With Rivada's $2.4 Billion Satellite Contract, Terran Orbital Stock Surges

Shares of Terran Orbital rose in early trading on Wednesday after the company announced that it had won a $2.4 billion contract for the construction of communications satellites for Rivada Space Networks.

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At Terran's Tyvak subsidiary based in Irvine, California, the spacecraft manufacturer will be responsible for designing, manufacturing, and deploying 288 satellites for Rivada as part of the contract. As part of the contract, it will also build 12 spare satellites, for a total of 300 satellites, as well as developing parts of the ground support infrastructure.

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By 2025, Rivada plans to begin launching the constellation as early as possible. It is the company's goal to develop an interconnected global satellite network that will serve the telecommunications, enterprise, and government markets of the world.

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“We are delighted to have the opportunity to work alongside Rivada and look forward to working with them to build out their LEO constellation in the coming years,” Terran co-founder, chairman, and CEO Marc Bell said in a statement.

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Stocks of Terran jumped more than 70% in premarket trading, compared to their previous close of $1.71 a share, a jump of over 70%. Over the past year, the stock has dropped steadily since it made its debut at $11.80 a share on its first day of trading, just over a year ago.

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