管理層發言
Hello, everyone. Thank you for joining us, and welcome to the York Space Systems Second Quarter 2026 Earnings Call. I will now hand the conference over to Christopher Evenden, Vice President of Investor Relations. Chris? Please go ahead.
Hello, everyone, and welcome to York Space Systems Second Quarter 2026 Earnings Call. With me on the line are Dirk Wallinger, our CEO; and Brian Frantz, our Chief Accounting Officer and Interim CFO. Please note that our earnings release is available at ir.yorksystems.com. In addition, we have posted an earnings presentation to accompany our prepared remarks on the same website. Lastly, after this call, we will post a transcript of our prepared remarks and an audio replay of this call. For those listening to the rebroadcast of this call, we remind you that the remarks made herein are as of today, Thursday, August 13, 2026, and have not been updated subsequent to this call. During this call, we will refer to certain non-GAAP measures. A reconciliation of these measures to the most directly comparable GAAP measures can be found in our earnings press release. We will also make statements that are considered forward looking, including those related to our 2026 outlook, future revenue and growth prospects, anticipated award timing, pipeline, award opportunities, backlog, M&A strategy, inventory building and the benefits of our acquisitions. Listeners are cautioned that our forward-looking statements involve certain assumptions, and are inherently subject to risks and uncertainties that can cause our actual results to differ materially from our current expectations. We advise listeners to review the risk factors and other discussions included in our 2025 annual report on Form 10-K, the 2026 Form 10-Qs and our other filings with the SEC. After the completion of our prepared remarks, we will open the call for questions. Now I'll turn the call over to Dirk.
Thanks, Chris. Hello, and welcome to York's Second Quarter 2026 Earnings Call. I appreciate you taking the time to join us. Before we get into the highlights from the quarter, I want to take a moment to introduce Brian Frantz, who will be stepping into the role of Interim Chief Financial Officer at York. Brian joined us as the Chief Accounting Officer and played a central role in our transition to a public company with direct responsibilities for financial reporting, internal controls and SEC compliance. Brian brings more than three decades of financial leadership experience across public and private companies, including prior service as CFO of RE/MAX International and Principal Financial Officer of Intrepid Potash. You'll hear from Brian on the quarter's financials a bit later in the call. Q2 was another strong quarter of execution for York. We launched 21 more satellites, added new customers and expanded our portfolio mission capabilities. Revenue for the quarter was $92.5 million, up 10% year-over-year. Our backlog stood at $592 million and potential unawarded contracts reached $1.85 billion. Our identified pipeline now exceeds $11.5 billion. York's earnings deck describes these metrics, including potential on awarded contracts in more detail. In the first half of 2026, we secured eight contract wins at an 88% win rate on our proposals. We added four more contracts in this quarter with two task order wins and another IDIQ add in the last 45 days alone, a reflection of both the breadth of our capabilities and the confidence customers place in our performance on orbit. We have expanded our national security customer base, including three new IDIQ vehicles, expanding our contracts to cover 10 different mission areas. Those IDIQs have generated two delivery orders, an early signal of how quickly today's onboarding contracts are now converting into real mission work. A few of these wins are worth calling out in more detail. In July, York was awarded a task order contract on one of our highly selective IDIQs to deliver military system capabilities built on commercial technologies. That award reinforces our position as one of the only providers with an on-orbit performance record for operational systems and the commercial manufacturing scale required to support the resilient multi-vendor supply base the government is asking for. In early August, we were awarded another IDIQ task order for an on-orbit demonstration. The rapid conversion from IDIQ selection to multiple funded delivery order contracts in a matter of weeks reflects real near-term demand for York's proven in-production spacecraft as the government scales their space-based architecture. We are encouraged that the government remains committed to a resilient supply base for their architectures, which strengthens the industrial base and delivers better outcomes for the warfighter. Our proven performance in orbit and ability to deliver at scale for operational systems is transitioning well into contract orders for next-generation systems that are aligned with current budget allocations. Resilient, assured or jam-resistant communications are increasingly becoming an in-theater need, and that need is only expected to grow as unmanned systems play a more decisive role in modern conflict. Their effectiveness and survivability depend directly on assured resilient communications across every phase of the mission in an environment where air superiority is denied. Space will be the enabling network for those communications and, by extension, the foundation of the defense architectures that will define the next era of warfighting. The character of conflict has changed and the architectures underneath it have to change with it. Whoever controls the assured communication systems controls the fight. That is why jam-resistant communications and alternative PNT matter, and it's why York is investing where we are. We are built for a warfighter who will