York Space Systems surges 33% on FY25 revenue growth
Aerospace contractor reports 52% sales increase to $386 million, narrows losses as defense spending fuels growth
York Space Systems shares soared 33% to $23.47 on Friday after the aerospace and defense contractor reported strong fiscal year 2025 results, including a 52% jump in revenue and a narrowed net loss that beat investor expectations.
The Denver-based company reported full-year revenue of $386 million, up from $254 million in 2024, driven primarily by progress on two Transport Layer Tranche 2 contracts for the U.S. Space Development Agency. Gross profit surged 133% to $75.5 million, with margins expanding 6.8 percentage points to 19.5%, demonstrating improved operational efficiency as the company scales production of satellite platforms.
York Space Systems reduced its net loss by 15% year-over-year to approximately $84.5 million, while adjusted EBITDA improved 81% to negative $8.3 million. The progress toward profitability came as the company converted $319 million of its order backlog into revenue during 2025, leaving it with a remaining backlog of $543 million as of December 31.
"2025 was a defining year for York, establishing us as the leading provider to the Department of Defense's Proliferated Warfighter Space Architecture," said CEO Dirk Wallinger. The company delivered 21 Tranche 1 Transport Layer satellites to orbit and conducted more than 100 mission demonstrations for NASA's BARD mission during the year.
The earnings release comes at a pivotal moment for York Space Systems, which completed its initial public offering on January 30, raising approximately $583 million in gross proceeds. The company reported liquidity of $895.4 million post-IPO, providing substantial capital to fund operations and contract execution through 2027.
Looking ahead, York Space Systems provided FY2026 revenue guidance of $545 million to $595 million, with more than 70% expected to come from existing backlog. The company completed the Critical Design Review for its $617 million Tranche 2 Transport Layer Alpha contract covering 62 satellites, with launches scheduled to begin by September 2026.
The company also secured a $170 million prototype agreement for 10 Tranche 2 Transport Layer Gamma satellites, successfully completing the System Requirements Review. In addition to government work, York finalized a $187 million commercial contract for a constellation of over 20 satellites in February.
Recent strategic moves include the acquisition of Orbion Space Technology in March, adding flight-proven electric propulsion systems to York's supply chain. The company previously acquired ATLAS Space Operations, integrating a global ground station network with its software-defined operations platform.
Analyst coverage has been mixed since the company's public debut. Raymond James initiated coverage with an "Outperform" rating on February 23, while Goldman Sachs began coverage at "Neutral" the same day. Needham recently cut its price target to $33, according to Seeking Alpha.
Despite Friday's surge, York Space Systems shares remain down 34.8% over the past 12 months and are trading near the lower end of their 52-week range of $16.93 to $38.47. The stock's relative strength index sits at 22.81, suggesting deeply oversold conditions prior to the earnings rally.
The company's performance reflects broader trends in the defense and aerospace sector, where increased national security spending and the proliferation of low-Earth orbit satellite constellations have created opportunities for specialized contractors. York Space Systems' focus on modular satellite platforms and rapid manufacturing capabilities positions it to compete against larger players in the military space market.