Shift in Service Revenue Growth Due to Maritime Broadband Transition and PNT Revenue Delay
Service revenue outlook revised from 5-7% to 3-5% for 2025, primarily due to faster-than-expected maritime broadband conversions to companion services, USID funding reductions, and delayed PNT revenue recognition to 2026.
Maritime broadband remains a key service, especially as a backup solution for Starlink and VSAT, with new Iridium Certus GMDSS terminals expected to support long-term maritime revenue.
PNT revenue, critical for addressing GPS vulnerabilities, has been pushed into 2026, with management confident in its growth potential and industry adoption, especially in autonomous systems and critical infrastructure protection.
Globalstar's Strategic Expansion in Ground Infrastructure and Satellite Constellation
Globalstar has initiated a comprehensive upgrade of its ground infrastructure, including the installation of a new 6-meter tracking antenna at its Texas ground station, part of a plan to add approximately 90 antennas across 35 ground stations in 25 countries.
The expansion aims to increase network capacity, resiliency, and coverage, ensuring robust service in mission-critical environments, especially highlighted by recent power outages in Spain and Portugal where the satellite network remained operational.
The company signed a launch services agreement with SpaceX for deploying 9 new satellites, with the first launch expected later in 2025 and the second in 2026, to replenish its second-generation constellation and maintain service continuity.
Gen2X Technology as a Catalyst for Industry Transformation
Gen2X is a set of extensions to the industry radio protocol that enhances read range, speeds inventory, and improves tag management.
It is driving demand for Impinj's products and is expected to be a key component of the industry's future.
Gen2X is primarily focused on enabling enterprise solutions that were previously unfeasible, creating a virtuous cycle of demand for M800 endpoint ICs.
Leidos' Strategic Focus on North Star 2030 Growth Pillars
Leidos is aligning all efforts around its North Star 2030 strategy, which includes five growth pillars: space and maritime, energy infrastructure, digital modernization and cyber, mission software, and managed health services.
Management emphasizes ongoing validation of these pillars through multiyear funding, notably from the One Big Beautiful Bill, which supports programs in space, maritime, mission software, TSA airport security modernization, border security, and veteran health services.
The strategy aims to leverage government funding and priorities to drive long-term growth and innovation.
ATN is executing over $300 million in broadband infrastructure projects in the U.S., with more than half scheduled for completion in 2025, as part of its long-term growth strategy.
These projects are primarily backed by government funding, aiming to expand fiber networks and improve service in underserved markets.
Management highlighted that these initiatives are crucial for future revenue growth and positioning the company for higher-margin services as the infrastructure comes online.
Motorola Solutions completed the $4.4 billion acquisition of Silvus, a leader in mobile ad hoc networks, shortly before the call, with an expected revenue contribution of $185 million in the stub period.
Management highlighted Silvus's strong financial profile, including a 45% EBITDA margin and a growth forecast of 20% in 2026, driven by defense, border security, and unmanned systems.
Silvus's technology powers defense and military drone platforms like AeroVironment and Anderol, with over 100 manufacturers certified, emphasizing its strategic importance in defense applications.
The company sees Silvus as a complementary addition to its existing portfolio, expanding into high-growth, infrastructure-less mesh networks for mission-critical communications.
Management expects Silvus to be a key enabler in international markets, especially in Europe, as defense and security investments increase, with less than 15% of revenue from Ukraine this year.
Dafinchi