Globalstar, Inc. GSAT recently held its Investor Day 2024 event, where it emphasized the company’s prospects by leveraging its core assets, expanding its technological capabilities and issuing robust financial targets. GSAT boasts its global presence across various categories, from government and wholesale consumer partnerships to retail consumers to IoT, XCOM RAN and Band n53.

Following the event's major financial updates and announcements, GSAT’s shares went up 3.7% and closed at $1.95 on Dec. 20, 2024.

GSAT Advances Terrestrial Wireless (XCOM RAN + Band n53)

Globalstar’s XCOM RAN solution is set to bolster 5G architecture with a focus on mission-critical applications. This innovative, high-performance 5G system is designed to seamlessly address automation and industrial needs, facilitating deployment for critical infrastructure. It is tailored for high-value sectors, including warehouse automation, dense industrial 4.0, manufacturing, ports and logistics facilities. A key global retailer has already begun deploying the XCOM RAN solution, with full-scale implementation planned in 2025.

By targeting automation and industrial applications, Globalstar positions itself at the forefront of industrial 5G, meeting the demands of a rapidly evolving market.

GSAT’s Band n53 is a steady and growing spectrum resource without borders, gaining momentum as a critical enabler of 5G innovation. Band n53 MHz is combined with XCOM RAN. It is currently deployed in 12 countries, serving roughly 1 billion people. This includes comprehensive coverage across the United States, Canada and Mexico. The asset could be valued in the range of 5 cents to $2 per MHz-POP in the United States, translating to $1-$4 per share. Management aims to generate steady cash flow from spectrum leases to support long-term value.

Besides unlocking new revenue opportunities, Band n53 offers aggregation potential with CBRS to further enhance its capabilities. GSAT plans to cover 25% of the total addressable market (TAM), including Manufacturing, Ports & Maritime Transport and Warehousing & Other, at a CAGR of 30% from 2025 to 2030.

GSAT Expands Mobile Satellite Services (“MSS”)

Globalstar has solidified its footprint in the retail consumer space with significant milestones and achievements. The company generated $44 million in annual service revenues in 2023, fueled by approximately 260,000 active subscribers. In 2024, it celebrated a milestone of 10,000 rescues. With a strong outdoor and adventure market presence, Globalstar continues to enhance customer engagement, backed by robust distribution channels.

The Commercial IoT segment serves as a key growth driver for Globalstar. Currently serving an average of 481,000 active devices, GSAT supports verticals such as transportation and supply-chain logistics, fleet management, animal tracking and automotive IoT. The segment generated $23 million in annual service revenues in 2023, with a projected TAM of $2.4 billion. Globalstar's LEO satellite network provides affordable global asset connectivity, enabling tracking and monitoring to minimize downtime, enhance efficiency and prevent losses.  It is investing in emerging two-way technology to enhance product capabilities, including cost, size, weight and power improvements. These advancements aim to drive higher APRU and expand market opportunities.

Globalstar’s government and wholesale consumer partnerships further strengthen its market position. It announced a partnership with Parsons for public sector and defense applications in December 2024.

Globalstar, Inc. Price and Consensus

Globalstar, Inc. price-consensus-chart | Globalstar, Inc. Quote

GSAT enhanced service agreements with updates to the wholesale customer agreement, including a new satellite constellation, expanded ground infrastructure and increased global MSS licensing. These agreements ensure Globalstar retains 100% of terrestrial, MSS and other revenues while allocating 85% of network capacity to wholesale customers and reserving 15% for direct MSS customers.

In the first year of launching expanded Satellite Services, Globalstar expects its total annual revenues to more than double compared to 2024, with a better EBITDA margin.

GSAT’s Financial Performance and Long-Term Growth View

Globalstar’s financial outlook highlights its focus on sustainable growth and profitability. At the Investor Day 2024, the company reconfirmed its full-year revenue guidance of $245-250 million, with an adjusted EBITDA margin of 54%. For 2025, revenues are expected to be in the band of $260-285 million, with an adjusted EBITDA margin of approximately 50%. These projections are fueled by strategic investments in terrestrial networks and long-term growth initiatives.

Going forward, Globalstar anticipates its revenues to more than double, exceeding $495 million, with adjusted EBITDA margins surpassing 54%. Additional upside potential lies in the expansion of the terrestrial spectrum and XCOM RAN.

With a loyal customer base and continued investment in innovative solutions, Globalstar is well-positioned to capture new market opportunities in the consumer and commercial IoT segments. Also, partnerships with Parsons and wholesale customers boost its ability to deliver advanced satellite services while maintaining strong revenue streams.

GSAT’s Zacks Rank & Stock Price Performance

Globalstar currently carries a Zacks Rank #2 (Buy). Shares of the company have soared 84% in the past six months compared with the industry's growth of 26.9%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are InterDigital, Inc. IDCC, Celestica Inc. CLS and Plexus Corp., Inc. PLXS, presently sporting a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%.

CLS provides competitive manufacturing technology and service solutions for printed circuit assembly and system assembly, as well as post-manufacturing support to many of the world's leading original equipment manufacturers. In the last reported quarter, it delivered an earnings surprise of 10.64%. 

Plexus is a leading provider of electronic contract manufacturing services to original equipment makers in a wide range of industries, including Healthcare/Life Sciences, Industrial and Aerospace/Defense market sectors. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.

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