Maxar Technologies Ltd. (MAXR) Shares Surge on Multi-Billion Dollar EOCL Award and Updated Guidance

May 25, 2022 1:59 PM EDT

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Maxar Technologies (NYSE: MAXR) shares jumped 15% Wednesday after the space technology company received a satellite imagery contract from an agency of the Defense Department.

The National Reconnaissance Office awarded the 10-year contract for the government’s Electro-Optical Commercial Layer (EOCL) program, which is an effort to bring in multiple commercial satellite makers from the U.S.

Maxar said the contract is worth up to $3.24 billion, including a five-year base contract and a five-year option after that.

Maxar previously was the only provider of commercial satellite equipment. The National Reconnaissance Office also gave contracts to BlackSky (NASDAQ: BSKY) and Planet and said the billions of dollars worth of agreements is a “historic” expansion of its commercial satellite acquisition program.

In addition to the contract news, Maxar narrowed its full-year 2022 sales and adjusted earnings guidance for its Earth Intelligence unit and for the whole company. Earth Intelligence revenue guidance is now a range between $1.170 billion and $1.220 billion, and adjusted earnings before interest, taxes, depreciation and amortization for the unit is a range between $520 million and $555 million.

Total company revenue is projected to be in a range of $1.805 billion and $1.855 billion, and total company adjusted EBIDTA is seen in a range between $455 million and $505 million.

By Liz Moyer

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