operate across manned and unmanned formations, and we intend to be the prime that delivers the space-based infrastructure they will count on to win. The changing character of conflict leads directly into our acquisition of ALL.SPACE completed in July. ALL.SPACE, a leader in assured communications terminals, extends our reach into adjacent markets and positions us to capture the accelerating demand for unmanned systems across every domain. ALL.SPACE also brings established contracts with the Army and Navy with momentum already carrying into a new DIU contract and a $6 million follow-on order for 23 additional terminals from the Navy. ALL.SPACE and our other subsidiaries are expected to contribute roughly 10% to 15% of 2026 revenue. In July, we were selected by the U.S. Space Force for the NITE-STAR IDIQ, further extending our mission portfolio capabilities. NITE-STAR positions us to compete for task orders, integrating our satellite platforms with the global ground network operated by ATLAS Space Operations, a wholly owned subsidiary of York. Our expanding portfolio of mission types and capabilities positions York to compete for a broader set of opportunities. Roughly 23% of our contracts sit in network communications and the remaining 77% address non-communications mission capabilities like AMTI, advanced fire control, remote proximity operations, missile warning, missile track and more. That breadth aligns directly with where defense budgets are planned and enables York to compete across the full range of programs shaping the next generation of defense. Shifting to the commercial side, we continue to see commercial opportunities increasing following our constellation win earlier this year and anticipate commercial systems becoming a larger portion of our revenue potential and growth trajectory. Our demonstrated ability to deliver at scale at price points unmatched by competitors continues to make us an attractive partner in the commercial sector. Shifting to execution. This quarter York became the first performer to complete its Tranche 1 Transport Layer deliveries, launching a second dedicated Falcon 9 that put 21 York-built satellites on orbit and bringing York's program record to 42 for 42, ahead of every other awardee. That's a track record customers see, and it's showing up directly in awards we're winning today. To date, York has put 55 satellites on orbit across eight launches, and today, we are actively operating five unique mission sets and three constellations. That combination of scale and mission breadth positions York as the new space industry leader by a number of active missions, range of capabilities on orbit and military systems operating in space today. Additional highlights from the quarter include our Nemesis mission, which cleared its Delta Critical Design Review and currently remains on track for delivery in Q4. Nemesis extends York's prime integration model into GEO in support of space domain awareness missions and reinforces our ability to prime, integrate and deliver across orbital regimes. On the Dragoon program, we completed our initial mission objectives in a matter of months, demonstrating York's ability to deliver operationally relevant tactical communications at speed and scale. And we completed our acquisition of Solestial, a leading provider of next-generation space solar technology. Solestial secures domestic control of a critical element of our supply chain currently controlled by China, reduces geopolitical exposure across our manufacturing base and positions us to leverage advanced solar capabilities as a differentiator of future spacecraft designs. Before I turn it over to Brian to review the financials in depth, I want to speak briefly to what we're seeing across the broader U.S. government acquisition landscape and what it means for York's growth trajectory. Through 2026 and increasingly in Q2, we've observed a meaningful shift in how the U.S. government is acquiring spacecraft systems, moving away from a rapid succession of larger RFPs to an IDIQ approach that is slow to start, but often faster to accelerate task orders later. This approach has a longer cycle to award the IDIQs initially, but once IDIQs are awarded, task orders can be awarded in a more rapid succession without the need for follow-on competitive award cycles. They generally pursue smaller on-ramp task order contracts to start, but can lead to multibillion dollar opportunities later for true operational systems. Highly selective IDIQs are more desirable as the budget size and smaller vendor pool represents significant revenue potential for awardees on discriminating IDIQs. York has been awarded six contracts under this new approach in 2026 alone, and we view them as significant drivers of growth into 2027, as the follow-on programs advance. York's contract wins range across very large swaths of capabilities that align well with the current budget allocations we are seeing. This shift is changing our expectations of award timing. And as a result, we are revising our full year 2026 revenue guidance. Brian will walk through the specifics in a moment. With our backlog and potential unawarded contracts totaling $1.85 billion and an identified pipeline exceeding $11.5 billion, the opportunity in front of us is substantial. To wrap up, York is leading the new space industry, actively operating five unique missions and three constellations simultaneously. We are executing consistently for our customers, improving our hardware on-orbit and operational missions. We have secured eight new contracts in 2026 alone at an 88% win rate and we continue to expand our capabilities in line with where defense budgets are being planned. The opportunity in front of us is substantial, and York is positioned to capture it and deliver meaningful long-term value. With that, I'll turn it over to Brian.
