Second-quarter revenue rose 10% to $92.5 million, while gross margin improved to 24% from 11% a year earlier. However, higher operating expenses kept adjusted EBITDA at a $9.5 million loss. York cut its 2026 revenue guidance to $375 million–$405 million from a prior midpoint of $570 million, citing delays from the government's shift to IDIQ contracting and supply-chain issues that are deferring revenue into 2027.
The company ended June with $592 million in backlog and $684 million in liquidity, while recent Solestial and ALL.SPACE acquisitions broadened its space-solar and communications capabilities. York expects its subsidiaries to contribute 10%–15% of 2026 revenue. York Space Systems (NYSE:YSS) reported second-quarter revenue growth and improved margins while lowering its full-year revenue outlook, citing a shift in government procurement toward IDIQ contracts and supply-chain delays that are pushing some revenue into 2027.
Revenue for the second quarter of 2026 was $92.5 million, up 10% from the prior-year period. Chief Accounting Officer and interim CFO Brian Frantz said the increase was driven primarily by acquisitions completed during the second half of 2025 and first half of 2026, along with a new commercial contract announced earlier this year. Revenue from the company's major government programs was relatively flat year over year. → Lumentum Just Delivered the AI Growth Investors Wanted The company revised its 2026 revenue guidance to a range of $375 million to $405 million, compared with a prior midpoint of $570 million.
The new midpoint of $390 million is $180 million below the previous midpoint. CEO Dirk Wallinger said the U.S. government has shifted from issuing a rapid succession of larger requests for proposals toward an IDIQ, or indefinite-delivery, indefinite-quantity, acquisition model. While initial IDIQ awards may take longer, he said task orders can be issued more quickly once the contract vehicles are in place. → Ryman Checks Into a $1.38B Hospitality Upgrade Frantz said roughly 30% of the prior revenue-guidance midpoint had depended on new business.
York removed that anticipated new business from its outlook for the remainder of 2026 because of the changed award environment. He added that supply-chain issues are also delaying revenue into 2027, partly offset by revenue contributions from recent acquisitions. During the question-and-answer session, Frantz said the impact from supply-chain delays and the removal of expected new revenue were "about equal" in the guidance revision.
The company did not identify specific suppliers or satellite programs affected by the supply-chain issues. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal Wallinger said York has won eight contracts in 2026, with an 88% proposal win rate. He said the company expects the newer IDIQ awards to support growth in 2027 as follow-on task orders and larger operational programs advance. As of June 30, York's backlog was $592 million, down 8% sequentially from $642 million at the end of the first quarter but up 9% from the beginning of the year.
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