Iridium Communications (IRDM) Deutsche Bank 32nd Annual Leveraged Finance Conference summary

Leadership transition and financial strategy

• New CFO, with a decade of experience, will assume the role in January, emphasizing continuity in financial policy and strategy.

• Transition has been planned for several years, with no major changes expected in financial approach.

• Focus remains on transparent financial policies and maintaining leverage targets.

Recent performance and outlook

• 2024 is described as a transition year due to non-recurring headwinds, including prior pricing actions and equipment revenue normalization.

• Satellite constellation life extended by five years, spreading revenue recognition and causing a temporary $7 million headwind in 2024.

• Expectation to return to normalized OEBITDA growth in 2025, targeting approximately $500 million.

• Service revenue growth for the year guided at 4–6%, with OEBITDA between $460–470 million and $300 million in free cash flow.

Strategic investments and acquisitions

• Completed acquisition of Satelles, a provider of positioning, navigation, and timing services, with integration progressing well.

• Satelles is expected to contribute $100 million to service revenue as part of a broader $1 billion plan.

• Satelles technology leverages existing network capacity, enabling scalable growth with minimal incremental cost.