Firefly Signs Deal Worth About $1.3 Billion to Supply AST With Blacklift Engines
Key Facts
Firefly Aerospace estimated total consideration under its two agreements with AST SpaceMobile at about $1.3 billion, according to its quarterly filing with the U.S. Securities and Exchange Commission. The consideration is split between an intellectual property licensing agreement and an agreement to supply engines and engineering services, and will be paid in cash and shares. The agreements are part of AST's efforts to build its Blacklift rocket, with the company receiving the right to manufacture rocket engines using intellectual property from Firefly. Firefly will manufacture, test and deliver Miranda and Vira engines ready for flight for the first three launches. It will also provide an engineering team, support services and training, according to the company's filing.
The intellectual property license includes about $800 million upfront, of which $400 million is in cash, while the remainder will be determined by issuing between 10 million and 14 million Class A shares based on a forward volume-weighted average price calculation. The supply and services agreement adds $250 million for delivering engines for the first three rockets, and $250 million for engineering support services over three years. This structure combines cash and share payments with fees tied to delivery and services. The deal therefore goes beyond selling engines, also including the transfer of rights that allow AST to manufacture the engines itself. The total value remains an estimate of the consideration set out in Firefly's filing.
AST is targeting late 2028 for use of Blacklift, which it plans to make reusable. The company says the rocket will be able to carry up to five BlueBird satellites in a single launch. AST's chairman said the Miranda engine would help the company bypass a traditional development cycle of five to ten years as it builds the rocket. The agreement puts Firefly in the role of engine supplier and engineering supporter during Blacklift's development, while AST receives a manufacturing license. AST announced that the Blacklift reveal event will take place in New York on November 12, 2026.
Blacklift's development does not mean AST will stop using external launch providers in the near term. The company said its current agreements cover more than 100 BlueBird satellites, scheduled for cumulative deployment during 2027 and 2028. That timetable precedes the target date for using the new rocket in late 2028. This reflects AST's continued reliance on existing launch arrangements alongside work to build its own launch capability. The company aims for Blacklift to provide regular, unrestricted access to orbit, according to its filing.
Firefly's quarterly results place the deal within a growth trajectory and rising order backlog. Revenue reached $110.7 million in the third quarter of 2026, up 259% year over year. Backlog hit a record $1.7 billion at the end of the quarter, compared with $1.5 billion at the end of the previous quarter. The company also said the expansion of its clean spacecraft manufacturing room had begun operations, and that the facility enables the simultaneous assembly and integration of up to 12 lunar landers and orbital vehicles. Firefly forecast fiscal 2026 revenue of between $440 million and $450 million.
In its launch business, Firefly said it extended its multi-mission launch agreement with Lockheed Martin to include up to 25 launches of the Alpha rocket through 2031, using the Block II configuration. In market trading, Reuters reported that Firefly shares rose about 18% after the deal was announced on November 6, 2026, while AST SpaceMobile shares gained about 1% in the initial reaction. The move reflects the two stocks' differing responses to the announcement that day. The deal combines near-term engine supply, a manufacturing license and engineering support over three years. AST's next announced date for the project is the Blacklift reveal event on November 12.