BlackSky (BKSY) reported strong fourth-quarter financial results on February 26, while the U.S.-based company has powerful, positive catalysts both at home and overseas. Finally, the valuation of BKSY stock is quite attractive.
In light of all of these points, I believe that the shares are worth buying for medium-to-long-term investors.
As I reported in a previous column, BlackSky “provides intelligence using detailed satellite imagery.”
Impressive Q4 Earnings
The company’s revenue advanced to $35.2 million in the fourth quarter, representing an increase of 16% versus the same period a year earlier, while its EBITDA, excluding certain items, climbed to $8.8 million from $7.4 million in Q4 of 2024. Much more impressively, the firm’s backlog soared 32% year-over-year to $345 million.
And for all of 2026, BlackSky predicts that its revenue will advance to $120 million to $145 million, while it expects to generate adjusted EBITDA of $6 million to $18 million this year. During 2025, it reported $107 million of sales and just $900,000 of adjusted EBITDA.
Strong, Positive Domestic Catalysts
BlackSky is continuing to obtain sizeable, new orders from Washington. On March 31, the company announced that it had received a new, “multi-year” $99 million contract from the Air Force Research Laboratory (AFRL).
Under the agreement, BKSY will attempt to develop new optical imaging capabilities. In conjunction with the deal, the firm will also seek to “support more novel applications in high-cadence Earth monitoring and observing objects in low Earth, geostationary and cis-lunar orbits.”
And speaking on BlackSky’s Q4 earnings call, CEO Brian O’Toole noted that the National Geospatial-Intelligence Agency (NGA) had awarded the firm “additional options” related to its “AI capabilities” under their contract which may be worth as much as $290 million for BlackSky. O’Toole noted that the options would generate additional revenue for the company. NGA’s decision to activate the options validates the firm’s AI technology.
Also importantly, the CEO reported that BKSY had “continued to win new orders through the U.S. Space Force Global Data Marketplace” and added that “We expect to continue (our) momentum and unlock additional revenue growth while we (add new satellites) throughout the year. ”
Finally, after the U.S. reportedly had difficulties locating Iranian missile launchers, the Trump administration’s interest in BlackSky’s offerings may have significantly increased.
Powerful, Positive Overseas Catalysts
O’Toole reported that the company had been “winning new contracts for…. space-based intelligence solutions over the past several years (from foreign governments), and..(had) successfully captured major programs with customers in India, Indonesia, and others for” its latest offerings.
The demand from foreign governments for the company’s offerings is increasing as many more nations begin launching space programs, the CEO noted.
Impressively, BlackSky recently disclosed a new deal with an overseas government worth at least $10 million after signing two contracts worth a combined total of more than $130 million with a pair of foreign countries in 2025.
Valuation and the Bottom Line on BKSY
The company’s Enterprise Value/EBITDA ratio is just 6.56, versus the S&P 500’s average EV/EBITDA level of 18.7 times. In light of the company’s high growth levels and powerful positive catalysts, its shares are quite cheap, making BKSY stock very enticing for longer-term investors.
*This article is intended to be informational only; it is not financial advice.
