Firefly Aerospace Targets $600 Million IPO Amid Robust Sales and Expanding Space Ventures

Firefly Aerospace, a Texas-based space technology company, has announced its plans to pursue an initial public offering (IPO), intending to offer 16.2 million shares of common stock. The pricing for the offering is proposed to range between $35 and $39 per share. Analysts predict the IPO could raise approximately $600 million at the midpoint of this price range. Furthermore, Firefly plans to grant underwriters a 30-day option to purchase up to an additional 2.42 million shares at the IPO price.

In its recent filing with the Securities and Exchange Commission, Firefly disclosed its estimated financial results for the first half of 2025, marking a shift from being privately owned to publicly traded on the Nasdaq under the stock ticker symbol "FLY." The company reported that its net loss for the first half of 2025 is projected to widen, with estimations sitting between $123.9 million and $125.9 million, compared to an actual loss of $106.2 million in the same period of the previous year. When excluding interest, share-based compensation expenses, and other costs, the adjusted losses are estimated at $95 million to $97 million, slightly higher than last year's $94.8 million.

Despite these projected losses, Firefly's sales appear robust, with an expected growth to between $70.4 million and $71.4 million, significantly exceeding the $29.4 million recorded in the first half of last year. The company reported total sales of $60.8 million for the entirety of 2024, alongside a net loss of $231.1 million. Firefly's backlog as of the end of June was reported to be $1.1 billion, up from $754.2 million a year prior. Meanwhile, free cash flow is anticipated to be an outflow ranging from $96.5 million to $98.5 million for the first half of 2025.

Firefly's business portfolio includes supplying small launch services with its Alpha rocket and developing Eclipse, a medium-lift launch vehicle. This development effort is supported partly by a $50 million equity investment from aerospace giant Northrop Grumman. Additionally, the company has expanded into spacecraft developments, making headlines with its successful build and landing of the Blue Ghost lunar lander.

As of the end of March, Firefly maintained total debt of $173.6 million. The proceeds from the IPO are intended for repaying borrowings and general corporate purposes. The principal stakeholder in Firefly is the private equity firm AE Industrial Partners, which currently holds a 47.4 percent stake. AE Industrial Partners is expected to retain a 41 to 42 percent ownership once the IPO is complete. Furthermore, Firefly reported having 296 engineers and 173 skilled technicians as of late June.

The company is positioning itself aggressively in the competitive market of small- and medium-lift launch vehicles and lunar services. With the planned public offering, Firefly Aerospace aims to leverage its innovative technologies and expanding market presence towards long-term growth and profitability. As it transitions into a publicly traded entity, the success of the IPO could play a critical role in enhancing Firefly's capabilities and market stance, paving the way for future developments in its aerospace endeavors.