- Net income increased 54% year-over-year to $30.4 million.
- Operational EBITDA rose 6% to $122.1 million.
- Iridium plans a quarterly dividend increase to $0.15 per share starting Q3 2025.
Iridium Communications (IRDM, Financial) announced robust financial results for the first quarter of 2025, reporting a net income of $30.4 million, which marks a significant 54% increase compared to $19.7 million in the same period last year. The company's earnings per diluted share increased to $0.27 from $0.16 in Q1 2024.
Total revenue for the quarter rose 5% to $214.9 million, driven by a 4% growth in service revenue, which reached $154.3 million. Operational EBITDA also saw an uptick, growing 6% to $122.1 million. The subscriber base expanded, with total billable subscribers increasing by 5% year-over-year to 2.44 million, largely fueled by commercial Internet of Things (IoT) growth.
Key revenue segments showed strong performance, particularly in the commercial IoT division, which achieved an 11% increase in data revenue to $43.8 million. Engineering and support revenue also surged by 23%, totaling $37.5 million, which helped mitigate a 7% decline in equipment revenue.
Iridium has shown a commitment to returning capital to shareholders, having repurchased 2.4 million shares for $70 million in the first quarter. Additionally, the company announced plans to increase its quarterly dividend by 5.5% to $0.15 per share starting in Q3 2025.
The company reiterated its 2025 outlook, forecasting service revenue growth between 5% and 7% and Operational EBITDA in the range of $490-500 million. However, potential margin pressures due to new tariffs and US trade policies could influence equipment costs.
