Key facts
- York attributed the loss to a $749.7 million noncash goodwill impairment charge linked to uncertainty about when future Pentagon contracts will be awarded.
- York changed its internal planning assumption because of the shifted Pentagon procurement climate, now expecting new government contract awards to land later in 2027 and extending into 2028.
- York reported revenue of $84.2 million, which fell short of the $90 million consensus by 6.5 percent and dropped about 7 percent compared with the prior year.
- Gross margin compressed to 18 percent from 22 percent compared with the prior year, mainly because revenue declined.
In its third-quarter 2026 results, published Nov. 13, 2026, York Space Systems posted a net loss of $807.4 million, compared with a $20.1 million loss in the same quarter of the prior year. The company’s loss came from a $749.7 million charge for noncash goodwill impairment, which it tied to uncertainty about when the Pentagon will award future contracts.
York stated that it cannot estimate when or how much U.S. government awards will be worth past 2026, pointing to the Space Development Agency‘s decision to change its tranche procurement schedule as the reason for the impairment. York revised its internal planning assumptions due to the changed Pentagon procurement climate; it now expects new Pentagon contract awards to arrive later in 2027 and extend into 2028.
GAAP results for Q3 2026 showed a per-share loss of $5.99, while analysts had estimated $0.23 per share, according to 24/7 Wall St. Revenue reached $84.2 million, missing the $90 million analyst consensus by 6.5 percent and falling about 7 percent from the prior year’s level. Gross margin shrank to 18 percent from 22 percent in the prior year, primarily because revenue fell. SG&A expenses rose to $50.3 million, from $31.5 million in the prior-year period.
According to 24/7 Wall St., adjusted EBITDA fell to a loss of $27.6 million, compared with a $3.4 million deficit in the prior-year period. R&D spending nearly doubled to $9.5 million, up from $4.5 million, as the company kept investing in new platforms. After excluding the goodwill charge, $7.9 million in stock compensation and $6.6 million in deal costs, the business is still weakening though much less severely.
With a $905 million market capitalization, the $749.7 million charge carries significant weight and is more than just an accounting abstraction. The company’s two-year government opportunity pipeline stands at $14.9 billion, up $3 billion from June 30, and covers only opportunities where it has direct customer conversations. York narrowed its full-year 2026 revenue guidance to a range of $380 million to $400 million. Dirk Wallinger, York’s chief executive officer, said the pipeline grew by more than 30 percent compared with the previous quarter and that IDIQ, or Indefinite Delivery Indefinite Quantity, awards are converting into funded task orders.
At the end of the third quarter, York’s backlog stood at $581 million and its cash position was $308.9 million entering the final quarter of 2026. York’s earnings per share shortfalls have widened in each quarter starting with the fourth quarter of 2025. The outcome depends on whether the pipeline converts into funded awards next year, because the write-down reflected uncertainty about that conversion.
York released its third-quarter financial results on Nov. 13, following the company’s Nov. 12 announcement of its acquisition of Outlook Industries. York announced its plan to acquire Australia’s Outlook Industries, creating a York Terrestrial Systems unit that focuses on robotic ground, surface and underwater defense platforms. Chief Executive Officer Dirk Wallinger cited a post-election environment that he believes will favor competition and vendor diversity, positioning York to benefit from any reallocation of government resources.
Shadow is a long-endurance unmanned ground system that York plans to use for persistent intelligence and mobile communications as the first York Terrestrial Systems platform. Shadow is designed to operate in demanding environments and survive gunfire and harsh conditions, connecting through ALL.SPACE terminals to York’s broader space and ground architecture. Shadow uses battery power plus an automatic fuel-powered generator to run for 30 to more than 45 days, and York will build the vehicle domestically.
York estimates the acquisition will open access to a $3.08 billion addressable market for robotic ground systems. Combined with ALL.SPACE terminals and the ATLAS ground network, the acquisition positions York to enter an estimated $10.31 billion market for robotic surface and underwater vessels.
The company’s infrastructure links spacecraft with roughly 50 ATLAS ground antennas around the world, and the firm flies five missions on three constellations from three operations centers. These assets form the backbone for connecting robotic platforms, operators and mission data in contested environments. The deal rests on York’s $755 million investment in production capacity and spacecraft inventory, together with growth in ground infrastructure, communications and software. Completion of the Outlook acquisition depends on regulatory approvals and other customary closing conditions.
York scheduled an investor call on Nov. 19 at 5 p.m. ET to discuss the proposed acquisition and expansion into unmanned systems. Dirk Wallinger serves as chief executive officer of York Space Systems. York Space Systems is listed on the New York Stock Exchange under the symbol YSS.
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