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Intuitive Machines, Inc.’s LUNR shares have surged a solid 55.5%% over the past year, surpassing the Zacks Aerospace-Defense industry’s growth of 3.4%. It has also outperformed the broader Zacks Aerospace sector’s rise of 7.7% as well as the S&P 500’s return of 8.3% in the same period. LUNR rides on its well-established position as a provider of lunar space products and services, along with the growing program funding from the U.S. government for space exploration.
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Other industry players, such as Rocket Lab USA RKLB and TransDigm Group TDG, have also delivered stellar performances, with their shares surging a solid 502.9% and 11.8%, respectively, over the past year.
With LUNR riding high, investors interested in space stocks may consider adding it to their portfolio. However, before making any hasty decision, it would be prudent to take a look at the reasons behind the surge, the stock’s growth prospects as well as risks (if any) to investing in the same. The idea is to help investors make a more insightful decision.
What Pushed LUNR Stock Up?
With investments in the space economy, both from governments and private concerns like SpaceX, having increased significantly over the past decade, stocks like Intuitive Machines are performing well on the bourses. This can be attributed to the frequent contracts clinched by LUNR leveraging its expertise in manufacturing space products and offering space services, and its innovation in space technologies.
Evidently, in March 2025, LUNR’s IM-2 mission lunar lander, Athena, landed on the Moon, registering the company’s second operational lunar mission. In January, Intuitive Machines secured a study contract from NASA to advance lunar logistics handling and offloading, and surface cargo and mobility.
Earlier, in December 2024, the company clinched additional contracts from NASA’s Near Space Network for Direct-to-Earth services. These demonstrate the achievements of LUNR in capitalizing on the growth opportunities of the expanding commercial lunar economy, which, in turn, must have boosted its share price over the past year.
Is LUNR Stock’s Growth Sustainable?
The space economy, projected to reach $1.8 trillion by 2035 (World Economic Forum, April 2024), offers substantial opportunities for innovation and expansion. Against this backdrop, Intuitive Machines is well-positioned for growth in the space exploration industry, supported by significant investments from the U.S. government and the private sector. Notably, LUNR is currently working on its largest lander, the Nova-M, designed to transport 5,000-7,500 kilograms of payload to the Moon’s surface. Upon launch, this innovation is expected to generate robust revenues.
Additionally, Intuitive Machines ended 2024 with a healthy backlog of $328.3 million, registering growth of 22% year over year and marking the highest backlog in the company’s history. This growing backlog reflects solid revenue-generation potential and underpins future earnings growth. As space exploration continues to thrive, Intuitive Machines is well-poised to capitalize on these expanding market opportunities.
A sneak peek at its estimates mirrors a similar picture.