The Bull Case For Iridium Communications (IRDM) Could Change Following New U.S. Space Force Ground Systems Deal – Learn Why

• In recent days, Iridium Communications disclosed that it secured a 5-year IDIQ contract from the U.S. Space Force’s Space Systems Command Commercial Space Office, with a potential value of up to US$85.8 million, to upgrade and secure key Enhanced Mobile Satellite Services ground facilities.
• This follow-on SITH agreement to Iridium’s 2019 Gateway Evolution Contract deepens its role in U.S. defense communications infrastructure and supports the Proliferated Warfighter Space Architecture’s ground Operations and Integration segment.
• We’ll now examine how this new U.S. Space Force contract, focused on upgrading mission-critical ground infrastructure, may influence Iridium’s broader investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Iridium Communications Investment Narrative Recap

To own Iridium, you need to believe in resilient, mission-critical satellite services that can steadily grow despite competitive and technology shifts. The new US$85.8 million Space Force IDIQ looks supportive but not transformative for near term revenue, while the biggest near term risk remains slowing service growth in IoT and maritime, which already contributed to the company trimming its 2025 service revenue outlook.

The recently announced Vodafone IoT partnership around Iridium NTN Direct feels especially relevant here, as it illustrates how Iridium is trying to convert rising demand for global, standards based connectivity into renewed growth in IoT services, a key catalyst if the segment is to re accelerate from its recent slowdown.

Yet for all the appeal of government contracts and new IoT tie ups, investors still need to weigh the growing threat from emerging direct to device competitors...

Read the full narrative on Iridium Communications (it's free!)

Iridium Communications' narrative projects $982.9 million revenue and $174.8 million earnings by 2028. This requires 4.7% yearly revenue growth and a $61.6 million earnings increase from $113.2 million today.

Uncover how Iridium Communications' forecasts yield a $29.75 fair value, a 78% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community cluster between US$25 and about US$69, underlining how differently you might view Iridium’s potential. Set those views against the recent guidance cut and rising competitive risks, and it becomes even more important to compare multiple perspectives before deciding how this business could fit your portfolio.

Explore 7 other fair value estimates on Iridium Communications - why the stock might be worth just $25.00!

Build Your Own Iridium Communications Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Iridium Communications research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Iridium Communications research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Iridium Communications' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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