In This Article:
Key Points
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Intuitive Machines' Q1 earnings topped analysts' expectations.
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It provided a rosy outlook for the rest of the year.
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It still looks reasonably valued relative to its long-term growth potential.
Intuitive Machines' (NASDAQ: LUNR) stock soared more than 20% to a two-month high on May 13 after it posted its latest earnings report. For the first quarter of 2025, the lunar exploration company's revenue fell 14% year over year to $62.5 million but still exceeded analysts' expectations by $3.1 million. Its operating loss widened from $2.8 million to $10.1 million, but it also cleared the consensus forecast for an operating loss of $11.2 million.
Intuitive Machines' numbers might not seem that impressive, but its recent achievements, fresh contracts, and bright guidance for the rest of the year brought back the bulls. Let's take a look at those three catalysts and see if investors should chase its post-earnings pop.
Intuitive Machines achieved its second lunar landing
Intuitive Machines produces lunar landing and exploration vehicles. Its top customer is NASA, but it also helps private companies deliver their payloads to the moon. It's achieved two successful lunar landings for NASA so far.
On Feb. 22, 2024, it landed its first Nova-C lander, IM-1 (Odysseus), on the moon. It tipped over after touching down, but it still transmitted over 350 megabytes of data from its payloads for NASA and its commercial customers before shutting down. That marked the first successful U.S. moon landing since 1972, and it prompted NASA to award Intuitive with additional contracts.
On March 6, 2025, it landed its second Nova-C lander, IM-2 (Athena), in the southernmost lunar landing ever near the moon's south pole. The lander tipped over to its side again, but it still collected and transmitted some data for its payloads before shutting down. Achieving that second landing during the first quarter indicated its business was sustainable -- and that it could keep securing a steady stream of contracts from NASA and its commercial customers.
Intuitive Machines' relationship with NASA is tightening
This January, NASA awarded Intuitive a new $2.5 million contract to develop a heavy cargo lunar lander. That contract is part of NASA's Moon-to-Mars Architecture project, which aims to establish a sustainable human presence on the moon. That deal complements two other major contracts with NASA: a long-term lunar terrain vehicle (LTV) contract last April and a five-year near-space network services (NSNS) contract worth up to $4.8 billion last September. It earned $9 million for executing the first two milestones for the NSNS contract during the quarter, and it secured an additional $18 million in funding for the next two milestones in the second quarter.