Iridium Communications' (IRDM, Financial) stock jumped 14% today after reporting record-breaking Q3 2024 results, fueled by solid performance across the board. Net income hit $24.4 million, a sharp rebound from last year's $1.6 million loss, and total revenue climbed 8% year-over-year to $212.8 million. Operational EBITDA also reached an all-time high of $124.4 million. The backbone of Iridium's growth came from its commercial services, which now account for 63% of revenue, with the commercial IoT sector leading the charge—subscribers jumped 14%, solidifying Iridium's grip on this market.
A major pillar of Iridium's success continues to be its long-term U.S. government contracts, particularly its Enhanced Mobile Satellite Services deal with the U.S. Space Force. Government service revenue remained steady at $26.5 million, while equipment sales and engineering support saw notable gains. Equipment sales rose 9%, and engineering and support revenue skyrocketed 22%, showcasing Iridium's broad operational strength.
Looking forward, Iridium boosted its full-year outlook, now predicting 5% growth in service revenue and Operational EBITDA in the range of $465 million to $470 million. The company is also rewarding shareholders with an expanded $500 million share repurchase program and continued dividend payouts. With its growing subscriber base, consistent government deals, and aggressive capital return plans, Iridium is positioning itself for sustained growth and shareholder value.
