Firefly, AST SpaceMobile Stocks Rise on $1.3B Rocket Engine Deal: What’s Happening?

Firefly Aerospace Inc. (NASDAQ:FLY) and AST SpaceMobile Inc. (NASDAQ:ASTS) shares are trading higher Friday after Firefly announced a rocket engine agreement with AST SpaceMobile valued at more than $1.3 billion. The move may also reflect a recovery in space and defense stocks after losses Thursday, when concerns about military spending following Democrats’ midterm gains weighed on the sector.

• Firefly stock is showing exceptional strength. Why is FLY stock up today?

Firefly to Deliver 36 Rocket Engines, License Engine Technology to AST SpaceMobile

Under the three-year agreement, Firefly will deliver 27 of its Miranda engines and nine of its vacuum-variant Vira engines for AST SpaceMobile’s first three heavy-lift rockets, and provide AST SpaceMobile with a license to manufacture the engines, along with engineering support. AST SpaceMobile will pay Firefly more than $1.3 billion, consisting of cash and shares of AST Class A common stock, the latter subject to various lock-up periods.

Firefly retains full ownership of its engine intellectual property and will continue to serve the broader government and commercial launch market. The companies said the agreement is non-competitive by design.

“This is a bold transformational deal for Firefly, for AST SpaceMobile, and for the space industry,” said Jason Kim, Firefly’s CEO. He said AST SpaceMobile gets control of its own launch schedule, and Firefly gets added funds to expand rocket production. AST SpaceMobile Chairman and CEO Abel Avellan said Firefly is one of a few U.S. companies with a proven liquid engine of this scale.

Firefly to Expand Hiring, Test Bays and Launch Vehicle Production

Firefly said the funds will let it expand hiring, buy long-lead materials, source equipment and build multiple new test bays at its Rocket Ranch in Briggs, Texas, to increase production and testing of its own launch vehicles. Its Miranda engine, rated at 230,000 pounds of thrust, has completed more than 175 hot fire tests totaling more than 4,200 seconds, including a flight-like test that ran 20 seconds beyond the nominal 206-second flight duration. Firefly will discuss the agreement on its third-quarter earnings call at 5 p.m. ET on Tuesday, Nov. 10.

Firefly and AST SpaceMobile Shares Race Higher

Price Action: At the time of publication, Firefly shares are trading 12.45% higher at $17.06, according to data from Benzinga Pro.

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