Firefly Aerospace IPO: shares of SpaceX competitor become available

Shares of SpaceX competitor Firefly Aerospace, a company that supplies space and defense technology in the form of launch vehicles and spacecraft, have become available on the Freedom customer trading system. Firefly is known for, among other things, becoming the first commercial company from the U.S. to successfully land on the moon in March 2025. The securities are listed under the ticker FLY and will appear on the Nasdaq exchange in a few hours.

Firefly Aerospace raised $868.3 million in its IPO, selling 19.3 million shares at $45 a share - well above even its increased price range. The company originally planned to sell 16.2 million shares at $35-39 apiece on the exchange, but raised the range to $41-43 a few days before the offering. 

At the end of the listing, the company's valuation was more than $6.4 billion, Barron's calculated.

The placement was organized by Goldman Sachs, JPMorgan, Jefferies, Wells Fargo Securities, Morgan Stanley, Deutsche Bank Securities and Cantor. 

In its offering prospectus, Firefly emphasized that much of its revenue comes from government contracts. Last year, the company's total sales reached $60.8 million and total debt reached $173.6 million, reports Inc.com. The funds raised through the IPO are planned to be used specifically for debt repayment. 

Texas-based Firefly Aerospace was founded in 2017. It builds launch vehicles, space tugs and lunar landing modules. Its partners include major defense industry players Lockheed Martin, L3Harris, NASA and Northrop Grumman, the latter of which invested $50 million in Firefly, writesCNBC.

The company's platform includes two key businesses - Launch and Spacecraft Solutions. Launch offers two rockets based on common technologies: Alpha, an operational launch vehicle that has successfully completed four launches, and Eclipse, its reusable and scalable version being developed in partnership with Northrop Grumman. The first launch of Eclipse is expected to take place as early as 2026; the project is in the final stages of preparation;

The Spacecraft Solutions business covers the development of the Blue Ghost landing module and the Elytra orbiter. These highly maneuverable space systems are equipped with advanced rocket engines and are designed to support demanding missions in orbit and beyond;

In March 2025, Firefly became the first commercial company from the United States to successfully land on the Moon. The Blue Ghost module landed near the Mons Latrielle volcanic formation, bringing NASA equipment to the Moon to study the surface as well as weather and atmospheric conditions;

In late July, it was reported that NASA selected Firefly Aerospace to deliver a payload to the Moon's south pole region in 2029. The contract amounted to $176.7 million. 

Then in July, the company announced plans to go public - amid growing interest in space technology.

According to Freedom analyst Alem Bektemirov's calculations, the target on Firefly shares is $57, which implies a potential upside of more than a quarter relative to the offering price. Bektemirov is positive on the company's prospects and forecasts steady revenue growth from $61 million in 2024 to $9.95 billion by 2034. This optimistic scenario is based on two factors: growing demand from the national security sector and active commercialization of space technologies, the analyst explains.

The global space launch industry is facing a limited supply of orbital launch vehicles amid a surge in satellite programs, creating a favorable environment for players like Firefly. The company has already seen its contract base grow at a rapid pace: as of March 31, 2025, contract awards reached $1.11 billion, nearly double what they were in the same period in 2024, Bektemirov notes.

At the same time, Firefly remains exposed to a number of operational and strategic risks, the analyst points out. First of all, it may face technical failures, including launch delays, unsuccessful missions and failure to deliver vehicles to the specified orbits. Such events could significantly affect its financial performance, leading to lower revenues and higher operating costs. An additional risk is related to its international expansion plans. Expansion outside the U.S. may entail difficulties related to the regulatory environment, logistics, political instability and currency fluctuations, which could negatively affect the operational efficiency and profitability of the business, Bektemirov said.

The space sector is coming back to life after a lull in the IPO market, with another company in the sector, Voyager, going public in June, reminds CNBC. After a high-profile market debut, its shares rose 82% on the first day, but then corrected. The paper is now worth about 27-30% less than it was at the close on the first day of trading.

Overall, the IPO market is trending positive given the recent successful listings of technology companies such as software developer Figma and steblecoin issuer Circle, notes IPOX analyst Lukas Muehlbauer in a commentary for Reuters.  "While the July jobs report cooled the macro economy, it raised the likelihood of a rate cut, which could smooth volatility and support positive sentiment in the IPO market in the fall," the analyst said.  

A narrowing of the price range - as in the case of Firefly Aerospace usually indicates strong investor demand, he said. 

According to PitchBook analyst Ali Javaheri, while the number of IPOs remains at the same level as last year, company valuations in 2025 are significantly higher, indicating growing investor confidence in the long-term potential of the space industry.  "Defense budgets are rising amid geopolitical instability, creating a steady stream of government contracts for dual-use companies and space startups," said the analyst, he quoted Morningstar. 

According to a forecast by McKinsey, the global space industry will reach $1.8 trillion by 2035, fueled by both growing defense budgets and increasing commercial interest in space exploration, notes Inc.com. 

Against this backdrop, the U.S. is renewing its focus on space programs, which are increasingly being placed in the hands of private companies, writes Reuters. Large-scale defense initiatives, such as the $175 billion Golden Dome space defense project, are spurring increased private investment in the industry. 

PitchBook's Jawaheri points out that government agencies - including the U.S. Department of Defense and NASA - are increasingly relying on tech startups that can deliver faster, more affordable and innovative solutions than traditional contractors. With less bureaucracy, young companies often develop more effective products and deploy them more quickly to real-world missions. 

An additional factor influencing the redistribution of attention in the industry was the escalating relationship between U.S. President Donald Trump and SpaceX CEO Ilon Musk. Although SpaceX remains a key contractor for the U.S. Army and NASA, this situation is prompting government agencies to expand the range of partners, reminds CNBC. 
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Freedom clients will be able to trade in Firefly shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the U.S. exchanges open (from 15:30-16:30 Astana time). To participate, click on the ticker FLY.

This article was AI-translated and verified by a human editor