AST SpaceMobile wins U.S. Space Force contract, but shares drop 8%

Firefly Aerospace (FLY) shares rose 26.8% after announcing a $1.3B deal to sell 36 rocket engines to AST SpaceMobile (ASTS). AST's stock increased 5%. The deal aims to help AST build its own rockets for satellite launches, addressing current launch constraints.

Firefly Aerospace Inc. has secured a $1.3B deal with AST SpaceMobile Inc. to supply 36 rocket engines for AST's heavy-lift rocket. Firefly will provide 27 Miranda and 9 Vira engines, along with intellectual property licenses. The funds will accelerate Firefly's launch and spacecraft production, including hiring and facility upgrades. Firefly is also involved in NASA's lunar and Mars missions.

Firefly Aerospace (FLY) shares rose 23% after a $1.3B deal to supply rocket engines to AST SpaceMobile (ASTS) for its Blacklift rocket. AST aims to launch Blacklift by late 2028, reducing reliance on third-party providers like SpaceX (SPCX).

AST SpaceMobile (ASTS) shares rose after a $1.3B deal with Firefly Aerospace (FLY) to build a reusable rocket, Blacklift, for satellite launches. ASTS will pay $800M upfront, including cash and shares, and $500M over three years for engines and support. Firefly's shares climbed 20%. ASTS aims to deploy BlueBird satellites starting in 2028. Analysts give ASTS a Moderate Buy rating with a $80.71 average price target, suggesting 160.53% upside.

AST SpaceMobile (ASTS) will develop the Blacklift rocket for BlueBird satellite launches using Firefly Aerospace (FLY) engines. The $1.3B deal includes engine licensing, manufacturing rights, and support. Blacklift, set for 2028, aims to reduce launch dependency and expand AST SpaceMobile's satellite network.

AST SpaceMobile (ASTS) agreed to a $1.3B deal with Firefly Aerospace (FLY) for 36 rocket engines to build its reusable Blacklift rocket, competing with SpaceX (SPCX). ASTS will pay in cash and stock, aiming to launch the rocket by late 2028. The deal includes a perpetual license to manufacture engines in-house. ASTS stock has a Moderate Buy consensus with a $80.71 average price target, implying 165.50% upside.