Iridium Communications reported fiscal 2024 fourth-quarter revenue of $213 million, up 9 percent from the prior-year period, and saw its total revenue for the full year increase 5 percent to $830.7 million.
In an earnings release published Thursday, the McLean, Virginia-based satellite communications company said Q4 and full-year net income were $36.3 million and $112.8 million, respectively.
Operational earnings before interest, taxes, depreciation and amortization, or EBITDA, for the fourth quarter was $117.1 million, reflecting a 3 percent year-over-year increase from the same period the previous year. Meanwhile, operational EBITDA for 2024 was $470.6 million, up 2 percent from the prior year.
In 2024, the company returned a record $469 million to shareholders through dividends and share repurchases.
US Government Segment’s Results
Iridium’s U.S. government business saw its Q4 service revenue rise 1 percent to $26.8 million, reflecting a contractual rate increase in the company’s Enhanced Mobile Satellite Services, or EMSS, contract.
EMSS is a seven-year, $738.5 million fixed-price contract with the U.S. Space Force covering specified satellite airtime services, including unlimited global standard and secure voice, fax, paging, Short Burst Data and Distributed Tactical Communication System services for Department of Defense and other federal government subscribers. The contract was signed in September 2019.
The company ended the quarter with 141,000 government subscribers with internet-of-things data subscribers accounting for 56 percent of that number.
As of Dec. 31, 2024, the company had 62,000 government voice and data subscribers.
Iridium’s Q4 engineering and support revenue grew 20 percent to $37.4 million, driven by increasing activity with the U.S. government.
CEO on Iridium’s Market Position
At an earnings call Thursday, Iridium CEO Matt Desch expressed optimism on the satcom company’s market potential and position.
“We continue to feel very good about Iridium’s market position and potential, as well as our ability to achieve the long-term guidance we shared during Investor Day in 2023 to deliver $1 billion in service revenue in 2030 and generate approximately $3 billion in free cash flow over that period. Overall, 2024 was a transition year for our company,” the 11-time Wash100 awardee told analysts.
When it comes to Starlink’s disruption of very small aperture terminal, or VSAT, market and entry into the direct-to-device market, the chief executive noted that Iridium is “complementary” to Starlink’s effort in the two areas.
“We are focused on safety and mission-critical applications and operating completely different spectrum than Starlink,” Desch added.
The 2025 Wash100 awardee said he expects 2025 to be a year of growth for the company.
“We will continue to invest in new products and services, return capital to our shareholders and grow our partnerships and business. Perhaps most important to long-term investors, you will see Iridium invest in longer-term growth opportunities like Iridium NTN Direct and continue to generate strong free cash flow,” he added.
Growing Work With SDA
During the call, Iridium Chief Financial Officer Vincent O’Neill cited the 20 percent growth in engineering and support revenue in the fourth quarter, saying the increase reflects new contract awards and the company’s growing work with the Space Development Agency.
“Our work with the SDA remains highly strategic and aligns Iridium closely with the U.S. government’s long-term space priorities,” the CFO added.
