Although Intuitive Machines’ (LUNR) rather poor execution this year makes LUNR stock very risky, there’s also a great deal to like about the company’s outlook. A recent acquisition by the company could very well improve its execution, leaving it well-positioned to benefit meaningfully from trends in space that are likely to materialize over the longer term, and meaningfully improving its financial results.
What’s more, Washington appears to still be a big fan of LUNR, while the firm’s long-term strategy seems to be quite promising. Also importantly, the firm reported mostly encouraging third-quarter results and has a rather large backlog.
Given all of these points, I recommend that some investors consider buying relatively small amounts of LUNR stock.
subpar Execution and an Impressive Acquisition
Intuitive Machines’ moon lander fell over in March, causing its mission to be aborted in under 24 hours. The vessel landed 250 meters away from where it was supposed to touch down, the company reported. In February 2024, another moon lander sent by the firm also fell but managed to stay in service for a week.
However, LUNR last month agreed to buy Lanteris Space Systems for $800 million. According to Intuitive CEO Stephen Altemus, “Lanteris builds high value spacecraft with a strong commercial focus, “while its products have a record of 99.99% on orbit availability.” Moreover, Lanteris “operates world class production facilities totaling over 560,000 square feet,” Altemus added.
Given Lanteris’ long experience in building space systems (it was essentially founded under a different name in 1957) and its superb “orbit availability” ratio, I believe that the firm is likely to help Intuitive meaningfully improve its shipbuilding and ship management skills.
Further, Altemus asserted that Lanteris would help LUNR obtain new deals related to NASA’s Mars missions, the Trump administration’s anti-missile program, known as Golden Dome and supporting other companies’ initiatives in space. Since NASA seems determined to carry out the Mars mission, the Trump administration is already spending tens of billions on Golden Dome, and multiple firms are launching many satellites into space, all of these areas could easily become quite lucrative for LUNR.
A Promising Strategy, Good Numbers, and dc’s continued loyalty
One of Intuitive’s goals is “to extend the Internet of Things (IoT) from Earth into space, where vehicles and sensors become nodes on a network that collect, share, and act on data.” With multiple, major companies, including Amazon (AMZN), SpaceX, and Blue Origin launching many satellites and the latter two firms considering developing data centers in the “final frontier,” LUNR’s approach sounds quite promising.
Additionally, according to StockTwits, “hyperscalers including Alphabet, Microsoft, and IBM have been exploring space-related computing and infrastructure initiatives,” while multiple governments have also become quite dedicated to exploiting space. In such an environment, Intuitive’s strategy may prove to be very fruitful.
Last quarter, the company’s revenue rose to $52.44 million from $50.3 million during the previous quarter. Although the firm’s top line dropped last quarter from the $58.5 million that it generated in Q3 of 2024, the sequential increase was still a positive development. Similarly, its EBITDA came in at -$14.36 million, much improved versus Q2’s -$27.9 million and down only a bit from -$13.24 million in Q3 of 2024.
What’s more, the company has a high backlog of nearly $236 million, along with another $123 million of remaining contractual obligations that are not included in the backlog due to accounting rules. Cumulatively, the numbers suggest that the firm is rebounding from the bottom it reached in Q2 of 2025, while it will generate plenty of revenue from its backlog. Additionally, the acquisition of Lanteris, which generated about $630 million of revenue in the 12 months that ended in September and produces positive cash flow, will significantly boost LUNR’s financial results. Indeed, Intuitive reported that the combined company would have positive EBITDA, excluding some items.
LUNR’s continued high backlog, along with an $8.2 million deal with the Air Force that it disclosed in October, indicate that it remains in Washington’s good graces.
The Bottom Line on LUNR Stock
Intuitive Machines’ subpar execution makes it rather risky. However, the company’s acquisition, strategy, and financial results are all positive, while Washington still appears to believe in it.
In light of all of these points, I believe that risk-tolerant growth investors looking for increased exposure to the space economy can consider investing small amounts of their portfolios in the name.
*This article is intended to be informational only; it is not financial advice.
