Terran Orbital stock surges after winning $2.4 billion contract to build satellites for Rivada

Terran Orbital shares surged in early trading on Wednesday, after the company announced a $2.4 billion contract to build communications satellites for Rivada Space Networks.

The spacecraft builder will design, manufacture and deploy 288 satellites for Rivada out of Terran’s Tyvak subsidiary based in Irvine, California. It will also build 12 spare satellites, for a total contract of 300 satellites, and develop portions of the ground support.

Rivada aims to begin launching the constellation as early as 2025. The company wants to build an interconnected global satellite network, with service to telecommunications, enterprise and government markets.

“We are ecstatic to work alongside Rivada and look forward to building out their LEO constellation,” Terran cofounder, chairman and CEO Marc Bell said in a statement.

Terran stock jumped over 70% in premarket trading from its previous close of $1.71 a share. The stock has slid steadily since its debut just over a year ago, when it finished its first day of trading at $11.80 a share.