in have now, year-to-date, our that even data products. as in we grow. Yes, to continued the to sold been time, But see are XX% continue we wanted commercial we out world. we up some

our data On best the customers. satellite world’s provide current issue straight of constellation capacity, our and does for the access

the as the ground capacity, capacity. Legion now nations their on launches. enhance head five capacity, of pre Legion we And have had, have like We call had I the mentioned, -

didn’t customer. one of customer a out delay aware be are Legion the in international to that in want they it We mix when comes competition, because

what for applications is of the a seeing high really we smaller customers some tech don’t Intel defense what the technology So meet needs of well. what agencies or are are the our as think and for mission the I competitors with lot applications are large

to think we demand is looking Legion are So really in on meet there be the orbit to forward getting unmet marketplace. demand. we to And that able

talks that sneak you. you or I is comments, slide Could analysis. one just the and here one about quick Dan. thank for Okay, Can one five geospatial commercial Great emerging industries data represent two to say others would five all or they over think you of do the pretty those, bigger Maxar you sized next for a opportunity three equally than opportunities the years?

to type but to we we us. data Army to and the why far into year-to-date advance on accuracy Google customers in application this What companies kind for applications not and simulation, are, like You we the them mapping that might know, gaming system now see tech the way, up just customers. growing which now that. coming really put are really year things XX% slide I is on represent applications around based able for think tech compelling their Terrain the with like well application. close seem Metaverse revenue in World be of Right applications, training like, is risk autonomy to not opportunities applications environment companies of indications autonomous and That profit the very And high - a that just like to range that of from we they goes we growth all kind watching being and able the are that really but very simulated than see profile future are others. that going that we are But traditional create to on a our One you a the see XD U.S. management us actually it. strong, using faster large be drones and the the with driver as back automotive, fly in strong as data to doing kind be we us. then are through of are do as work a be to picking and vehicles autonomous, we of But for we

some as across defense the expansion is technology we back excited those Intel establishments commercial see are So and in about to this continue of pretty we forth and transitioning markets.

much Great. Thank you answers. for very the

Tim. Thanks

next Epstein is of from America. from Your question Ron Bank

open. is line Your

tonight. for evening. is actually on Good Ron It Elizabeth

just to relatively competitive there of Earth seen a Black new landscape, that imagery, was the I Earth entrants market, Sky wondering for the whether Spire. little or of them the example, how have it do We of think I angle observation you is also bit some guess. Spire, observation then and but or a a is Planet of given them different lot on

we be of new going mean, aware including is the and companies on. us, I Yes. around very environment what to continue

investments investments like. if $XXX to we will will XX% earlier, are you I to have Legion combined sophisticated I results, that start is been have in growing up of I solutions we as customer most solutions. needs. capable continue, positioned forward guess across have are for investing the I have we emerging at well, And growth roll in also We strong think do with customers, pretty which current here we made the year-to-date, continue towards and look XD bigger make on And And think, optical AI, those we think the numbers. and than we we focused base And facts meeting alpha only most from business constellation our continued now. electro commercial drive orbit ML to demonstrate capabilities, as and Maxar. We we be all to that it what QX think moving XXXX, million with that adding mentioned is and clear the on to

are are are on, we standing is we still continuing strive So forward. going what to not aware of we

aren’t They many part of have new. that is market really on planning aren’t the for activity play been our It Black Sky in years.

Yes.

press a stock a market, that knows and but more have companies decade think mean, fair the been point these we I lot getting it. so or watching are I around a for is Biggs.

and trying and current the We we some like people customer view customer they there. the very looking some of We what out that to percentage take that nice if expect based large are think, terms are we terms we a market see see but intrigued well. of turn we those out of the as future what of to by them of on say fraction take be, to share are

Thank you.

Thanks.

Our next BMO Capital from Moschopoulos Markets. from question is Thanos

line open. Your is

Dan maybe satellites. is I extending the Hi good of afternoon. recent guess on competition question, having when more Airbus launched development their some

centimeter XX sounds So (Ph). regardless. is I there like your the seeing with demands imagery] resolution time, competitor it are you some obviously commentary, for guess strong first [central of another

that parameters changing dynamic all. curious guess there And lot Just other I is revolution. beyond matter that that, to of is the a answers there if just one at customer the of is the

defense international and commercial following intelligence the And has long while, Yes. quite you competitor Thanks and been Thanos. I for Airbus industry. mean, a as been have a both for us

that new. data not the provide and the is satellites they are, and have So They all capable been Neo very for launching service indications customers.

