WESTMINSTER, Colo. — (BUSINESS WIRE) — November 3, 2022 — Maxar Technologies (NYSE: MAXR) (TSX: MAXR) (“Maxar” or the “Company”), a provider of comprehensive space solutions and secure, precise, geospatial intelligence, today announced financial results for the quarter ended September 30, 2022.

Key points from the quarter include:

• Consolidated revenues of $436 million
• Net loss of $4 million
• Diluted net loss per share of $0.05
• Adjusted EBITDA¹ of $110 million ($115 million excluding a foreign exchange loss of $5 million)
• Operating cash flows of $191 million

1. This is a non-GAAP financial measure. Refer to section “Non-GAAP Financial Measures” in this earnings release.

“We made good progress in our business during the quarter. In Earth Intelligence, we continue to gain wider traction with the investments we’ve been making, especially in our 3D and platform capabilities, and are looking forward to the enhanced capacity coming online soon from the WorldView Legion satellites,” said Dan Jablonsky, President and Chief Executive Officer. “The Space Infrastructure segment performed well this quarter, generating solid margin expansion and program execution; and continues to be well positioned for wins across national defense, commercial and civil missions.”

“We generated positive free cash flow in the quarter and book-to-bill now stands at 1.8x on a year-to-date basis, driven by solid awards at both Earth Intelligence and Space Infrastructure,” said Biggs, Porter, Chief Financial Officer. “With Legion nearing launch, our existing backlog and the growth we expect from our diverse and expanding product offerings, we remain committed to substantial growth in earnings and free cash flow next year and over the long term. We are maintaining our prior targets for 2023, having only adjusted them for our recent refinancing activity.”

Total revenues remained relatively flat and were $436 million for the three months ended September 30, 2022, compared to $437 million for the same period of 2021.

For the three months ended September 30, 2022, our net loss was $4 million compared to net income of $14 million for the same period of 2021. The decrease in net income was primarily due to an increase in selling, general and administrative costs of $21 million, an increase in other expenses of $14 million, an increase in interest expense of $5 million and an increase in income tax expense of $5 million. This decrease was partially offset by a decrease in product costs of $19 million within our Space Infrastructure segment and a decrease in depreciation and amortization of $10 million for the three months ended September 30, 2022, compared to the same period of 2021.

For the three months ended September 30, 2022, Adjusted EBITDA was $110 million and Adjusted EBITDA margin was 25.2%. This is compared to Adjusted EBITDA of $113 million and Adjusted EBITDA margin of 25.9 % for the same period of 2021. The decrease was primarily driven by lower Adjusted EBITDA from our Earth Intelligence segment and an increase in corporate and other expenses. The decrease was partially offset by an increase in Adjusted EBITDA from our Space Infrastructure segment. The increase in corporate and other expenses was primarily driven by a $5 million foreign exchange loss for the three months ended September 30, 2022, compared to a $1 million foreign exchange loss for the same period of 2021.

We had total order backlog of $2,955 million as of September 30, 2022 compared to $1,893 million as of December 31, 2021. The increase in backlog was primarily driven by an increase in the Earth Intelligence segment partially offset by a decrease in the Space Infrastructure segment. Our unfunded contract options totaled $2,130 million and $650 million as of September 30, 2022 and December 31, 2021, respectively. Unfunded contract options represent estimated amounts of revenue to be earned in the future from negotiated contracts with unexercised contract options and indefinite delivery/indefinite quantity contracts. Unfunded contract options as of September 30, 2022 were primarily comprised of option years in the EOCL Contract (for the periods June 15, 2027 through June 14, 2032) and other U.S. government contracts. Unfunded contract options as of December 31, 2021 were primarily comprised of the option year in the EnhancedView Contract (September 1, 2022 through July 12, 2023) and other U.S. government contracts. On May 25, 2022, we were awarded the EOCL Contract by the NRO, which is a 10-year contract worth up to $3.24 billion, inclusive of a firm 5-year base contract commitment worth $1.5 billion and options worth up to $1.74 billion. The EOCL Contract transitioned the imagery acquisition requirements previously addressed by the EnhancedView Contract and, with this award, replaces the scope of the EnhancedView Contract with respect to such requirements.

Financial Highlights

In addition to results reported in accordance with U.S. GAAP, we use certain non-GAAP financial measures as supplemental indicators of its financial and operating performance. These non-GAAP financial measures include EBITDA, Adjusted EBITDA and Adjusted EBITDA margin. We believe these supplementary financial measures reflect our ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.