Thank you, Dirk. As Dirk discussed, we executed well during the second quarter, closed two acquisitions since our last call and added more new customers that have the potential to be very large in 2027 and 2028. Our revenue for the quarter was $92.5 million, up $8.7 million or 10% compared to the same quarter in the prior year. The increase was primarily driven by our revenues from acquisitions completed in the second half of 2025 and in the first half of 2026 as well as our new commercial contract, which we announced earlier this year. Revenue from our major government programs remained relatively flat year-on-year. Gross margin was 24% in the current year quarter, up 13 percentage points from the year-ago quarter, which was negatively impacted by an EAC adjustment. Our second quarter 2026 gross margin also reflects higher gross margin contribution from our post-launch operations and support work. We expect our gross margin for the balance of the year to remain in the mid-20% range. Similarly, gross margin dollars were $22.2 million in the quarter, up $9.5 million from the year-ago quarter, driven by improved margin percent on a larger revenue figure. Contribution margin expanded 18 percentage points to 42% in the second quarter, driven by a richer mix of newer vintage programs, which tend to have higher margins than our older vintage programs. Our direct materials expenses decreased in Q2 2026 over the second quarter of 2025 as we approach the end of our production for our Tranche 1 Transport Layer satellites, which in its post-launch phase is incurring mostly labor costs. As we now have all 42 of these satellites successfully in orbit and healthy, our operations and sustainment revenues will increase and they have a higher contribution margin than the company average. Contribution margin dollars almost doubled, growing to $39.3 million from $20.3 million last year driven by the aforementioned mix and the EAC adjustment in the second quarter of 2025. Turning to operating expenses. Our SG&A plus R&D expenses increased 52% compared to the prior year quarter. This was primarily driven by an increase in overall headcount, increases in overhead related to the public company uplift and incremental salaries and costs related to the acquisitions of ATLAS, Orbion and, to a lesser degree, Solestial, which closed in June of 2026. Naturally, we will see an increase in SG&A expenses in the second half related to our acquisition of ALL.SPACE, which occurred in July. Most of the increase in our public company SG&A infrastructure is complete and we expect those costs to only increase slightly through the rest of 2026. Adjusted EBITDA for the quarter was a loss of $9.5 million, slightly elevated from the $8.9 million loss from the prior year quarter due to increased operating expenses offsetting profitability growth in our gross margins. Our liquidity remains strong. As of June 30, we had cash and cash equivalents of $534 million, and our $150 million revolving credit facility remains fully available to us for total liquidity of $684 million. I would note that we used $155 million of our cash subsequent to quarter end as we closed the ALL.SPACE acquisition. Our backlog stood at $592 million as of June 30, down 8% from $642 million at the end of the first quarter, but up 9% from the start of the year, primarily due to our new commercial contract as well as a contract modification that occurred in the second quarter of 2026. Subsequent to quarter end, we also received task orders related to one of our IDIQs, and we believe those task orders will lead to larger awards in 2027. As Dirk mentioned earlier, we are bringing down our full year 2026 revenue guidance to a range of $375 million to $405 million. This new midpoint of $390 million is $180 million below our prior midpoint of $570 million. As we said on our previous call, about 30% of the prior midpoint of $570 million was new business. Given the contract environment that Dirk referenced, we had removed the new business from our guidance for the rest of the year. The remainder relates to supply chain issues where revenue is moving to the right into 2027, which is partially offset by revenue from our new acquisitions. We believe the rightward shift of 2026 revenue plus the eight contracts we've already won so far this year position us to take significant strides in 2027 as the government looks to accelerate capabilities with proven providers. Our reduction in revenue guidance will also negatively impact adjusted EBITDA in the second half. Further, the acquisition of Solestial, which will bolster our supply chain certainty of solar cells, and the acquisition of ALL.SPACE to expand our total addressable market will further impact adjusted EBITDA in the second half. And now I'll hand it back to Dirk for a quick summary.
