Firefly Says AST Will Build Its Own Engines As Licensing Funds Eclipse Expansion
The initial supply covers three AST flights, while Firefly expects licensing and support revenue to follow its own work.
Firefly Aerospace, which builds rockets and spacecraft for government and commercial customers, expects AST SpaceMobile eventually to manufacture its own Miranda engines, Chief Executive Officer Jason Kim said on the company's earnings call Tuesday. Firefly's more than $1.3 billion agreement combines engine technology licenses, deliveries and engineering support; Kim argued that the funding will accelerate Firefly's Eclipse rocket.
Three Flights, Then AST Manufacturing
“AST is going to eventually build the Miranda engines themselves,” Kim said. A Barclays analyst had asked whether AST's future launches would produce engine revenue beyond the upfront license payment.
Firefly's initial commitment is 36 engines for AST's first three flights: 27 Miranda first-stage engines and nine Vera upper-stage engines. AST is responsible for designing Blacklift, its reusable three-stage rocket intended to carry 20 metric tons into low Earth orbit.
The deal, announced Friday, includes a perpetual manufacturing license. AST targets launches beginning in late 2028, a timetable New Street Research analysts considered ambitious.
Kim said Firefly retains ownership of its engine intellectual property and described AST as focused on deploying its own satellite constellation, which provides cellular broadband directly to everyday smartphones. Asked by a KeyBanc analyst about competitive boundaries, he emphasized Firefly's continuing government and commercial launch business.
“this does not change our identity or our business model,” Kim said.
Revenue Follows Work And Deliveries
Cash of $400 million plus 10 million to 14 million AST Class A shares make up approximately $800 million in engine-license payments, Chief Financial Officer Darren Ma said. Support services account for $250 million, and engine deliveries account for another $250 million.
Firefly will record licensing and support revenue as it completes work, while engine revenue will be booked when engines reach the customer. The agreement's revenue belongs in Firefly's launch business.
Asked whether delays in AST's rocket program would affect those bookings, Ma said, “I don't believe it has any impact on us in terms of revenue recognition.” His distinction puts Firefly's execution, rather than AST's eventual launch date, at the center of the expected revenue ramp.
Ma expects revenue to begin ramping meaningfully next year, engine deliveries to start in the agreement's second year, and revenue to increase through its third year. He expects licensing and support work to expand gross margins, but cautioned that the agreement requires substantial research, capital spending and infrastructure investment.
Eclipse Funding, Alpha Delay
Kim said AST funding will support hiring, bulk purchases of long-lead materials and additional testing capacity for Eclipse, the larger reusable rocket Firefly is developing with Northrop Grumman. The company also operates the smaller Alpha rocket, Blue Ghost lunar landers, Elytra orbital spacecraft and defense software from SciTec.
Miranda's qualification campaign is underway. Kim reported more than 175 hot-fire tests, totaling 4,230 seconds across 20 engines, as Firefly works toward Eclipse's first launch.
Firefly raised its 2026 revenue outlook to $440 million–$450 million from $420 million–$450 million, Ma said. He attributed the higher floor to spacecraft and AI software work offsetting launch revenue pressure.
Alpha Flight 8 shifted into the first quarter of 2027 at a national-security customer's direction, despite Firefly's preference to launch before year-end. The flight will debut the Block II configuration, designed to improve manufacturing rate and reliability.
Firefly plans to give its 2027 Alpha launch target on its fourth-quarter earnings call.
Sources
- Firefly Aerospace results release (Form 8-K, EX-99.1) — SEC EDGAR
- Firefly Aerospace Narrows 3Q Loss as Revenue Takes Off — MarketWatch
- Firefly Aerospace: Q3 Earnings Snapshot | 9news.com — Associated Press
- Firefly Aerospace, AST SpaceMobile sign $1.3B rocket-engine supply deal — Yahoo Finance
- Firefly sees business opportunities as Pentagon turns to cislunar space - SpaceNews — spacenews.com
- AST SpaceMobile's 'Blacklift' rocket gambit draws skepticism — lightreading.com
