STOCK TITAN

Virgin Galactic Announces New Research Flight Contract With Repeat Customer

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary

Virgin Galactic has secured a new contract with the International Institute for Astronautical Sciences (IIAS) to conduct a space research mission on a Delta Class spaceship. The mission will involve three IIAS research astronauts, including bioastronautics researcher Kellie Gerardi, who previously flew on Galactic 05. The upcoming mission will build on the results from Galactic 05, which successfully tested healthcare technologies and fluid dynamics in microgravity. The Delta spaceships, set to commence service in 2026, can conduct up to eight missions per month, significantly increasing Virgin Galactic's capacity for space research.

Positive
  • New contract with IIAS for a second research mission.
  • Successful previous mission (Galactic 05) demonstrated fluid behavior prediction in microgravity.
  • Delta Class spaceships to commence service in 2026 with up to eight missions per month.
  • Enhanced payload capabilities with upgrades to camera quality and accelerometer measurements.
Negative
  • No immediate revenue impact as commercial service commences only in 2026.
  • Potential challenges in maintaining the high frequency of monthly missions.

Virgin Galactic's announcement of a new research flight contract with the International Institute for Astronautical Sciences (IIAS) has meaningful implications for the company's financial outlook. The repeat business from IIAS highlights a growing demand for Virgin Galactic's services and underscores the reliability and quality of their microgravity environment.

From a financial perspective, the contract indicates sustained revenue streams beyond the tourist spaceflight market. The potential to fly up to eight space missions per month with the new Delta Class spaceships signifies a significant increase in operational capacity, potentially leading to higher revenue. The ability to serve both research and tourism markets can help diversify Virgin Galactic’s income, reducing reliance on any single source.

Retail investors should consider that while this contract reinforces Virgin Galactic's position in the space research market, profitability will also depend on operational efficiency and cost management as they scale their operations. Cash flow stability and capital expenditure for the new fleet are critical factors to watch in the upcoming financial reports.

The technological advancements showcased by Virgin Galactic in this contract are noteworthy. The Delta Class spaceship represents a leap in both capacity and technological sophistication, capable of handling more complex research payloads and offering higher frequency missions. The emphasis on upgraded camera quality and accelerometer measurements demonstrates a commitment to enhancing the precision and scope of data collection in microgravity conditions.

This technological progression is important for maintaining a competitive edge in the rapidly evolving commercial space industry. Investors should recognize that continuous innovation and improvement in spacecraft capabilities are essential for sustaining long-term viability and attracting more research institutions.

The partnership with IIAS for a second research mission highlights a promising market opportunity for Virgin Galactic. The success of the initial ‘Galactic 05’ mission has paved the way for future collaborations, indicating strong market confidence in their capabilities. Virgin Galactic’s ability to offer a repeatable and reliable microgravity environment positions it uniquely within the suborbital research market.

The growing interest from scientific communities and organizations like IIAS could foster new revenue streams and partnerships, enhancing Virgin Galactic’s market position. However, market dynamics such as competition from other commercial space companies and regulatory environments should also be considered. It is important for Virgin Galactic to maintain its technological edge and consistently deliver high-quality services to retain and attract clients.

International Institute for Astronautical Sciences to Expand Research Conducted on Galactic 05 Flight

Second-Time Virgin Galactic Astronaut Kellie Gerardi to Lead IIAS Crew Aboard Next Generation Delta Spaceship

ORANGE COUNTY, Calif.--(BUSINESS WIRE)-- Virgin Galactic Holdings, Inc. (NYSE: SPCE) (“Virgin Galactic” or the “Company”) today announced a new contract with the International Institute for Astronautical Sciences (“IIAS”) to fly three research astronauts as part of a future crew aboard the Company’s Delta Class spaceship.

It will be the second research mission that IIAS has conducted with Virgin Galactic. It follows ‘Galactic 05’ in November 2023, which tested novel healthcare technologies and examined how fluids behaved in low gravity to help inform designs for future medical technologies and life-support systems. The mission is anticipated to take place within the first year of Delta commercial service, which remains on track to commence in 2026.

