Elon Musk–led SpaceX reportedly generated approximately $8 billion in profit on revenues ranging from $15 billion to $16 billion last year, offering fresh insight into the company's financial standing as the rocket manufacturer prepares for what could become the world's largest initial public offering.
The figures, which had not previously been made public, were reported by Reuters on Friday, citing sources familiar with SpaceX's finances.
The company did not immediately respond to Benzinga‘s request for comment.
Banks Eye $50 Billion Raise At $1.5 Trillion Valuation
According to Reuters, the figures have led some banks to estimate that the company could raise more than $50 billion at a valuation above $1.5 trillion. SpaceX is reportedly planning to launch the most significant IPO in the world, close to Musk’s 55th birthday on June 28.
The disclosed figures, which represent earnings before interest, taxes, depreciation, and amortization, a crucial measure of operating performance, shed light on SpaceX's robust financial performance, a significant factor in its anticipated IPO.
According to previous reports, SpaceX had initiated a secondary share sale targeting an $800 billion valuation, which Elon Musk later denied.
Starlink Drives Majority Revenue
SpaceX's main source of revenue is Elon Musk's satellite internet service, Starlink, which makes up an estimated 50% to 80% of the company's total revenue. Since 2019, SpaceX has launched about 9,500 Starlink satellites, making it the world's largest satellite operator with more than 9 million broadband users.
Last year, SpaceX also purchased $19 billion in wireless spectrum rights from EchoStar Corp. (NASDAQ:SATS) to expand its direct-to-device connectivity
Government contracts for Starlink and the military-grade Starshield network provide additional revenue for the rocket firm.
Musk Companies Explore Merger Ahead Of IPO
Meanwhile, SpaceX is also reportedly in talks with Musk's artificial intelligence company, xAI, about a potential merger ahead of an IPO.
This follows speculation regarding SpaceX's potential consolidation with Tesla Inc. (NASDAQ:TSLA), though no official discussions have been confirmed.
Photo: Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
