Iridium Awarded 5-Year System Infrastructure Transformation and Hybridization Contract Worth Up to $85.8 Million

Rhea-AI Summary

Iridium (NASDAQ: IRDM) was awarded a 5-year IDIQ contract by the U.S. Space Force Space Systems Command Commercial Space Office on Dec. 2, 2025, with a potential value of up to $85.8 million. The System Infrastructure Transformation and Hybridization (SITH) contract funds technological refreshes, lifecycle upgrades, and security enhancements for the Enhanced Mobile Satellite Services (EMSS) Service Center, Technical Support Center, and Defense Ground Station.

SITH is a follow-on to Iridium's 2019 Gateway Evolution Contract, is one of three core EMSS contracts including the Airtime and ECS3 agreements, and supports Iridium's role in establishing the ground Operations and Integration segment for Tranche 1 of the Proliferated Warfighter Space Architecture.

Positive

• Potential contract value of up to $85.8 million over 5 years
• 5-year IDIQ enables recurring task orders for upgrades and security
• Supports core EMSS infrastructure including Service Center, TSC, and DGS
• Follow-on work to 2019 Gateway Evolution Contract, indicating continuity

Negative

• Value is potential (IDIQ up to $85.8M) and not guaranteed revenue

News Market Reaction

+1.58%

1 alert

+1.58% News Effect

On the day this news was published, IRDM gained 1.58%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

SITH contract value: $85.8 million Contract term: 5 years Q3 2025 revenue: $226.9M +5 more

8 metrics

SITH contract value $85.8 million Potential value of 5-year IDIQ contract with U.S. Space Force

Contract term 5 years Duration of System Infrastructure Transformation and Hybridization contract

Q3 2025 revenue $226.9M Quarter ended September 30, 2025, from 10-Q filing

Q3 2025 operating income $70.1M Quarter ended September 30, 2025, from 10-Q filing

Q3 2025 net income $37.1M Quarter ended September 30, 2025, from 10-Q filing

Q3 2025 EPS (diluted) $0.35 Quarter ended September 30, 2025, from 10-Q filing

Price change 6.25% Move on the day of the SITH contract headline

Price vs 52-week high -45.4% Distance from 52-week high of $34.45 before this news

Market Reality Check

Price: $19.04 Vol: Volume 2,509,439 vs 20-da...

normal vol

$19.04 Last Close

Volume Volume 2,509,439 vs 20-day average 1,989,535 (relative volume 1.26x), indicating elevated interest into this contract news. normal

Technical Shares at $18.81 are trading below the 200-day MA of $23.89, keeping the stock in a pre-existing downtrend despite the positive headline.

Peers on Argus

IRDM gained 6.25% while key telecom peers like CCOI, LILA, GOGO, IDT, and LILAK ...

IRDM gained 6.25% while key telecom peers like CCOI, LILA, GOGO, IDT, and LILAK were up between 0.89% and 2.47%. Peers were positive but moved less, and no names appeared in the momentum scanner, pointing to a stock-specific reaction to the contract win.

Historical Context

5 past events · Latest: Dec 09 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	IoT partnership	Positive	-0.3%	Hyundai integrates Iridium SBD for remote fleet monitoring and diagnostics.
Dec 04	Board change	Positive	+2.4%	Louis Alterman joins board, adding communications and finance experience.
Dec 02	Defense contract	Positive	+1.6%	Award of 5-year SITH EMSS infrastructure contract up to $85.8M.
Nov 04	Investor conferences	Positive	+0.8%	Participation in three late-2025 investor conferences with webcast access.
Nov 04	IoT connectivity deal	Positive	-2.6%	Vodafone IoT partnership for NTN Direct NB-IoT and direct-to-device service.

Pattern Detected

Recent news has drawn mixed reactions: positive commercial and government contract headlines often led to modest gains, while some strategic partnerships and IoT announcements saw negative or muted follow-through, suggesting no consistent pattern of post-news performance.

