Intuitive Machines (NasdaqGM:LUNR) saw its share price rise by 14% last week, amid the company's announcement of its fourth-quarter 2024 earnings and revenue guidance for 2025, alongside successful private placements. Despite reporting a net loss, the growth in sales and optimistic revenue outlook seem to bolster investor confidence. Simultaneously, broader market indices recorded declines due to macroeconomic concerns surrounding new tariffs on automobile imports. While significant losses were observed in sectors sensitive to these tariffs, Intuitive Machines appears to have diverged from market trends, possibly benefiting from investor focus on its space exploration initiatives and financial strategies.

We've identified 2 warning signs with Intuitive Machines (at least 1 which is a bit concerning) and understanding the impact should be part of your investment process.

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Over the past year, Intuitive Machines has witnessed a total shareholder return of 29.12%, surpassing the US market return of 5.6% and the Aerospace & Defense industry's 15.9%. This strong performance reflects significant achievements and strategic movements. For instance, the successful landing of the IM-2 lunar lander, Athena, in March 2025, marked a milestone in lunar exploration, likely capturing investor interest. Additionally, the company secured a US$116.9 million NASA contract in August 2024 to deliver payloads to the Moon, further establishing its role in space exploration.

Enhancing its financial position, Intuitive Machines closed a financing transaction and entered a US$40 million loan agreement with Stifel Bank in March 2025. Furthermore, the addition of the company to the S&P Aerospace & Defense Select Industry Index in December 2024 may have improved its visibility among investors, contributing to the favorable long-term share performance.

The valuation report we've compiled suggests that Intuitive Machines' current price could be inflated.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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