AST SpaceMobile Awarded $30M Government Contract

The satellite communications company continues to expand its government work amid launch risks and Wall Street skepticism.

Feb. 25, 2026 at 9:37pm

Got story updates? Submit your updates here. ›

AST SpaceMobile, a satellite communications company, has been awarded a $30 million prime contract from the U.S. Space Development Agency (SDA) for the HALO Europa Program. This marks the first-ever prime contract for AST SpaceMobile USA, the company's defense subsidiary. The contract highlights AST SpaceMobile's ability to deliver rapid, direct-to-device tactical communications via its BlueBird satellite constellation. However, the company faces challenges in meeting its ambitious 2026 launch targets, and Wall Street analysts remain cautious, with a consensus 'Reduce' rating and an average 12-month price target implying over 35% downside.

Why it matters

This contract further establishes AST SpaceMobile as a growing government contractor, diversifying its revenue streams beyond its existing strategic partnerships with major telecom companies. However, the company's ability to execute on its launch plans remains a key concern, and Wall Street's bearish sentiment could weigh on the stock in the near term.

The details

The SDA contract is part of the Europa Track 2 Commercial Solutions program, which aims to bolster the military's transport layer of communications and data relay satellites. AST SpaceMobile plans to leverage its existing low Earth orbit dual-use satellite technology to support the government's defense efforts, delivering immediate connectivity with its BlueBird satellites and scaling quickly to advanced tactical use cases. The company previously announced that its next-generation Block 2 BlueBird satellite will be transported by Jeff Bezos-founded Blue Origin's New Glenn-3 heavy lift rocket, expected to launch 'no earlier than late February'.

  • On Feb. 23, 2026, AST SpaceMobile announced the $30 million SDA contract.
  • AST SpaceMobile plans to launch 45 to 60 BlueBird satellites into orbit by the end of 2026.

The players

AST SpaceMobile

A satellite communications company developing a space-based cellular broadband network designed to connect standard mobile phones and other devices directly to its low Earth orbit (LEO) satellites.

AST SpaceMobile USA

The wholly owned defense subsidiary of AST SpaceMobile.

U.S. Space Development Agency (SDA)

A U.S. government agency responsible for developing and fielding the military's next-generation space-based communications and data transport capabilities.

Blue Origin

A private space company founded by Jeff Bezos, which is expected to transport AST SpaceMobile's next-generation Block 2 BlueBird satellite into low Earth orbit.

Chris Ivory

CEO of AST SpaceMobile USA.

Got photos? Submit your photos here. ›

What they’re saying

“The selection for SDA's Europa Track 2 program validates AST SpaceMobile's ability to rapidly operationalize commercial space capabilities for national security. By leveraging our existing low Earth orbit dual-use satellite technology, we support the government's defense efforts, delivering immediate connectivity with our BlueBird satellites and scaling quickly to advanced tactical use cases.”

— Chris Ivory, CEO of AST SpaceMobile USA

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This contract win highlights AST SpaceMobile's growing role as a government contractor, but the company faces significant challenges in meeting its ambitious launch targets and continues to face skepticism from Wall Street analysts. The company's ability to execute on its plans and address concerns about launch risks will be crucial in determining its long-term success.