Recent Company History

Over the last few months, Iridium reported several notable developments. A 5-year EMSS SITH contract worth up to $85.8M on Dec 2, 2025 saw a 1.58% gain, followed by a board expansion on Dec 4 that coincided with a 2.39% rise. Commercial partnerships, including the Vodafone IoT NTN NB-IoT deal and the HD Hyundai fleet connectivity integration, produced mixed price reactions. Alongside this, Q3 2025 filings highlighted revenue and earnings growth, framing today’s defense contract as part of a broader growth and government-focused strategy.

Market Pulse Summary

This announcement highlights a 5-year IDIQ SITH contract worth up to $85.8M for upgrading U.S. Depar...

Analysis

This announcement highlights a 5-year IDIQ SITH contract worth up to $85.8M for upgrading U.S. Department of Defense EMSS ground infrastructure, reinforcing Iridium’s role in mission-critical military communications. In context with recent Q3 2025 revenue of $226.9M and earnings growth, the award adds to a pipeline of government and commercial wins. Investors may watch for follow-on task orders, progress on PWSA ground integration, and how these contracts contribute to future reported revenue and margins.

Key Terms

indefinite delivery/indefinite quantity (IDIQ), enhanced mobile satellite services (EMSS), low-earth orbit (LEO), proliferated warfighter space architecture (PWSA), +2 more

6 terms

indefinite delivery/indefinite quantity (IDIQ) regulatory

"it has been awarded a 5-year indefinite delivery/indefinite quantity (IDIQ) contract"

An indefinite delivery/indefinite quantity (IDIQ) is a type of contract that lets a buyer commit to buy goods or services over a set period without specifying exact quantities or delivery dates up front, while setting minimums and maximums. Think of it like a grocery standing order where you agree to buy up to a certain amount but the timing and exact amounts are decided later. For investors, IDIQs matter because they can create a predictable revenue stream and backlog while leaving some uncertainty about timing and total value, affecting earnings visibility and cash flow planning.

enhanced mobile satellite services (EMSS) technical

"enhancements to the Enhanced Mobile Satellite Services (EMSS) Service Center"

Enhanced mobile satellite services (EMSS) are satellite-based communication systems that provide voice, text and data to users on the move or in remote locations using specialized satellites and handheld or vehicle-mounted devices. Investors care because EMSS involves spectrum rights, satellite and ground equipment sales, subscription revenue and partnerships with mobile carriers — much like owning the pipes and toll booths for connectivity in places where regular cell service can't reach.

low-earth orbit (LEO) technical

"Powered by the only truly global low-Earth orbit (LEO) network"

Low-Earth orbit (LEO) is the band of space closest to Earth where satellites and spacecraft circle the planet, roughly between about 160 and 2,000 kilometers up—imagine a busy low-altitude highway around the globe. It matters to investors because many communications, imaging, and data services rely on satellites there, so developments in launch costs, satellite technology, traffic and regulation can directly affect companies’ revenues, costs and risk profiles.

proliferated warfighter space architecture (PWSA) technical

"segment for Tranche 1 of the Proliferated Warfighter Space Architecture (PWSA)"

A proliferated warfighter space architecture (PWSA) is a military approach that uses many small, networked satellites and ground systems instead of a few large spacecraft to deliver communications, navigation, and sensing for combat forces. Think of it like replacing a single central power plant with a neighborhood of solar panels: the result is harder to disable, can be scaled up quickly, and lets operators reroute around failures. For investors, PWSA signals demand for builders, launch providers, ground equipment, and cyber-resilience services tied to defense budgets and procurement programs.

operations and integration (O&I) technical

"works to establish the ground Operations and Integration (O&I) segment"

Operations and integration (O&I) is the team and process that combines an acquired or merged business with the buyer’s existing operations—aligning systems, processes, people, facilities and supply chains so both parts run together smoothly. Investors care because effective O&I turns projected savings and new revenue into reality, while poor execution can cause disruptions, extra costs or lost sales; think of it as merging two kitchens so meals keep coming without wasting ingredients or staff time.

p.a.c.e. technical

"the warfighter's P.A.C.E. (Primary, Alternate, Contingency, Emergency) plan"

p.a.c.e. (often written PACE) is a financing program that lets property owners pay for energy efficiency, renewable energy, or storm-resilience upgrades through a special assessment added to their property tax bill. For investors, PACE matters because it creates a long-term, tax-backed payment stream tied to the property rather than the owner, which can affect the credit quality of loans, the value of properties, and the risk profile of investments tied to real estate or municipal securities — think of it as a mortgage-style charge specifically for green upgrades.

