A landmark supply agreement with AST SpaceMobile (NASDAQ: ASTS) is set to dramatically expand Firefly Aerospace’s (NASDAQ: FLY) manufacturing capacity, infrastructure, and workforce in Texas.
The three-year contract, valued at more than $1.3 billion, calls for Firefly to deliver 36 rocket engines and license its engine intellectual property to AST SpaceMobile for use in a planned heavy-lift rocket program.
Specifically, Firefly will supply 27 Miranda engines and nine vacuum-variant Vira engines to power AST SpaceMobile’s first three rockets, while simultaneously granting AST the right to manufacture those engines independently.
Capital flowing from the agreement will fund expanded hiring, procurement of long-lead materials, equipment purchases, and the construction of multiple new test bays at Firefly’s Briggs, Texas, facility.
Firefly described the deal as a catalyst that will accelerate production of its existing launch vehicles and push forward a broader technology roadmap it has been developing.
The Miranda engine’s track record lends credibility to the arrangement, having logged more than 175 hot-fire tests totaling over 4,200 seconds of operation before this contract was signed.
In one notable demonstration, the 230,000-pound-thrust engine ran at 110% of its rated performance and burned for 20 seconds past its nominal 206-second flight duration, underscoring its reliability margins.
Both the Miranda and the Vira incorporate technologies proven in flight and scaled up from Firefly’s earlier Reaver and Lightning engines, giving AST SpaceMobile a foundation built on operational heritage rather than unproven designs.
Under the financial terms, AST SpaceMobile will pay Firefly through a combination of cash and Class A common stock, with the equity portion subject to various lock-up periods, while Firefly retains full ownership of the underlying engine intellectual property.
Markets responded sharply on Friday, with Firefly shares jumping 13.15% and AST SpaceMobile gaining 1.82%, as investors registered the strategic value of the deal for both Texas-based companies.
The two firms described their business portfolios as complementary, with Firefly continuing to serve government and commercial launch customers independently of its new supply relationship with AST.
Firefly is scheduled to address the agreement in detail during its third-quarter 2026 earnings call, set for 5 p.m. ET on Tuesday, November 10, where investors will likely press for production timelines and delivery milestones.
