Intuitive Machines Earnings Call: Cautious Optimism Amid Growth

Intuitive Machines, Inc. ((LUNR)) has held its Q1 earnings call. Read on for the main highlights of the call.

Intuitive Machines, Inc. recently held its earnings call, revealing a cautiously optimistic outlook. The company highlighted several positive developments, including revenue growth and achieving positive cash flow for the first time. However, challenges such as the IM-2 mission’s landing anomaly and increased SG&A expenses were also discussed, suggesting a balanced view of the company’s current position.

Sequential Revenue Growth

Intuitive Machines reported a 14% increase in revenue for Q1 2025, reaching $62.5 million. This growth was primarily driven by the successful execution of contracts in CLPS, LTVS, and NSNS, indicating strong operational performance and market demand.

Positive Free Cash Flow

For the first time in its history, Intuitive Machines achieved positive free cash flow, amounting to $13.3 million in Q1 2025. This milestone marks a significant financial achievement, showcasing the company’s improved cash management and operational efficiency.

Contract Awards and Backlog

The company secured new awards, including an $18 million task order for NSNS and a $10 million grant from the Texas Space Commission. Despite a reduction in contracted backlog from $328.3 million in Q4 2024 to $272.3 million in Q1 2025, these new contracts reflect ongoing business momentum.

NASA Contract Progression

Key milestones were achieved under NASA’s NSNS contract, with $3 million recognized in revenue during Q1. This progression underscores Intuitive Machines’ capability to deliver on significant government contracts, enhancing its reputation in the aerospace sector.

Successful Lunar Mission

The IM-2 mission was noted for its successful landing further south on the moon than any previous mission, providing valuable operational data. This achievement highlights the company’s innovative capabilities in lunar exploration.

IM-2 Mission Landing Anomaly

Despite the success, the IM-2 mission faced a landing anomaly due to laser altimeter interference and terrain and lighting effects. Addressing these issues will be crucial for future mission success and reliability.

Higher SG&A Expenses

SG&A expenses rose to $16.1 million, attributed to annual incentives and stock compensation. This increase, while slightly up from Q4 2024, reflects the company’s investment in talent and employee motivation.

Adjusted EBITDA Loss

The company reported a negative adjusted EBITDA of $6.6 million in Q1 2025, though this was an improvement over Q4 2024. This indicates ongoing efforts to enhance profitability despite current financial challenges.

Forward-Looking Guidance

Intuitive Machines provided forward-looking guidance, emphasizing its strategic focus on leveraging federal opportunities, particularly in civil and national security space. The company anticipates revenue guidance of $250-300 million for 2025 and aims to achieve positive adjusted EBITDA by year-end. With a strong cash position of $373.3 million, the company is well-positioned to capitalize on emerging opportunities.

In summary, Intuitive Machines’ earnings call reflected a cautiously optimistic outlook, with notable achievements in revenue growth and cash flow positivity. While challenges remain, the company’s strategic focus and strong cash position provide a solid foundation for future growth and profitability.