Can Globalstar's Bet on HIBLEO-XL Boost Its Satellite Market Share?

Globalstar, Inc. (GSAT) recently outlined its expansion strategy with the intention of bringing its HIBLEO-XL-1 satellite system into use. This initiative is likely to advance its efforts in delivering next-generation connectivity for industries, consumers, and businesses. As management anticipates the global space economy to hit $1.8 trillion by 2035, GSAT aims to strengthen its role in the rapidly evolving satellite communication market.

Over the past two decades, Globalstar has invested billions in satellites, driving LEO innovations and providing vital connectivity for industries like maritime, aviation, defense, and energy. It is currently upgrading its network infrastructure to improve services and drive future growth. GSAT has started its global ground upgrade for the new Extended MSS Network (C-3 system).

As part of its expansion, the company is building a new gateway at its ground station in OTE S.A.’s teleport in Nemea, Greece. Last month, it announced the construction to expand its Singapore ground station. The facility, hosted by Singtel since 2008, will soon boast two additional 6-meter tracking antennas designed to support Globalstar’s third-generation C-3 system.

In November 2024, it made a significant $1.5 billion investment in its third-generation satellite constellation (C-3), including 48 new satellites to expand coverage, approximately 90 new ground station antennas deployed worldwide, and higher-power downlink capabilities designed to dramatically improve user experience, ensuring faster and more reliable GSAT services. Importantly, the C-3 satellites will operate over the same licensed Big LEO bands, altitudes, and inclinations as Globalstar’s current system, ensuring continuity and compatibility. To support its ground network expansion, GSAT has signed a launch agreement with SpaceX for a Falcon 9 mission to deploy nine replacement satellites built by MDA Space. The first launch is planned for 2025, with a second in 2026, strengthening its second-generation constellation and ensuring uninterrupted service.

While C-3 strengthens Globalstar’s current foundation, the HIBLEO-XL-1 filing signals a move toward next-generation MSS capabilities. Filed through France, HIBLEO-XL-1 expands its potential by adding more satellites, new orbital shells, and a broader frequency spectrum, surpassing its existing L, S, and C-band frequencies to include additional MSS bands for mobile uplink and downlink, as well as feeder-link spectrum enhancements.

How Satellite Rivals Stack Up Against GSAT in the Space Race

Englewood, CO-based EchoStar (SATS) is a global provider of technology and connectivity solutions. With brands like Boost Mobile, Sling TV, DISH TV, Hughes, HughesNet, HughesON and JUPITER, the company offers a broad spectrum of consumer, enterprise, operator and government solutions.

Recently, it inked a definitive deal to offload its AWS-4 and H-block spectrum to SpaceX for $17 billion in cash and stock. SpaceX will also cover $2 billion in EchoStar debt interest and partner with EchoStar to provide Boost Mobile users access to Starlink Direct to Cell via 5G. However, revenues fell 5.8% to $3.7 billion in the last reported quarter, caused by subscriber losses in Pay-TV and Broadband, partly offset by higher Wireless ARPU.

McLean, VA-based Iridium Communications (IRDM) is a satellite communications company that offers dedicated commercial global voice and data communications services to both businesses and governments in the United States as well as globally. Recently, IRDM partnered with Deutsche Telekom to deliver global connectivity through Iridium’s upcoming NTN Direct service. The initiative focuses on integrating Iridium’s NTN Direct service into Deutsche Telekom’s terrestrial global IoT infrastructure. Iridium NTN Direct is built to complement terrestrial networks such as Deutsche Telekom’s, delivering seamless worldwide coverage and extending the reach of their existing infrastructure.

Iridium plans to build its next-generation network in the 2030s, delivering standard-based 5G/6G services directly to consumer devices for enhanced connectivity beyond cell towers. However, low barriers to entry, intense competition in the satellite space and a leveraged balance sheet are its woes.

GSAT’s Price Performance, Valuation and Estimates

GSAT’s shares have gained 79.8% in the past year compared with the Zacks Satellite and Communication industry's growth of 119.7%.

In terms of Price/Sales, GSAT stock is trading at a premium, with a forward 12-month price/sales of 13.5X compared with the industry’s 1.29X.

GSAT’s estimates are on an upward trajectory at present. The consensus mark for 2025 earnings has been revised up 77% to a loss of 8 cents per share over the past 60 days, and the same for 2026 earnings has moved north 200% to 1 cent per share.

At present, GSAT sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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