Iridium approves $500M stock buyback, total program reaches $1.5B

Written by Copernical Team Friday, 20 September 2024 11:43

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Los Angeles CA (SPX) Sep 20, 2024

Iridium Communications Inc. (Nasdaq: IRDM), a leader in global satellite communications, has announced that its Board of Directors has authorized an additional $500 million share repurchase program, extending through December 31, 2027. This new authorization is the fourth of its kind in four years, bringing the total share buyback program to $1.5 billion. The latest authorization is the largest

Iridium approves $500M stock buyback, total program reaches $1.5B
by Clarence Oxford
Los Angeles CA (SPX) Sep 20, 2024

Iridium Communications Inc. (Nasdaq: IRDM), a leader in global satellite communications, has announced that its Board of Directors has authorized an additional $500 million share repurchase program, extending through December 31, 2027. This new authorization is the fourth of its kind in four years, bringing the total share buyback program to $1.5 billion. The latest authorization is the largest to date and reflects Iridium's robust business performance.

The share repurchase program began in February 2021 with an initial $300 million authorization. It was followed by a second $300 million authorization in March 2022 and a third $400 million authorization in July 2023. As with previous repurchase efforts, the goal is to optimize returns for investors. Iridium's second quarter 2024 earnings release reaffirmed the company's target of keeping net leverage below 4.0 times by 2026 and reducing it to under 2.0 times operational EBITDA by the end of the decade, even with ongoing share buybacks.

"With the completion of the Iridium NEXT program, Iridium began generating meaningful free cash flow and committed to implementing shareholder-friendly activities," said Matt Desch, CEO of Iridium. "In the last few years, we have already returned over a billion dollars through share repurchases and dividends, and this authorization continues the trend, making us one of the most shareholder-friendly companies, not just in Space, but throughout the tech and telecom industries as well."

The timeframe for repurchases may be modified by the Board of Directors, and transactions will occur either in the open market or through privately negotiated agreements at prevailing market prices.