ORANGE COUNTY, Calif. - Virgin Galactic Holdings, Inc. (NYSE: NYSE:SPCE), a pioneer in aerospace and space travel, has announced the completion of its new Phoenix, Arizona manufacturing facility, marking a significant step toward the commencement of assembly for its Delta-class spaceships. The company anticipates the start of assembly in the first quarter of 2025, with the facility now preparing to receive and install tooling by the fourth quarter of 2024.
The facility, equipped with two hangars and multiple bays, is designed for flexibility in the construction and testing of space vehicles. Virgin Galactic's digital twin technology will support operations, facilitating real-time collaboration with suppliers to enhance efficiency and reliability.
Virgin Galactic's CEO, Michael Colglazier, stated that the completion of the new manufacturing facility is crucial for the development of the fleet, which is central to the company's scale and profitability. The facility will soon begin to receive major spaceship subassemblies, such as wings, fuselages, and feathering systems, with the objective of building the first two ships of the Delta fleet.
Following the completion of ground testing in Phoenix, Virgin Galactic's mothership will transport the completed spaceships to Spaceport America in New Mexico for flight testing. Commercial operations are expected to begin in 2026. In May 2024, the company also opened a ground testing facility in Southern California for Delta subsystems.
The Delta spaceships are designed to seat up to six private passengers and are expected to be capable of conducting up to eight missions per month, significantly increasing access to space.
The information is based on a press release statement from Virgin Galactic Holdings, Inc.
InvestingPro Insights
As Virgin Galactic Holdings, Inc. (NYSE: SPCE) gears up for a new phase with its Phoenix manufacturing facility, investors are closely monitoring the company's financial metrics and market performance. Here are key insights from InvestingPro that shed light on the company's current standing:
InvestingPro Data shows that Virgin Galactic has a market capitalization of $144.8 million USD, which is reflective of investor sentiment and market value. Despite a significant revenue growth of 251.91% over the last twelve months as of Q1 2024, the company's financials reveal a gross profit margin of -767.52%, indicating that costs far exceed revenues. Additionally, the stock has experienced a considerable price drop, trading at 8.15% of its 52-week high, which may concern investors looking for stability.
Among the InvestingPro Tips, two are particularly relevant to the current state of the company. Firstly, the company holds more cash than debt on its balance sheet, which is a positive sign of liquidity and may provide some financial flexibility as it moves forward with its Delta-class spaceship assembly. Secondly, the stock's Price / Book multiple stands at 0.35, suggesting that the stock may be trading at a low valuation relative to its book value. This could present an opportunity for value investors, particularly when considering the company's ambitious growth plans.
For readers interested in a deeper analysis and additional insights, there are 20 more InvestingPro Tips available for Virgin Galactic. These tips can provide a more comprehensive understanding of the company's financial health and market position. To access these tips and benefit from the full range of insights, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro.
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