“We were thrilled with the results from our fluid cell experiment on ‘Galactic 05’, which demonstrated our ability to accurately predict the behavior of fluid in a container in a weightless environment. We’ll be expanding on that research for our next mission, and I’ll be working to demonstrate our ability to control the behavior of the liquid as well,” said astronaut and IIAS Director of Human Spaceflight Operations Kellie Gerardi. “The quality and repeatability of the microgravity environment provided by Virgin Galactic’s system is truly game-changing and the potential for a ‘fly, fix, fly’ approach opens the door to many exciting possibilities for IIAS to make discoveries that benefit future explorers.”

The IIAS astronaut crew expected to participate in the research mission includes:

  • Kellie Gerardi, a bioastronautics researcher and IIAS Director of Human Spaceflight Operations from the U.S. Gerardi previously flew as a payload specialist on the ‘Galactic 05’ research mission.
  • Dr. Shawna Pandya, a physician, aquanaut, bioastronautics researcher, and Director of IIAS’s Space Medicine Group, from Canada.
  • Dr. Norah Patten, an aeronautical engineer and bioastronautics researcher from Ireland.

Full biographies are available here. More information on Virgin Galactic’s research capabilities here.

The mission is designed to enable IIAS to introduce new research while also expanding upon the results from ‘Galactic 05,’ during which astronaut Kellie Gerardi was able to successfully validate a fluid behavior theory within the high-quality microgravity conditions available through Virgin Galactic’s unique flight system. The IIAS crew plans to fly additional fluid cells, with payload enhancements including upgrades to camera quality and accelerometer measurements.

“We’re excited to continue our partnership with IIAS in an expanded capacity,” said Virgin Galactic Vice President of Government Affairs and Research Operations, Sirisha Bandla. “Our suborbital science lab is revolutionizing the field of microgravity research by offering routine, reliable access to space – and it’s great to see institutions like IIAS begin to build iterative and innovative campaigns around suborbital space-based research.”

Virgin Galactic’s Delta Class spaceships can be configured to fly either six mission specialists, or four specialists and two additional payload racks, depending on customer needs. More information will be shared regarding further mission specialists and payloads joining the IIAS crew on this spaceflight as the manifest expands.

Each Delta spaceship is currently estimated to be capable of flying up to eight space missions per month, which is twelve times the monthly capacity of the Company’s original spaceship, VSS Unity. The new spaceship fleet is anticipated to dramatically increase repeatable and reliable access to the microgravity environment.

About Virgin Galactic

Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers with its advanced air and space vehicles. Scale and profitability are driven by next generation vehicles capable of bringing humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the proposed research mission and the anticipated timing thereof, including the expected astronauts, inflight activities and experiments, and the expectation to validate and expand upon the prior research conducted on Galactic 05, our spaceflight systems, increasing our flight rate, providing repeatable and reliable access to space, the development timeline of the Delta Class spaceships, commencement of commercial service of our Delta fleet and timing thereof, and the estimated number of monthly flights of the Delta Class spaceships are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to, any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our Delta fleet and the time and costs associated with doing so, the safety of our spaceflight systems, our expected capital requirements and the availability of additional financing, and the other, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

For media inquiries:

Aleanna Crane – Vice President, Communications

news@virgingalactic.com

575.800.4422

Jeff Michael – Communications

news@virgingalactic.com

661.754.4300

For investor inquiries:

Eric Cerny – Vice President, Investor Relations

vg-ir@virgingalactic.com

949.774.7637

Source: Virgin Galactic Holdings, Inc.

FAQ

What is Virgin Galactic's new contract about?

Virgin Galactic's new contract with IIAS involves flying three research astronauts on a Delta Class spaceship to conduct space research.

When will the new Virgin Galactic research mission take place?

The new research mission with IIAS is expected to occur within the first year of Delta commercial service, starting in 2026.

Who are the astronauts involved in Virgin Galactic's upcoming mission?

The mission will include Kellie Gerardi, Dr. Shawna Pandya, and Dr. Norah Patten.

What did the Galactic 05 mission achieve?

The Galactic 05 mission successfully tested healthcare technologies and fluid dynamics in microgravity to inform future medical and life-support systems.

What is the capacity of Virgin Galactic's Delta Class spaceships?

Virgin Galactic's Delta Class spaceships can conduct up to eight missions per month, significantly increasing research capabilities.

Virgin Galactic Holdings, Inc.

NYSE:SPCE

SPCE Rankings

SPCE Latest News

SPCE Stock Data

155.29M
20.57M
8.09%
40.71%
27.58%
Small Arms Ammunition Manufacturing
Manufacturing
Link
United States of America
TUSTIN