AI-generated analysis. Not financial advice.

New Contract Supports Enhancements to the Iridium and U.S. DoD EMSS Service Center and Related Facilities

MCLEAN, Va., Dec. 2, 2025 /PRNewswire/ -- Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice, data, and PNT satellite services, today announced it has been awarded a 5-year indefinite delivery/indefinite quantity (IDIQ) contract from United States Space Force's (USSF) Space Systems Command Commercial Space Office (COMSO) with a potential value of up to $85.8 million.  

The System Infrastructure Transformation and Hybridization (SITH) contract enables technological refreshes, lifecycle upgrades, and security enhancements to the Enhanced Mobile Satellite Services (EMSS) Service Center, Technical Support Center (TSC), and Defense Ground Station (DGS). SITH is a follow-on contract to the Gateway Evolution Contract awarded to Iridium in 2019. 

The Iridium^® network provides resilient, mission-critical communications that warfighters need—anywhere in the world, even under adverse weather conditions. SITH is the latest of three core EMSS contracts between Iridium and the USSF. The EMSS Airtime Contract delivers unmatched truly global SATCOM connectivity, offering unlimited access for an unlimited number of DoD and federal government users. Meanwhile, through the Capabilities and Security Sustainment Services Contract (ECS3) awarded in April 2024, Iridium helps ensure the EMSS Service Center and DGS remain at peak performance.

"Through this contract, Iridium and the U.S. Space Force will continue to innovate and deliver resilient, secure and highly reliable mission-critical communications," said Scott Scheimreif, executive vice president, Iridium. "Our solutions with the Department of Defense are designed to serve every layer of the warfighter's P.A.C.E. (Primary, Alternate, Contingency, Emergency) plan. We look forward to supporting the U.S. and our allies through new technology introductions and ongoing collaboration."

Powered by the only truly global low-Earth orbit (LEO) network, Iridium's voice and data solutions elevate situational awareness for military forces and provide precise tracking of critical assets in the harshest environments—delivering a level of performance and reliability that is not easily duplicated. Additionally, the company's expertise in satellite operations and network management is integral as it works to establish the ground Operations and Integration (O&I) segment for Tranche 1 of the Proliferated Warfighter Space Architecture (PWSA). 

For more information about Iridium, visit www.iridium.com.

About Iridium Communications Inc.
Iridium^® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations, and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2024, Iridium acquired Satelles and its positioning, navigation, and timing (PNT) service. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services, and partner solutions, visit www.iridium.com.

Press Contact:	Investor Contact:
Jordan Hassin	Kenneth Levy
Iridium Communications Inc.	Iridium Communications Inc.
Jordan.Hassin@Iridium.com	Ken.Levy@Iridium.com
+1 (703) 287-7421	+1 (703) 287-7570

 

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SOURCE Iridium Communications Inc.

FAQ

What did Iridium (IRDM) announce on December 2, 2025?

Iridium announced a 5-year IDIQ SITH contract from U.S. Space Force with a potential value of up to $85.8 million to upgrade EMSS infrastructure.

How long is the SITH contract awarded to Iridium (IRDM)?

The SITH contract term is 5 years as an indefinite delivery/indefinite quantity agreement.

What EMSS facilities will Iridium (IRDM) support under the SITH contract?

The contract covers technological refreshes and security enhancements for the EMSS Service Center, Technical Support Center, and Defense Ground Station.

Is the $85.8 million award guaranteed revenue for Iridium (IRDM)?

No; the contract is an IDIQ with a potential value of up to $85.8 million, meaning actual task orders determine realized revenue.

How does the SITH award relate to Iridium's prior DoD work?

SITH is a follow-on to Iridium's 2019 Gateway Evolution Contract and complements the EMSS Airtime and ECS3 contracts.

Does the SITH contract connect to Iridium's work on PWSA Tranche 1?

Yes; the company said SITH supports its role in establishing the ground Operations and Integration segment for PWSA Tranche 1.