Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How quickly can Virgin Galactic ramp up flights after the initial launches in 2026, and is the baseline fleet model a good reference for 2027? A: Michael Colglazier, CEO, stated that they plan to maintain a pace of two flights per week once the ships are ready for private astronaut service in the fall of 2026. By 2027, they expect to be on track with this pace, allowing for a prudent ramp-up to ensure quality customer experience. Michael Moses, President of Spaceline, added that the test campaign will combine development and operational tests to prepare for full-rate operations in 2027.
Q: Will there be multiple research spaceflights before the first private astronaut flight in 2026? A: Michael Moses confirmed that there will be 6 to 10 spaceflights to test various aspects, including research payloads and cabin systems, before the first private astronaut flight. The focus will be on testing the differences in the new Delta ships compared to the Unity prototype.
Q: When will Virgin Galactic reopen its order book for new customers? A: Michael Colglazier mentioned that they plan to reopen the order book towards the end of 2025, as they have a solid backlog for the first year of operations. They intend to release sales in reasonable-sized tranches to maintain a steady order book ahead of vehicle capacity.
Q: Are there any changes in the propulsion system for the Delta ships compared to Unity? A: Michael Moses stated that there are no changes to the rocket motor itself, which will have similar thrust and performance as Unity. However, the oxidizer tank has been redesigned for a longer lifespan, supporting hundreds of flights.
Q: How does Virgin Galactic view the commercial research market, and are there opportunities for similar contracts like the one with Redwire? A: Michael Moses highlighted the potential for human-tended research opportunities in spaceflight, emphasizing the unique capability of their platform. The Redwire contract enhances technology applications, and there is significant potential for similar agreements as the commercial spaceflight industry grows.
Q: Is there potential for co-funding the development of the new mothership for additional mission profiles? A: Michael Colglazier acknowledged the potential for partnerships, especially for government-related missions, given the mothership's capability to carry heavy payloads to high altitudes. While the focus remains on achieving EBITDA positive operations with the first two ships, they are exploring partnership opportunities for future carrier ship platforms.
Q: How should we expect the trajectory of free cash flow to ramp to positivity by 2026? A: Doug Ahrens, CFO, explained that spending will decrease through 2025 as capital investments are completed. By 2026, with commercial service beginning, cash inflows will start, leading to positive cash flow around the time of the first spaceflights.
Q: Are there any updates on the customer experience side, especially with the potential second spaceport in Italy? A: Michael Colglazier noted progress with the Italian spaceport, highlighting the potential for increased market penetration and repeat visitation. The ability to offer different perspectives of Earth from space could enhance the customer experience and drive demand.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.