York Space Systems Reports Q3 2026 Revenue Decline and $749.7 Million Goodwill Impairment
York Space Systems (YSS) reported third-quarter 2026 revenue of $84.2 million, a 7% decrease year-over-year driven by lower revenue from the Tranche 1 program. The company faced significant headwinds due to a noncash goodwill impairment charge of $749.7 million, stemming from revised expectations regarding the timing of major contract awards and a share price trading below book value. Despite these challenges, management highlighted operational improvements, including a 78% reduction in satellite build time for Tranche 2 programs and an increase in contribution margin to 40%. The company maintains a strong identified pipeline of $14.9 billion and is expanding manufacturing capacity at its Potomac facility to support classified contracts. Full-year 2026 revenue guidance has been narrowed to a range of $380 million to $400 million.
Topics: backlog EBITDA loss goodwill impairment revenue decline satellite production