Iridium Communications ( (IRDM) ) has released its Q4 earnings. Here is a breakdown of the information Iridium Communications presented to its investors.
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Iridium Communications Inc., a leader in global mobile voice and data satellite communications, provides essential services across various industries, including maritime, aviation, and government sectors with its comprehensive satellite network.
Iridium Communications has reported its financial results for 2024, highlighting a record return of $469 million to shareholders. The company achieved a net income of $112.8 million for the year, significantly up from the previous year’s $15.4 million, primarily due to reduced depreciation expenses and increased engineering and support revenue.
Key financial metrics show a 5% increase in total revenue reaching $830.7 million, with service revenue making up a substantial $614.9 million. Operational EBITDA saw a slight growth of 2% to $470.6 million. The company also ended the year with an 8% increase in total billable subscribers, driven by growth in the commercial IoT sector.
Iridium’s commercial services, accounting for 60% of the company’s total fourth-quarter revenue, saw a 5% rise, while government service revenue increased by 1%. The company also experienced a notable growth in equipment and engineering support revenues, although equipment sales declined compared to the previous year.
Looking ahead, Iridium projects a service revenue growth of 5% to 7% for 2025, with an expected OEBITDA between $490 million and $500 million. The management remains optimistic about maintaining robust cash flow to support shareholder returns and anticipates continued service expansion across its diverse customer base.
