Firefly looks to resume Alpha launches soon

WASHINGTON — Firefly Aerospace expects to resume Alpha launches in the “coming weeks,” with two flights planned before the end of the year.

The company shared details of its return-to-flight efforts during a Sept. 22 earnings call, its first since going public on the Nasdaq Aug. 7.

Firefly said Aug. 26 it had received clearance from the Federal Aviation Administration to resume Alpha missions after an April 29 failure. An investigation concluded that unexpected aeroheating of the first stage led to a structural failure at stage separation, damaging the upper-stage nozzle and preventing the rocket from reaching orbit.

That announcement did not state when flights would resume. “Firefly is now working to determine the next available launch window for Alpha Flight 7,” Jason Kim, the company’s chief executive, said on the call.

Later, he suggested the launch, carrying a Lockheed Martin payload, could take place soon. “We expect to launch Flight 7 in the coming weeks,” he said. “We’re working closely with the range and our customer, Lockheed Martin, to share more details on the mission and payload soon.”

The Alpha for Flight 7 is in a “mature state,” Kim said, along with the vehicle for the next launch. A presentation slide showed the two rockets side by side in a hangar. Kim said Firefly plans to launch both before year’s end.

Lockheed was also the customer for the failed April mission, which carried an LM400 satellite developed as a technology demonstration.

In August, Firefly said it would mitigate the aeroheating issue by adding more thermal protection material and adjusting the rocket’s angle of attack during certain flight phases. The additional thermal protection material will have a “negligible” impact on vehicle mass and performance, Kim said.

Firefly reported $15.5 million in revenue for the second quarter and $71.4 million for the first half of the year. It posted an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $47.9 million in the second quarter and a $95 million loss year to date, comparable to the same periods last year.

Chief Financial Officer Darren Ma said the company projects 2025 revenues of $133 million to $145 million. Firefly is not currently providing guidance on other metrics such as adjusted EBITDA and free cash flow, he added.

The company’s balance sheet improved in August with its initial public offering, which raised nearly $1 billion in gross proceeds. After paying off a $148.1 million loan, Firefly holds about $1 billion in cash and equivalents, Ma said.

Kim said IPO proceeds will “supercharge our growth,” enabling higher Alpha production, completion of the larger Eclipse rocket, and progress on its Elytra spacecraft and Blue Ghost lunar lander. Earlier in the day, Firefly announced it had secured an additional $10 million from NASA for its Blue Ghost 1 mission that landed on the moon in March by providing more images and data from the lander.

Kim also said some funds could go toward mergers and acquisitions. “Any M&A target has to fit our strategy,” he said, as well as align culturally and create synergies with existing products. “Those are things we look for in companies,” he added, without naming potential targets.