Firefly Aerospace Signs Engine and Licensing Deal Worth More Than $1.3 Billion With AST SpaceMobile

Key Points

• Firefly Aerospace will supply 36 rocket engines for AST SpaceMobile’s first three heavy-lift rockets.
• The three-year agreement includes engine deliveries, intellectual property licensing and engineering support.
• AST SpaceMobile will pay more than $1.3 billion through a combination of cash and Class A shares.
• Firefly retains ownership of its engine intellectual property while licensing AST SpaceMobile to manufacture the engines.
• Firefly plans to use the funding to expand production, testing infrastructure and engineering capacity.

Firefly Aerospace (Nasdaq: FLY) has signed a major engine agreement with AST SpaceMobile (Nasdaq: ASTS), connecting Firefly’s propulsion technology with AST’s plans to develop its own heavy-lift rocket.

The agreement gives Firefly additional resources to accelerate its launch-vehicle programs while supporting AST SpaceMobile’s effort to gain greater control over its launch schedule.

Agreement Covers 36 Engines and Manufacturing Rights

Firefly will deliver 27 Miranda engines and nine vacuum-variant Vira engines for AST SpaceMobile’s first three rockets.

Beyond the hardware, the agreement provides engineering support and a license allowing AST SpaceMobile to manufacture the engines. Firefly will retain full ownership of the underlying intellectual property and continue serving other government and commercial launch customers.

The supplied information does not specify whether the license is exclusive, its duration or any restrictions on future engine production.

Payment Combines Cash and AST SpaceMobile Shares

The total consideration exceeds $1.3 billion and consists of cash and AST SpaceMobile Class A common stock. The shares are subject to various lock-up periods.

The cash-to-stock split, payment schedule and valuation terms were not provided. The headline amount therefore should not be treated as immediate cash proceeds or revenue recognized at signing.

The stock component also means part of the consideration is subject to share-price exposure and restrictions on when Firefly can sell it.

Firefly Plans Production and Testing Expansion

Firefly intends to use the additional resources to expand hiring, purchase long-lead materials and equipment, and strengthen infrastructure.

Planned additions include multiple test bays at its Briggs, Texas, facility. The company also expects increased engineering capacity to support milestones across its core programs and broader technology roadmap.

These are planned uses of the funding; no quantified production increase or revised program schedule was provided.

Engine Testing Supports the Development Program

Firefly reported that Miranda has completed more than 175 hot-fire tests totaling over 4,200 seconds.

Testing included operation at 110% performance and a run lasting 20 seconds beyond the nominal 206-second flight duration. Miranda and Vira use technology scaled from Firefly’s Reaver and Lightning engines.

That testing history supports the propulsion program, but the supplied information does not establish that Miranda or Vira has completed an orbital flight.

Investor Takeaway: Significant Contract Value, With Delivery and Funding Details Still Important

For FLY investors, the agreement adds a substantial engine-supply and licensing commitment while preserving Firefly’s intellectual property ownership.

For ASTS investors, it establishes a propulsion supplier and a manufacturing pathway for the proposed heavy-lift rocket. It does not, by itself, demonstrate a completed launch vehicle or operational launch capability.

The central execution questions are engine delivery timing, manufacturing readiness and the resources needed to complete AST SpaceMobile’s rocket. The undisclosed payment mix and schedule also remain important when assessing the agreement’s financial impact on both companies.