Thanks, Brian. So to conclude, the U.S. government has shifted their acquisition approach from a rapid succession of larger RFPs to an IDIQ approach that is slow to start, but faster to accelerate task orders later. This acquisition approach has shifted significant contributions to revenue on our $11.5 billion identified pipeline into the 2027 time frame. We are winning opportunities with an 88% win rate and eight new contracts in 2026. We have added four more contracts this quarter with two task order wins and another IDIQ add in the past 1.5 months alone. With our new wins, we have increased York's potential unawarded contracts which now exceeds $1.85 billion. York's very broad range of proven capabilities position us well and are aligned with anticipated budgets. We remain bullish on our ability to win across acquisition approaches, budgets and mission capabilities with our proven production and ability to deliver missions successfully. And now I'll hand it back to the operator for questions.
分析師問答
Your first question comes from the line of John Godyn with Citi.
This is Bradley Oster on for John Godyn. So I want to dial in on the government contracts you secured this year under the new acquisition approach. Could you just talk a little bit more about what your expectations are on the shape and potential size of these over the fullness of time as you convert them to larger operational programs?
Sure. So I think the best indicator of what you can expect from size is probably the '27 President's budget in the sense that it's not going to provide the exact numbers, but it's going to give you an idea of generally how much they are looking to spend on Space Data Network, how much they are looking to spend on missile track and missile warning, etc. So I think that's the best way to look at what these OTAs could eventually lead to. Right now, the contract awards are coming off of '25 and '26 budgets. But like I said, the '27 budget gives you some idea of trajectory. Some of those wins were for the Space Data Network and so that's a pretty easy map to see kind of what the government is looking to spend on the Space Data Network in the coming years and that became public recently, like 10 minutes before this call. We'll expand on that a little bit more with our own PR in the coming days as that becomes approved from the customer as well. But I think that's the best way to look at it.
Got it. I appreciate that color. And I just want to circle up on the $11.5 billion pipeline opportunities from the government contracts you're looking at today. Is this something that you can organically participate in today? Or would more potential M&A movements be needed to capture even bigger chunks of that pipeline for you guys?
Yes. So right now, that pipeline is identified pipeline. Those are specific opportunities that we are pursuing with our capabilities today with no need for further acquisition or any type of M&A activity. So those are specifically identified opportunities. I think the earnings deck will be good in the sense that it can kind of show how much of those are commercial, how much of those are classified and how much of those are government non-classified as well. So I think that might be a good reference to get an idea of where we sit, but there's no further acquisition required to pursue those opportunities.
Your next question comes from the line of Seth Seifman with JPMorgan.
This is Alex on for Seth. So I wanted to ask — I think you kind of alluded to it a little bit in the prepared remarks — last quarter, you talked about how 70% of your revenue you expected to be covered by your backlog for the rest of the year. But maybe just to put a finer point on what's changed: if I take the Q2 sales result and the new implied second-half sales guidance, it seems to imply that the dollar value of the backlog that you guys expected to convert to sales this year is now lower. Curious — I know you mentioned the supply chain — but curious if you could kind of help level set us there in terms of how much the supply chain is contributing or if there's any kind of changed outlook in terms of how to think about how much backlog you can convert to sales this year. And obviously, there's also some added revenue from the acquisitions as well. So maybe if you can kind of just walk through those items a little bit more?