the them We areas. Maxar in will today. with new legacy world are for where from guys with over is we nothing But, to compete really that those continue across the

in So just we are the world. unfold the we are are we that across kind confident of, way seeing

And on just margins. Okay. the

they programs? up just at a that Is Infrastructure into of the there. your inventory QX and I are through call cadence up get of the looking Space but function and in down to QX, state, So, the year-over-year, margin out various we need

increase product is one next have the going Yes. little to by revenues sales driven look are from on to lumpiness more in to a another. It period we create The if quarter-on-quarter. bit just mix you one product quarter

the And on good, is on Yes, Intelligence Earth that then side. infrastructure that the side. is

have going story, there had positive the smaller adjustments, the there then represented of is a on EACs few said quarter, programs, on done. on that one material. when which if number EAC, revenue small in little in And mix third but we It different may look were a is we that quarter. was million pass-through upticks and incur the $X boost there through But third some at then margins. way second pass outstanding, all we you is cost contingency And and both bit dollars was in surely quarter, there, not not costs, it a other still booked the a on similarly to

for what volatility so, creates the together third the quarter put of you And to fourth And compared we the second normal overall, it quarter, margins doubt upwards it you in and or good to for the good would the be at if little of middle really be noise projected still, without through from a the to But trend all relatively look year, that the of fourth bit downwards, quarter. projected past. range quarter. terms

in that direction when either on as event margins be have Thanks. And of, a then neutral going to launches, that finally, probably basis? gross or impact the is terms products short-term at first just all on XX Legion should any

become launch. has operational. upon a to instantly first it Well, It matter of is be not just

ramp then commissioning, a through up. and so will it so, and And in-orbit testing

I’m be be we revenue. will production. gradual it where as higher say it There will It a as on. make - be though margin So, increase can. it will gradual comes of shouldn’t very when trying I fast to

for the scale satellites we Yes, a more lot we infrastructure set The existing of on spend the the nicely won’t cost supports production. the for types in we way are up Legion the constellation infrastructure, of very operations and base. services the provided will products have substantially current into to

XX% bring Thanos it that that will that at million is than faster one as business. to that, XXX the we billion EBITDA XXX thing capacity roughly a services Legion growing Earth I business the Intelligence in bit revenue, XX% runs the would And million the And in other is be online, margins. services of

margin for shipping So us. of is that accretive kind by definition

Great. Thanks guys.

is next Peter from question Truist Your from Osterland Securities.

open. is line Your

Legion. Hey my Mike mission were quarter, for on of resources WorldView assurance the have you some question. adding address out you with Last some internal you good delays and Pete Thanks Ciarmoli. evening for engineering experienced to the taking called is this that

just that other the you company So are improvements how any areas and to as to resources also there ask wanted realize where there those have been Are within been that efficiency have has useful? a progressed. result able

the how we side in think Space Maxar particular would I lots Intel were resources that Intel into from is we advantage Earth we of side, expect, bake as I we say the good of side Space to didn’t got types the larger mission programs going flex Earth the of that we kind company, the for reviews an business side, or about probably forward types do Yes, across on the and of have for nothing the can or thinking that general. depending didn’t to things. software, where organization support program when other engineering on those is assurance we it or a need

forward So for good to I mission teams success. the is see customer cohesively it think, driving operating and

Thanks very much.

Your last from Quilty Chris question from is a Analytics. Quilty

Your line is open.

that Hi have commercial seen. growth you guys. you for the Question on guess pipeline. And I commercial the

it adding of additional products some existing that by coming products that legacy volume from? new buying or more maybe new customers If growth you of is where customers the driven is of recent more spurt? adding growth products, could flavor kind or Is or quantify

Hey, Yes. Chris.

a combination, are it products. good with on that So the existing of we seeing really customers traction new is some

the face So navigation tech And solution they dose how that just the healthy vivid down helps those customers autonomous looking sets. be would really things intrigued information solutions but lock helping to centimeter have growth in also I’m see. not otherwise. not There the then things appealing bear software say capabilities by to solve glad visually just ML HD. providing or masks generally also XD but is bringing seeing like people’s customers being are our exciting XD in that new But really And of the something a them. we of those been, been technology not I conduct to accurate. something that sources XD for capabilities would just that product and I for are highlight there, as worldwide XX are and we And we investing access kind and capabilities, are for highly AI data well problems across would in really XD provided with has so coming that are

