Intuitive Machines (NASDAQ: LUNR) attracted considerable attention earlier this year after successfully executing its first mission to the Moon in January. This success is part of a notable shift in the approach to space exploration , which has transitioned from government-led endeavors to commercial ventures over the past couple of decades.
The surge of interest in space exploration and research is evident, with research firm Spherical Insights projecting a 16% compound annual growth rate for the global space exploration market through 2032. With Intuitive Machines gearing up for another mission early next year, is the stock worth investing in today?
Let's dive into the business and find out.
Image source: Getty Images.
Intuitive Machines has had some big wins in 2024
In February, Intuitive Machines completed its first lunar mission with its Nova-C lunar lander, Odysseus. The purpose was to soft-land Odysseus onto the Moon's surface and collect scientific data for its customers. The mission was part of NASA's Commercial Lunar Payload Services program and was the first lunar landing of any American-made spacecraft since 1972. It was also the first of its kind for any commercial spacecraft.
Intuitive launched Odysseus on Feb. 15 with the help of SpaceX's Falcon 9 booster and landed on the Moon on Feb. 22. The lander lost power on Feb. 29, and the team hoped it would regain power after lunar night, but they lost contact after two weeks. Despite this, CEO Steve Altemus and NASA deemed the mission a success, and the news sent the stock surging higher throughout February.
The mission helped validate Intuitive's technology, which has been under development since its founding in 2013. Following the successful mission, NASA awarded Intuitive a $30 million contract as a prime contractor to build a lunar terrain vehicle enabling astronauts to travel on the Moon's surface to conduct further research.
Keep an eye on its cash
In the second quarter, Intuitive posted an operating loss of $28 million, which was larger than the $9 million projected operating loss by analysts. Through the first half of this year, the company spent $41.5 million in cash for operations and still has a ways to go until it reaches profitability.
According to management, Intuitive's cash position, which stood at $31.6 million at the end of Q2, should be enough to fund operations through the next 12 months.
The company will benefit from future Moon missions, but will continue to burn cash until it becomes profitable. Analysts project this year's revenue to be around $223 million, while its net loss is expected to be around $68 million. Next year's revenue is projected to be around $371 million, with a net loss of $10 million.
It's not until 2026 that analysts project Intuitive could turn a profit. They estimate a net income of $15 million on $475 million in revenue. In the meantime, Intuitive may have to sell shares to raise more capital, diluting shareholders in the process.
Image source: Getty Images.
Next up for Intuitive Machines is its IM-2 mission. On this trip, its lander will transport a TRIDENT ice drill (short for The Regolith Ice Drill for Exploring New Terrain) and mass spectrometer to research ice on the surface of the Moon. The mission is projected to launch in January next year to align with the site's solar power conditions.
Is the stock right for you?
If you're considering investing in Intuitive Machines, it's important to understand your risk profile well. The company is in its very early days. It remains a speculative investment that will likely continue experiencing volatility as it undergoes more missions and looks to scale up its commercial operations.
Its trip earlier this year removed a lot of uncertainty around it, and the success of future missions will go a long way toward validating the company's technology and earning it more coveted contracts.
If you are willing to be aggressive, now could be a good time to start a small position relative to your portfolio and add to it over time as the company continues to reach key milestones. However, hiccups could set back its projected earnings, so be mindful of the risks and size your position appropriately.
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Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
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