Iridium Communications delivered a solid QQ3 2024 quarter with revenue of $212.8 million, up 7.7% year over year and 5.8% quarter over quarter, supported by a resilient gross margin of approximately 49.3% and an EBITDA of $106.3 million. Net income of $24.4 million contributed to earnings per share (EPS) of $0.21, reflecting a meaningful improvement from prior periods as the business benefited from mix and operating leverage. Operating income stood at $54.9 million with an operating margin near 25.8%, underscoring a modestly expanding profit profile on a top‑line that remains stable within a high‑utilization satellite network services framework.
The quarter showcased strong cash generation, with net cash from operating activities of $118.6 million and free cash flow of about $100.0 million, supported by disciplined capital expenditure of $18.6 million. The company ended the period with cash and cash equivalents of $159.6 million, total debt of $1.795 billion and net debt of roughly $1.635 billion, yielding an interest coverage close to 2.0x. The balance sheet remains burdened by high leverage, but cash flow generation provides a plausible path to deleveraging while funding ongoing network and growth initiatives.
From an investment perspective, Iridium’s core differentiator remains its global satellite connectivity platform with sizable long‑cycle government and enterprise demand. The company is positioned to monetize expanding IoT, asset tracking, and hosted payload opportunities, which could support both revenue stability and incremental cash flow. However, the short‑to‑mid term risk profile is driven by high indebtedness, ongoing capital commitments, and competitive dynamics in the satellite communications ecosystem. Valuation metrics imply a premium versus broader telecom peers, reflecting the unique asset base and growth optionality, but investors should monitor leverage maturation, free cash flow conversion, and any potential developments in government contracting pipelines.