certainly see Got defense if incremental you How demand international they may you. Legion visibility any half or customers the indicators there from and online, And whatever XX you with government be commercial the coming good are and to when whatever that look or the place. the you from program something Intel pretty discussions should or in do million side, have in you customer period, your some are of gauge can from hardware that, of point revenue you majority commercial that you the coming ramp, less? are having with putting at

you that of fun when numbers And is it of going who their faster, this teams there grow the a large challenge always will harder. which of drive front to out parse but to very been promise a Trying business, say, commercial in to put market. is is sales

think, XX% seeing I as and we and for together help cloud as have AI something can the year-to-date, ML better growing some and refined got, are snap how environments with we well it XXX products solution. the computing of that traction on

sources disparate a The layered So data. and that. are for But it help and analysts ML about are XD and in is bringing XD excited we there we AI to clouds information, of sense made data solution that ready be point ready are that just not bear. Vricon,

well. So that is really as exciting

to faster, not quite sure run side, On is going one where the which I’m honestly. government

scenario very lines that there excited government future very the side. trend could material And see guess, part be a large like really is are is business, we the commercial where of comprehensive So on to already much our a a the but material, I and businesses.

satellites, if assuming Got square kilometers, satellites on that six what me, you. includes square meters other X, the have Legion got clarification of you that number? where Slide is visit million but excuse capacity, five A clearly

is one the constellation, assumes at July That point. current now right mine I think some

to, assumed market WorldView produce. I the if it that to capacity want we if So the constellation activation Legions. constellation got plus you guess, have the that the signals

or those of on fuel performance being update where currently currently typically system’s the the the in And you lifecycle and you by aspects assume and is driven power now satellites satellites, XX-K, whatnot? the a technical which legacy on

good. this, which past, have four table simulation None for renew didn’t several are would that and you noticed I We limited, haven’t guess, I basically do we that update of all fuel an engineering satellites. is just It amortization the I depreciation those. for times is as the insurance made them in have about and note is schedules. think before extended annually on remarks I what just our we

as year, no have last were material coverage had premiums. to and got we We the the really same levels there changes

on gives in that the year expect longer some that them probably So space. orbit, we to satellites every to continue last expectation we

we question is one to levels of But answer. going story you position? to well recent not outlook rates. about potential today, funding the the Let’s as been unsatisfactory you maybe in the as But a the are to unclear talking rumors happening an about phenomenologies. traditional some insurance detailed and I what your get get some we did they are or it into are going whether get EOCL and still optical quarter in because around issues with know for news process. all new do a funding answer feel Final is ago EOCL

was to two the morning, And pretty follows over EOCL. past of in Xrd, think, the Government years, meet needs. [Pete XXXX issued U.S. confident his as see they and the levels to said commercial this press well in are seeing for funding nation’s review the out December awards. expanded and responses their are by studies we I the The we first (Ph) Moon] calendar due do for quarter of NRO, industry the for the this RFP the this to consistent sending with continue both And what as expectations for use an by DoD expect remarks Yes. as in community. Actually morning intelligence extensive requirements

a of lot spend time Capitol on I So Hill.

U.S. the taxpayers. deal there what good strong of it the support for a is and fact provides that is EOCL it a program, think for lot I the

Awesome. Thank you.

Thanks, Chris.

got have we one think more. I time for

Moeller is from question from last Canaccord. Your Austin

open. is line Your

to if have fleet I might just buy Good for announce XX know the about and plan to is what Infrastructure satellites been be Maxar was recent evening, you that the been then next I also this to sometime planning Intelsat have don’t on news something geo already. by year. won that non-geostationary And of that they you Dan. asked Space next early year, think that if that But satellite percentage the business wondering pursue. planning was has report

question, got mission solutions. try them with to to with and history a for their meet Intelsat and Thanks have I continue engage we the long guess, closely

had of performance other satellites, the the strong we keep C-band of will article it, with keep aware We long-term solutions happy that Intelsat. aspect note a bid do have referenced allow compete that, that some comments to article no that winning in are customer continue from the of us to that than are on We them. awards, defined really, particular for hard software we the and very ones and business are the to technical on work

Okay, you. great. Thank

you. Thank

comments. here closing I’m Gursky additional Mr. or turn back the to any for call to Jason for And at now I question, like showing time. this would the

you, in all holiday call. season. Thanks dialing to look Thank your you operator. interest Great. then, enjoy year for fourth and early next reconnecting in earnings our Until quarter forward We on Maxar. all for with to

have this participation, today’s does a you conclude day. for Ladies conference. and your great Thank gentlemen, and