Overview

• Satellite service provider's Q4 revenue missed analyst expectations, net income decreased yr/yr

• Service revenue grew 3% in Q4, driven by IoT data and voice services

• Equipment revenue declined 21% in Q4, impacting overall revenue

Outlook

• Iridium projects 2026 service revenue growth of flat to 2%

• Company expects 2026 OEBITDA between $480 mln and $490 mln

• Iridium aims for net leverage at or below 3.0 times EBITDA by end of 2026

Result Drivers

• IOT DATA GROWTH - IoT data revenue increased 11% yr/yr, contributing significantly to service revenue growth

• SERVICE REVENUE INCREASE - Service revenue rose 3% in Q4, driven by IoT data and voice service growth

• EQUIPMENT REVENUE DECLINE - Equipment revenue fell 21% yr/yr, impacting total revenue

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for Iridium Communications Inc is $25.00, about 35.4% above its February 11 closing price of $18.46

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn4NLxtha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)