Sure. Thanks, Alex. I'll give the 10,000-foot perspective and then I'll hand it over to Brian for the more specifics. Generally, what's occurred is that there was more of a rapid succession of RFPs and about 30% of that we thought we would be able to contribute to revenue in '26. Because of the way that revenue is recognized — essentially as a function of cost — it's more linear. When you win a satellite program, you'll recognize that revenue over the course of three years. So when you win a big satellite constellation, you would need to have some wins in '26 and you would need to start recognizing that revenue. About 30% of that was new business. Brian, correct me if I'm wrong. Our team was tasked with go-get wins, which they did; our win rate at 88% shows that we can win under any acquisition strategy. The challenge is it all shifted to the right in the sense that the government prioritized putting IDIQs in place, and that has been slower to start, which means less new-business revenue for '26 for us, frankly. But they're showing a rapid acceleration now that they have those IDIQs in place, which is in line with what we expected, it just happened a little later than we would have liked. I'll hand it over to Brian for his remarks.
Yes, Alex, I think that was a pretty good summary that Dirk gave. The one thing I would add is we took the new business out as we described earlier and we continue to see some supply chain issues that pushed certain amounts into 2027. That was part of the equation here. And then certainly, that's offset by what we're seeing from new revenues coming in from the acquisitions. But that's the kind of the color and the pieces between all the different buckets there.
Got it. That's very helpful. And then maybe just digging more into what the supply chain issues are — is there any color you guys can help us with there?
I think we can give some quantitative insight, but I don't think we want to talk specifically about vendors. Brian, I think quantitatively we can maybe give some insight there. I don't think we should name specific suppliers.
Yes, that's right, Dirk. We shouldn't identify specific vendors. We're continuing to monitor the supply chain. We continue to work with those vendors to try to understand and move some of that forward if we possibly can. But as we were looking at the guidance change that we needed to do, we knew that at least this much needed to come out, and that's why we pushed it out into 2027.
Your next question comes from the line of David Strauss with Wells Fargo.
This is Josh Korn on for David. I wanted to follow up on the news that came out earlier today that you alluded to in the first question around the space data network connectivity demo contract. Any color you could give on that? And in addition, any other changes to the opportunity set within Space Data Network and how that's evolved since the last call?
Yes, Josh. I'll give what I can. It came out literally just before the call; I looked at it very quickly. I don't want to say anything that could get us in trouble with our customer, so I can't go into specifics. I can confirm that they were OTAs under the Space Data Network. We have been assured by the government that there would be competition in this network, and this is a great indication that there absolutely is competition. They're looking for proven providers, the kind of providers that were selected under these task orders. It's very exciting for us to see. As you know, we were one of the builders of the transport layer; we've deployed a lot of those systems working today, and we're in a very good position for this other kind of capability that they're looking for. I can't say too much beyond that, but I do anticipate that there will be more information released in the coming weeks.
Your next question comes from the line of Sheila Kahyaoglu with Jefferies.
It's Adam Samuelson on for Sheila. Given the cut to revenues, I know you don't give EBITDA guidance necessarily, but is there any way to help frame how to think about the decremental margin on the lower revenue base? If I look at the second half guidance midpoint, are you thinking the second quarter EBITDA performance is in the range of how you're thinking about the second half? Or is there incremental pressure because of the costs that come in with ALL.SPACE and the recent acquisitions?
Chris or Brian, I'm not sure where we are with sharing guidance on EBITDA.
I can take that one. It's a couple of different pieces. As I mentioned in our prepared remarks, we do think gross profit margin will remain around the mid-20% range. As you're thinking about that relative to EBITDA, taking a factor around that revenue reduction would get you directionally where you might want to be on the EBITDA side.
Your next question comes from the line of Austin Moeller with Canaccord.
Good afternoon. Can you quantify how much of the guidance change — the revenue push out into 2027 — was associated with later timing on contract awards from the IDIQs versus satellites that are waiting on components in the supply chain? And can you talk specifically about what those satellite programs are and when they might be ready for delivery?
Certainly. Between the supply chain push and the new revenue timing, those things are about equal in terms of how they contributed to the guidance change. But we haven't provided any additional color on specific programs or exact quantitative splits at this point.
Okay. And I understand gross margins are expected to remain in the mid-20s range for the back half of the year. As we get into early 2027 and some of these IDIQs start turning into production awards, should we be thinking about a similar or better ramp in margins, or how should we think about that?
