Iridium Communications Inc. (NASDAQ: IRDM) has been awarded a five‑year indefinite delivery/indefinite quantity (IDIQ) contract from the United States Space Force’s Space Systems Command Commercial Space Office. The award, worth up to $85.8 million, will fund technological refreshes, lifecycle upgrades and security enhancements for the Enhanced Mobile Satellite Services (EMSS) Service Center, Technical Support Center and Defense Ground Station, ensuring the L‑band network remains resilient for mission‑critical operations.
The contract extends Iridium’s long‑standing partnership with the Department of Defense. It follows the 2019 Gateway Evolution contract and sits alongside two other core EMSS agreements—the Airtime Contract and the Capabilities and Security Sustainment Services (ECS3) contract awarded in April 2024. By supporting the Proliferated Warfighter Space Architecture (PWSA) Tranche 1 ground operations, the deal positions Iridium as a key enabler of the Space Force’s next‑generation warfighter communications.
Iridium’s Q3 2025 results provide context for the new contract. The company reported $226.9 million in revenue, up 7% year‑over‑year, and $37.1 million in net income, translating to earnings per share of $0.35 versus $0.21 in Q3 2024. Commercial service revenue accounted for 61% of total sales at $138.3 million, with IoT data revenue rising 7%. The IDIQ contract adds a recurring revenue stream that will be recognized as task orders are issued, reinforcing the company’s cash‑flow stability and supporting its dividend policy.
Management highlighted the strategic importance of the award. Executive Vice President Scott Scheimreif said the contract “will continue to innovate and deliver resilient, secure, and highly reliable mission‑critical communications.” CEO Matt Desch emphasized disciplined execution and a focus on growth markets—government, regulated industries and critical infrastructure—while noting that strong cash flow underpins the company’s dividend increases and long‑term value creation.
The contract, combined with Iridium’s 2024 acquisition of Satelles, strengthens its positioning in positioning, navigation, and timing (PNT) services for defense customers. It also signals confidence from the Space Force in Iridium’s ground‑infrastructure modernization, potentially accelerating future task orders and reinforcing the company’s competitive edge in the satellite‑communications market.
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