BKSY's Growth Driven by Strong Government Contract Momentum

BlackSky Technology BKSY continues to attract attention in the space and defense technology sector, with one factor front and center: contract momentum with government clients. The company’s real-time geospatial intelligence services have positioned it to secure a string of agreements with U.S. defense agencies, providing the necessary visibility to its revenue outlook. For a company operating in a high-CAPEx, competitive field, recurring contracts are the strongest indicator of staying power.

In the past year, BlackSky reported revenue growth of 8% year over year to $102 million, fueled by multi-year agreements. A growing contract base indicates that government reliance on its real-time geospatial data analytics is not only steady but also expanding.

Parsons Corporation PSN, a much larger defense and space contractor with annual revenues above $6.7 billion, has long demonstrated the sector’s playbook: dependable government contracts produce predictable growth. In 2024, Parsons achieved 24% revenue growth, largely from defense solutions tied to cyber and space systems, underscoring how government budgets continue directing capital toward intelligence and infrastructure resilience. BlackSky’s emerging ability to post similar contract-driven trajectories, albeit on a smaller scale, increases its credibility as a growth candidate.

Planet Labs PL, by comparison, saw revenue growth of about 11% last year to $244.4 million, but it struggled with cash burn and lumpy contract renewals, a reminder of volatility in satellite imaging markets. Investors often weigh Planet’s commercial reach against its persistent negative free cash flow. BlackSky, in contrast, recently guided toward positive adjusted EBITDA by 2026, aided primarily by recurring government subscription revenues.

The broader market backdrop remains favorable. The geospatial imagery analytics market is expected to witness a CAGR of 9% through 2030, driven by defense modernization and real-time intelligence demand. BlackSky’s contract momentum aligns it toward this trend, while appearing less risky than Planet Labs and potentially on a Parsons-like trajectory of defensible growth.

BKSY stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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