Intuitive Machines shares skyrocketed by more than 50% on Wednesday morning after the company announced a groundbreaking $4.82 billion contract awarded by NASA. This contract focuses on providing critical navigation and communication services for missions in the “near space region,” which extends from Earth’s surface to beyond the Moon.
Under the terms of the agreement, which starts on October 1 and runs through September 30, 2029, Intuitive Machines will deploy lunar relay satellites and deliver communication and navigation services to support NASA’s Artemis campaign. The Artemis mission is central to NASA’s efforts to return astronauts to the Moon and establish a sustainable lunar presence.
Key Deal Details:
Value: The contract has a potential value of $4.82 billion over 10 years.
Services: Intuitive Machines will support NASA by deploying satellites and communication tools for lunar missions.
Duration: Five-year base period, with an option for an additional five years.
“This contract marks an inflection point in Intuitive Machines’ leadership in space communications and navigation,” said Steve Altemus, Chief Executive of Intuitive Machines. “We’re thrilled to partner with NASA to support the Artemis campaign and our joint efforts to expand the lunar economy.”
Impact on Intuitive Machines’ Stock
The announcement had an immediate positive impact on Intuitive Machines (NASDAQ: LUNR), which surged 53% during premarket trading on Wednesday. This followed a previous 5.6% drop on Tuesday, where the stock closed at $5.40. In February 2023, LUNR shares reached a high of $13.25 after completing a reverse merger with Inflection Point Acquisition Corp., a special purpose acquisition company (SPAC).
Intuitive Machines has made significant strides in lunar exploration. In February, its Odysseus spacecraft became the first U.S. spacecraft to land on the Moon in half a century, despite facing operational challenges. The company is focused on building a system that provides lunar surface access, lunar orbit delivery, and communication at lunar distances.
Analysts’ Reactions and Future Outlook
The $4.82 billion NASA contract has established Intuitive Machines as a critical player in the future of lunar exploration, according to analysts. Benchmark analysts noted that the contract positions Intuitive Machines as “the backbone of lunar data transmission,” further highlighting the company’s growing role in the space industry.
The deal also provides Intuitive Machines with long-term financial stability, something that Benchmark analysts emphasized many of its space sector competitors lack. Benchmark maintains a buy rating for LUNR, with a price target of $10, representing an 85% upside from Tuesday’s closing price.
With this new contract and the growing momentum behind NASA’s Artemis program, Intuitive Machines is set to play a pivotal role in the future of lunar exploration and long-term space operations.
