Castellum, Inc. Announces the Award of a $103.3 million Contract to its GTMR Subsidiary

Rhea-AI Summary

Castellum (NYSE-American: CTM) has secured its largest contract to date through its GTMR subsidiary - a $103.3 million, five-and-a-half-year contract for Special Missions Management of On-Site Services supporting NAVAIR Program Office 290.

The contract, starting next month, encompasses multiple Intelligence, Surveillance, Reconnaissance, and Targeting (ISR&T) programs, including Maritime Patrol and Reconnaissance Force Family of Systems, P-8A Research and Development, and MQ-4C Triton Multiple Intelligence.

GTMR will provide comprehensive acquisition lifecycle support, including material solution analysis, technology development, engineering, manufacturing, production deployment, and operations support. The scope includes engineering analysis and recommendations for technical, logistics, training, and acquisition life-cycle support for ISR&T platforms and infrastructure.

Positive

• Largest contract win in company history ($103.3M)
• 5.5-year contract duration provides stable revenue stream
• Expansion of services in critical defense technology sector
• Immediate revenue impact with next month start date

Negative

• None.

Insights

Financial Analyst

Castellum's $103.3 million contract represents a transformative development for this $76 million market cap company. The contract value is 136% of Castellum's entire market capitalization, creating a significant revenue visibility runway over the next 5.5 years. At approximately $18.8 million annually, this single contract could substantially bolster Castellum's financial stability and growth trajectory.

This award addresses a critical aspect investors often seek in small defense contractors: establishing a substantial backlog relative to market value. The win strengthens Castellum's competitive moat within specialized defense technology domains and could potentially trigger a revaluation of the company's shares as the market processes the improved revenue visibility.

The contract's comprehensive scope spanning the entire acquisition lifecycle suggests high-value work rather than mere commodity services, which typically command stronger margins. The contract timing is particularly advantageous as it provides medium-term revenue certainty amid defense budget uncertainties. For investors, this represents a important derisking event for Castellum, potentially allowing the company to invest in capabilities expansion while maintaining financial discipline.

Defense Industry Specialist

This award positions Castellum strategically within the high-priority naval ISR&T domain covering critical platforms like the P-8A Poseidon and MQ-4C Triton. These systems represent cornerstone capabilities in maritime domain awareness and intelligence collection, underscoring the significant trust NAVAIR has placed in Castellum's technical capabilities.

Being designated as the prime contractor for Special Missions Management of On-Site Services demonstrates Castellum has crossed an important threshold in the defense contracting hierarchy. Such prime positions are typically highly coveted as they provide direct customer relationships, program visibility, and potential for follow-on work.

The contract's focus on electronic warfare and intelligence systems aligns perfectly with current defense priorities emphasizing information advantage and near-peer competition. The comprehensive scope covering material solution analysis through operations support indicates Castellum will gain invaluable insights into NAVAIR's technology roadmap and emerging requirements, positioning them advantageously for future competitions.

What's particularly notable is that smaller contractors like Castellum are increasingly winning prime positions traditionally dominated by defense giants, reflecting the Navy's desire to tap into more agile, specialized technology providers. This award potentially signals Castellum's emergence as a significant player in the naval technology segment.

VIENNA, Va., Feb. 28, 2025 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM) (“Castellum” or “CTM”), a cybersecurity, electronic warfare, and software engineering services company focused on the federal government, announces that its Global Technology and Management Resources, Inc. (“GTMR”) subsidiary has been awarded a $103.3 million, five and one-half year contract for Special Missions Management of On-Site Services (“MOSS”) in support of the Naval Air Systems Command (“NAVAIR”) Program Office 290 (“PMA-290”) Special Missions. The contract consists of multiple Intelligence, Surveillance, Reconnaissance, and Targeting (“ISR&T”) programs but not limited to, the Maritime Patrol and Reconnaissance Force Family of Systems, P-8A Research and Development, SM Platforms, Minotaur Family of Services, P-8A Increment 3, P-8A Foreign Military Sales, MQ-4C Triton Multiple Intelligence, Mobile Quick Look, ground & mission support stations, and future capabilities.

This award represents the largest contract win in Castellum’s history and is expected to start next month. We will provide all aspects of the acquisition life cycle, including material solution analysis, technology development, engineering and manufacturing development, production and deployment, and operations support. This support encompasses engineering analysis and recommendations for technical, logistics, training, and acquisition life-cycle support for the ISR&T platforms and infrastructure, as well as their accompanying Ground Support Stations and classified network(s) entry facilities. With our leading-edge technology services and solutions, we will support the program maturation and integration of electronic warfare and special missions capabilities.

“We are building a strong and enduring foundation and winning culture here at Castellum and this major win and new opportunity reinforce the positive and powerful momentum our CTM Team continues to determinedly drive. As an industry leading technology services and solutions company, our CTM team could not be more proud and excited for this special opportunity to support our NAVAIR PMA-290 Special Missions customer as their trusted ‘go to’ prime contractor We are privileged and honored to be an essential part of their team and to help achieve their crucial mission to ensure our nation’s warfighters are armed with the most technologically advanced capabilities in the world and assure their success. And once again, it’s our remarkable team of outstanding CTM professionals who bring world-class skills, talent, experience, and dedication in these key technological domains, that make a very real and positive difference with their vital contributions to our all-important national security needs. This win reflects our uncompromising commitment to our people, our mission customers and our shareholders in our unrelenting pursuit of growing Castellum better and stronger in every way, for the long term. It also reflects the applied effectiveness of our renewed and re-energized organic growth strategy that we agilely and timely adjust based upon market conditions and the constantly evolving needs and capabilities requirements of our mission customers. I could not be more confident and encouraged for our CTM team as we look ahead,” said Glen Ives, President and Chief Executive Officer of Castellum.

About Castellum, Inc.

Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government - https://castellumus.com/.

Cautionary Statement Concerning Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company’s expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as “estimate,” “project,” “believe,” “anticipate,” “shooting to,” “intend,” “plan,” “foresee,” “likely,” “will,” “would,” “appears,” “goal,” “target” or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations for revenue growth and new customer opportunities, improvements to cost structure, and profitability. Forward-looking statements include, but are not limited to, statements regarding the Company’s expectations for revenue growth and new customer opportunities including opportunities arising from its contracts with NAVAIR and other customers, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company’s control, that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, among others: the Company’s ability to compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company’s revenue due to a delay in the U.S. Congress approving a federal budget, operating under a prolonged continuing resolution, government shutdown, or breach of the debt ceiling, as well as the imposition by the U.S. government of sequestration in the absence of an approved budget; the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience. For a more detailed description of these and other risk factors, please refer to the Company’s Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) which can be viewed at www.sec.gov. All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company.

Contact:
Glen Ives
President and Chief Executive Officer
Phone: (703) 752-6157
info@castellumus.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0bfdbdc0-17de-4f32-a7b1-1494f3d330e5

FAQ

What is the value and duration of Castellum's (CTM) new NAVAIR contract?

The contract is valued at $103.3 million with a duration of five and a half years.

When will Castellum's (CTM) new NAVAIR contract begin?

The contract is expected to start in March 2025.

What services will Castellum (CTM) provide under the NAVAIR PMA-290 contract?

CTM will provide acquisition lifecycle support, including material analysis, technology development, engineering, manufacturing, and operations support for ISR&T platforms.

Which programs are included in Castellum's (CTM) NAVAIR contract scope?

The contract covers P-8A Research and Development, Maritime Patrol Systems, MQ-4C Triton Multiple Intelligence, and other ISR&T programs.