Terran Orbital Corporation, together with its wholly-owned subsidiaries, operates as a manufacturer of satellite products primarily serving the aerospace and defense industries.
The company provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the company's military, civil, and commercial customers.
The company's operations are primarily performed in the U.S. The company's international...
Terran Orbital Corporation, together with its wholly-owned subsidiaries, operates as a manufacturer of satellite products primarily serving the aerospace and defense industries.
The company provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the company's military, civil, and commercial customers.
The company's operations are primarily performed in the U.S. The company's international operations are primarily performed by its foreign subsidiary based in Torino, Italy.
Products and Services
The company is an end-to-end satellite solutions provider with the following product and service offerings:
Mission Support: The company provides the integrated design, manufacture, and assembly of satellites suitable for the specific needs of the company's customers' missions. The company's satellite solutions are designed by its staff of engineers located in Irvine, California, Melbourne, Florida and Torino, Italy and manufactured and assembled primarily in the company's facilities located in Irvine, California, Santa Maria, California, and Torino, Italy.
Launch Support Services: The company assists customers with the launch of satellites into space by identifying and securing launch opportunities with launch providers, as well as coordinating and managing the activities leading up to the launch event on behalf of the company's customers.
Operations Services: The company manages, operates, and provides information from satellites that are on-orbit on behalf of the company's customers from its in-house mission operations centers located in Irvine, California and Torino, Italy and via the company's fully integrated international ground communications network using the company's proprietary software both on the satellite and throughout the company's ground infrastructure.
Studies, Design and Other Services: The company performs professional engineering feasibility studies and preliminary design services on behalf of the company's customers.
Competition
The company's competitors include: Blue Canyon Technologies (a subsidiary of Raytheon Technologies Corporation), Millennium Space Systems (a subsidiary of The Boeing Company), General Atomics Defense (a subsidiary of General Atomics), Northrop Grumman Corporation, Airbus, Maxar Technologies, Inc., Ball Aerospace, Rocket Lab USA, Inc., Sierra Space Corporation, MDA Ltd., Astranis Space Technologies Corp., LeoStella, LLC, Spire Global, Inc., and York Space Systems.
Strategic Cooperation Agreement with Lockheed Martin Corporation
On October 31, 2022, the company entered into a new Strategic Cooperation Agreement (the '2022 SCA') with Lockheed Martin, pursuant to which the parties have agreed to continue to share in business development opportunities and work collaboratively on small satellite and other aerospace and defense opportunities and ventures.
The company has relationships with several launch providers, including Space Exploration Technologies Corp., built through years of experience in securing launch vehicle opportunities and launching satellites for the company's customers around the world. The company's satellite deployers can be tailored to meet customers' specific launch program needs and to fit on most launch vehicles.
Growth Strategy
The company is actively executing on its growth initiatives in order to position itself to be awarded larger constellation contracts with recurring revenue opportunities.
The company's growth initiatives include, but are not limited to, securing bigger contracts that involve large constellations of satellites; increasing labor capacity and efficiency, including adding engineering and assembly technician headcount; vertically integrating the company's production process by bringing certain component manufacturing processes in-house; expansion and industrialization of manufacturing and assembly facilities in Irvine, California and adding testing and automation equipment to improve manufacturing efficiency, quality and throughput; and focusing on and investment in the innovation and development of existing and new satellite components and subsystems, payloads, and flight and ground software applications, including the development of next-generation components to improve performance and manufacturability.
Customers and Concentrations
The company's direct and end customers include (i) the U.S. Government defense, intelligence, and civil agencies such as the U.S. Department of Defense (the 'DoD'), the Space Development Agency (the 'SDA'), and the National Aeronautics and Space Administration ('NASA'); (ii) commercial aerospace and defense prime contractors, such as Lockheed Martin (Lockheed Martin Corporation); (iii) foreign government and civil agencies, such as the European Space Agency ('ESA'); and (iv) other and foreign commercial companies that operate in the space industry.
A small number of customers and contracts historically have represented a significant portion of the company's consolidated revenue. Lockheed Martin represented approximately 81% of the company's consolidated revenue during 2023. As of December 31, 2023, a single commercial program represented approximately 88% of the company's backlog and programs associated with Lockheed Martin represented approximately 8% of the company's backlog.
In addition, the majority (when excluding a single international commercial program) of the company's contracts are related to the U.S. Government programs in which the company operates as a prime contractor or a subcontractor. The U.S. Government programs represented approximately 84% of the company's consolidated revenue during 2023. As of December 31, 2023, approximately 8% of the company's backlog was related to the U.S. Government programs, all of which the U.S. Government has the ability to terminate for convenience.
Research and Development
The company's research and development expenses were $21.3 million during 2023.
Government Regulation and Other Regulatory Matters
A substantial portion of the company's revenue is earned as a subcontractor to third parties ultimately serving the U.S. Government.
The company's U.S. Government contracts generally are subject to the Federal Acquisition Regulation ('FAR'), which sets forth policies, procedures and requirements for the acquisition of goods and services by the U.S. Government; department-specific regulations that supplement the FAR, such as the DoD's Defense Federal Acquisition Regulation Supplement; and other applicable laws and regulations.
The operation of the company's U.S. earth stations is subject to various license conditions, as well as the technical and operational requirements of the Federal Communications Commission's (FCC's) rules and regulations.
The company's business is subject to stringent U.S. import and export control laws, including the ITAR, administered by the U.S. Department of State, Bureau of Political Military Affairs' directorate of Defense Trade controls ('DDTC'), and Export Administration Regulations ('EAR'), administered by the Bureau of Industry and Security ('BIS').
The company's customer base includes domestic and international governmental and commercial entities.
History
Terran Orbital Corporation was founded in 2013.
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