Maxar Continues to See Revenues Decrease in Q3 2019
Maxar Technologies reported its financial results for the Third Quarter (Q3) ended Sept. 30, in which revenues declined declined 5.9 percent to $479 million, compared to Q3 2018. The decrease in revenues was primarily driven by a $43 million decrease in the Space Systems segment. The decrease was partially offset by a $10 million increase in the Imagery segment and an $11 million increase in revenues in the Services segment. This continues the trend from Second Quarter (Q2) 2019, in which Maxar also saw revenues decrease.
In Q3 2019, there was a net loss of $26 million compared to net loss of $289 million in the comparative period of 2018. The increase is primarily driven by impairment losses taken in the third quarter of 2018 that did not occur in 2019. Additionally, in Q3 2019, Adjusted EBITDA was $128 million. This is compared to Adjusted EBITDA of $105 million for Q3 2018. The increase was driven largely by higher Adjusted EBITDA from the Space Systems and Imagery segments, partially offset by higher corporate and other expenses.
“We continued to make solid progress this quarter on our near-term priorities to position Maxar for sustained top and bottom-line growth, including efforts to reduce debt and leverage levels, re-engineer the Space Solutions business, position our Imagery, Services, and MDA businesses for long-term growth, and create a leaner, more agile organization with a reduced cost structure,” stated Maxar President and CEO Dan Jablonsky. “We recently signed a sale-lease back transaction on a facility in Palo Alto, California that we expect to reduce debt and leverage, and we garnered important wins in our Space Systems business, including initial work on Canadarm3 and the TEMPO instrument for NASA. We also saw solid bookings and revenue growth in our Imagery and Services segments, including a four-year contract award for our Global-EGD service, a program to support a GEOINT Cloud Architecture for US Air Force, and the addition of another country to the installed base for the Company’s Rapid and Direct Access Program.”