Firefly Secures Major Engine Contract

Firefly Aerospace has signed an agreement valued at more than $1.3 billion to supply engines for AST SpaceMobile’s new Blacklift rocket, marking a significant commercial development for both companies.

Under the agreement, Firefly will manufacture and deliver 27 Miranda engines and nine in-space Vira engines for the first three Blacklift rockets. The deal also grants AST SpaceMobile licensing rights that would eventually allow the satellite company to manufacture the engines independently.

The announcement reflects growing efforts among satellite operators to secure greater control over launch capacity as access to rockets becomes increasingly constrained.

Following the announcement, Firefly shares gained approximately 18%, while AST SpaceMobile shares rose about 1%.

AST SpaceMobile Moves Toward In-House Launch Capabilities

AST SpaceMobile’s Blacklift development represents an expansion beyond its core satellite communications business. The company is working to establish its own launch capability as it seeks to deploy a constellation designed to provide global cellular broadband directly to mobile phones.

The rocket is designed for reusability and is expected to carry as many as five BlueBird satellites per launch. AST SpaceMobile is targeting late 2028 for its debut mission, an ambitious development schedule.

Despite pursuing its own launch vehicle, the company intends to continue using external providers. It currently has more than 100 launch agreements in place and is targeting a total deployment of 248 satellites to complete its planned global broadband network.

Approximately a dozen BlueBird satellites have been launched since 2024 using rockets operated by SpaceX, Blue Origin, and the Indian Space Research Organisation. However, a previous BlueBird mission encountered difficulties after a problem with Blue Origin’s New Glenn rocket placed a satellite into a lower-than-planned orbit, ultimately resulting in its loss.

Firefly Expands Production and Engine Development

The agreement provides Firefly with substantial funding to accelerate manufacturing and testing activities across its rocket programs.

The company plans to use the additional resources to expand testing capacity at its Rocket Ranch manufacturing and testing facility in Briggs, Texas, purchase long-lead materials, and increase its engineering and technical workforce.

The Miranda engine is also central to Firefly’s next-generation Eclipse rocket, whose first launch is planned for 2027. Its existing Alpha rocket uses a different engine, known as Reaver.

The agreement includes a non-competitive arrangement under which AST SpaceMobile will launch its own satellites while Firefly continues serving the broader government and commercial launch markets.

US Rocket Industry Faces Capacity Constraints

The agreement comes amid increasing pressure on the US launch industry to expand production capacity. Satellite operators have faced difficulties securing launch opportunities as major providers increasingly prioritize their own constellation deployments.

SpaceX’s Falcon 9 has played a dominant role in the launch market, while the anticipated retirement of the vehicle in the coming years adds another consideration for the industry’s longer-term capacity planning.

Other companies are also expanding their launch capabilities. Blue Origin recently introduced its Northstar rocket engine and announced an expanded version of New Glenn featuring a third stage, designed to carry heavier payloads to more precise orbital destinations.

These developments reflect a broader industry shift toward larger and more vertically integrated launch systems.

What Investors Should Watch Next

The next major milestones will include Firefly’s ability to scale engine production, AST SpaceMobile’s progress in developing Blacklift, and the companies’ ability to meet the targeted late-2028 launch schedule.

For Firefly, the agreement offers a significant commercial opportunity while supporting development of its Eclipse rocket. For AST SpaceMobile, the project could provide greater control over satellite deployment, although the company plans to retain external launch partnerships as its constellation expands.

The execution of the agreement will be important in determining how effectively both companies can translate their plans into additional launch capacity.