Virgin Galactic Completes New Spaceship Manufacturing Facility in Arizona
Virgin Galactic (NYSE: SPCE) announced the completion of its new manufacturing facility in Phoenix, Arizona. The facility, designed for the assembly of next-generation Delta spaceships, received its certificate of occupancy and is set to begin operations in Q1 2025. The initial team is currently preparing the facility to receive tooling by Q4 2024, followed by major subassemblies like the wing and fuselage in 2025. Ground testing in Phoenix will precede the transportation of completed ships to Spaceport America, New Mexico for flight tests. Commercial operations are expected to start in 2026. The multiuse facility, equipped with two hangars and supported by digital twin technology, aims to enhance efficiency and reliability. The Delta spaceships will accommodate up to six private passengers and are projected to conduct up to eight missions a month.
- Completion of new manufacturing facility in Phoenix, Arizona.
- Facility received its certificate of occupancy.
- Assembly operations expected to commence in Q1 2025.
- Ground testing facility opened in Southern California in May 2024.
- Delta spaceships projected to fly up to eight missions per month.
- Commercial operations expected to begin in 2026.
- New facility includes two hangars for maximum flexibility and efficiency.
- Facility supported by digital twin technology for real-time collaboration.
- Major subassemblies like the wing and fuselage will not arrive until 2025.
- Commercial operations delayed until 2026.
Insights
Virgin Galactic's new manufacturing facility in Phoenix is poised to significantly enhance its production capabilities for its next-generation Delta spaceships. This dedicated final assembly plant represents an essential step towards scaling the company's operations and improving profitability.
From a short-term perspective, having the facility ready by Q1 2025 indicates that the company is on track with its timeline. However, investors should monitor potential delays in receiving and installing tooling, which are important for the start of spaceship assembly.
In the long-term, the ability to build and test space vehicles efficiently will be integral to Virgin Galactic’s business model. The anticipated commercial operations starting in 2026, with each Delta spaceship capable of eight missions per month, could substantially increase revenue.
Virgin Galactic’s use of digital twin technology to support this process highlights their commitment to innovation and operational efficiency, which may inspire confidence among stakeholders about their technological edge in the competitive aerospace industry.
However, immense capital expenditure and the inherent risks related to space travel and regulatory compliance should not be overlooked.
While the completion of the Phoenix facility is a noteworthy milestone, it also signals significant capital expenditure and ongoing operational costs. Investors should consider the substantial financial commitment this entails and weigh it against the projected revenue from the Delta spaceships' commercial operations.
The timeline leading up to commercial flights in 2026 means that while the company might not see immediate revenue growth, it could potentially see enhanced market positioning and long-term profitability.
Virgin Galactic's stock performance will likely be influenced by the company's ability to meet its milestones and efficiently manage its cash flow during this expansion phase. The success in scaling from prototype to commercial viability will be pivotal for stakeholders looking at sustainable growth.
Investors should keep an eye on how effectively the company can manage these investments without straining its balance sheet, especially in an environment where interest rates and borrowing costs are subject to change.
Purpose-Built Final Assembly Facility for Delta Spaceships Receives Certificate of Occupancy
Spaceship Assembly Expected to Begin in Q1 2025
An initial team of Virgin Galactic technical operations and manufacturing personnel has begun preparing the facility to receive and install tooling, expected to arrive in Q4 2024. The facility will then begin to receive major subassemblies, including the wing, the fuselage, and the feathering system next year, as the team scales to build the first two ships of the Delta fleet. Once ground testing in
The multiuse facility includes two hangars equipped with multiple bays, designed for maximum flexibility in building and testing space vehicles. Work at the facility will be supported by the Company’s digital twin technology, which enables seamless integration between Virgin Galactic and suppliers through real-time collaboration, promoting strong governance and increased efficiency and reliability.
“The completion of our new manufacturing facility is an important milestone in the development of our fleet of next-generation spaceships, the key to our scale and profitability,” said Virgin Galactic CEO Michael Colglazier. “Tooling will begin arriving in a matter of months to support spaceship final assembly, which we expect to commence in Q1 2025.”
In May 2024, Virgin Galactic opened a ground testing facility in
Virgin Galactic’s Delta spaceships will seat up to six private passengers, and each is expected to be capable of flying up to eight missions per month, dramatically increasing access to space.
About Virgin Galactic
Virgin Galactic is an aerospace and space travel company, pioneering human spaceflight for private individuals and researchers with its advanced air and space vehicles. Scale and profitability are driven by next generation vehicles capable of bringing humans to space at an unprecedented frequency with an industry-leading cost structure. You can find more information at https://www.virgingalactic.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding the development of our Delta Class spaceships and proposed timeline for testing and commercial service using such spaceships, the timing of the delivery of parts and assembly of the Delta Class spaceships, the scaling of our team to develop the Delta Class spaceships, the use of digital twin technology to enable integration between us and suppliers and the estimated number of monthly flights of the Delta Class spaceships are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to, any delay in future commercial flights of our spaceflight fleet, our ability to successfully develop and test our Delta fleet and the time and costs associated with doing so, the safety of our spaceflight systems, our expected capital requirements and the availability of additional financing, and the other, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.virgingalactic.com, which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
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For media inquiries:
Aleanna Crane – Vice President, Communications
news@virgingalactic.com
575.800.4422
For investor inquiries:
Eric Cerny – Vice President, Investor Relations
vg-ir@virgingalactic.com
949.774.7637
Source: Virgin Galactic Holdings, Inc.
FAQ
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