Virgin Galactic, the suborbital spaceflight company, plans to raise $300 million to accelerate the production of suborbital spaceplanes and a mothership aircraft, aiming to expand its commercial spaceflight operations.
During a Nov. 6 earnings call, executives stated that while the first two Delta-class spaceplanes are on schedule, they see an opportunity to expedite fleet expansion. “We have an exciting opportunity to capture economies of scale from our existing investments,” said Michael Colglazier, Virgin Galactic’s CEO.
Initially, Virgin Galactic intended to fund future vehicle development using revenue from its first two Delta-class spaceplanes, which will begin commercial flights in 2026. However, the company now aims to speed up development of two additional Delta-class vehicles and a second mothership, pushing their commercial service to 2028, two years ahead of the original timeline.
“The growth capital we plan to employ will allow Virgin Galactic to deliver a second mothership and two additional spaceships much earlier than if we were to fund these ships solely through organic growth,” Colglazier added.
The additional vehicles and mothership will lead to a fully utilized Spaceport America in New Mexico, doubling revenue and quadrupling earnings before interest, taxes, depreciation, and amortization (EBITDA). “From there, our first fully utilized spaceport becomes the economic engine that generates more than enough cash flow to expand to other spaceports around the globe,” said Doug Ahrens, Virgin Galactic’s CFO.
Virgin Galactic plans to begin design work on the second mothership in 2025, moving into production in 2026 and testing in 2027, with commercial service expected in 2028. The company will internally build the plane, leveraging its existing engineering and production workforce.
Colglazier highlighted the progress on the first Delta-class vehicles, with subcontractors Bell Textron and Qarbon Aerospace making significant contributions. Assembly is scheduled to begin in the first quarter of 2025 at the company's new facility near Phoenix, with rollout and ground tests planned for the second half of 2025.
Despite some design revisions required for specific components, Virgin Galactic maintains the overall program momentum and expects to deliver within the projected timelines. The company reported revenue of $402,000 in the third quarter and a net loss of $74.5 million. Virgin Galactic ended the quarter with $744 million in cash and equivalents.