At this point, with the contract award environment that Dirk described and awards coming out right before this call, we are not prepared yet to start talking about where 2027 margins would come in, or the revenue side for that matter.
Your next question comes from the line of Ryan Koontz with Needham & Co.
I want to touch on a couple of the opportunities you mentioned that were not really new award related. You talked about your real-time delivery opportunity. I wanted to take a gauge on that. If you could comment. And then also with regards to the ALL.SPACE acquisition, can you refresh us on what those use cases are and how you think about sales channels and relationships there going forward for the ALL.SPACE parts?
Can you offer more color on the first item? I got the second one is ALL.SPACE, but can you clarify the first question?
You had talked about the opportunity to be a short-term response delivery to government customers that they haven't had that luxury before. I know it was an opportunity you wanted to pursue. Maybe you can update us on those opportunities as you see them?
Sure. I would view this as how can increased inventory potentially improve win rates and delivery. Part of the IPO was to raise capital to support inventory. We're pretty far along in our production capacity and in technology maturity, and we're in the fortunate position that we can build inventory ahead of orders. We've begun that process. The benefit is that as we progress through IDIQs and task orders, we can bucket those into our inventory orders. When asked for a task order, our delivery time can be shorter because we already ordered those materials. We're seeing benefits in delivery timelines compared to some competitors who would need to start from scratch. We're allocating inventory already toward some of the programs we've won, and we can choose to invest more in inventory on the back end. As far as recognizing scheduled delivery and putting us in a good position to have a higher win rate, the inventory capability has been extraordinarily helpful, and it's been very successful so far. Regarding the ALL.SPACE acquisition, we're on the other side now. It's an amazing capability with very strong demand. We alluded in the earnings deck that they're getting new contract wins now for more terminals. Those systems are starting to proliferate across manned systems, but I'm really focused on unmanned proliferation. Unmanned systems will play a giant part in future warfare and many other areas. Assured communications — communications that are not jammed, as we're seeing in Ukraine and Iran — are going to be extraordinarily important. That's what the ALL.SPACE terminal enables: assured communications in denied environments and alternative GPS capability in denied environments. That's key to leveraging unmanned systems. They've continued to win new programs and contracts, which we're very happy about, and we're working to integrate those across unmanned systems, which I think has tremendous growth potential in the next two to three years.
Got it. And is ALL.SPACE going to bring much backlog to the picture here?
Brian, you can comment on that one.
Yes. We've not included the ALL.SPACE backlog in our June 30 number because our backlog number was as of June 30. We'll be updating that into Q3, so there will be a small increase related to ALL.SPACE backlog when we report Q3.
Our next question comes from the line of Noah Poponak with Goldman Sachs.
Good afternoon. This is Thomas Rozann for Noah Poponak. In your slide deck, you highlight a few billion of identified commercial pipeline. Can you provide any detail on the types of mission sets those commercial customers are serving?
Sure. I'll speak generally as commercial companies are often particular about specifics. There's a wide range of capabilities in that pipeline. One sample area is Earth observation — visible imagery, synthetic aperture radar, infrared — which are increasingly being bought commercially by the government and by other commercial buyers. Other areas include capabilities that historically were government-provided but are shifting to commercial services. Examples include more precise GPS capability that the government demands and could be provided as a commercial service, and weather services could also shift to commercial providers. So there are two buckets: traditional Earth observation, which has been growing for a long time, and capabilities that historically were government functions that can now be bought commercially, like precise positioning and other specialized services. Those are a few examples. I apologize I can't be more specific.
That's helpful. How should we think about the margin profile for these commercial customers? Is it largely similar to what you outlined during the Analyst Day, or what drives the difference there?
I think it's largely similar. Brian, do you want to add context?
It's a little bit lower than what we see on some of the government ones, but I don't think it's enough, particularly in the overall revenue mix, to call it out materially.
There are no further questions at this time. I will now turn the call back to Dirk Wallinger for closing remarks.
Yes. I just wanted to thank everyone for taking the time to hear the story. I look forward to speaking with you all next quarter.
This concludes today's call. Thank you for attending. You may now disconnect.