The National Reconnaissance Office (NRO) announced earlier this week that the "largest-ever commercial imagery contract effort" undertaken by the agency has concluded, awarding substantial contracts to satellite imaging companies Maxar Technologies (NYSE: MAXR), Planet Labs (NYSE: PL), and BlackSky Technology (NYSE: BKSY).
"The NRO has a long-standing strategy of 'buy what we can, build what we must'," said NRO Director Dr. Chris Scolese. "The diversity offered by our expanding architecture comprised of both commercial and NRO systems increases our resilience and enables an integrated approach to the threats facing our Nation."
While the agency's release doesn't mention specific numbers, a regulatory filing by Maxar revealed that its EOCL contract is valued at $3.24 billion. BlackSky's contract was valued at $1.02 billion.
As a member of the US Intelligence Community, the NRO is responsible for deploying and operating reconnaissance satellites and analyzing the data they gather to pass on to US leadership. While it's hard to attribute US intelligence accuracy in the invasion of Ukraine to any single agency, the vast array of highly detailed satellite images taken of the war-torn Eastern European republic undoubtedly have played a significant role in providing accurate predictions on Russian movements. For the extreme clarity and precision that modern spy satellites can provide to the NRO, one needs to look no further than Maxar's Twitter posts (NYSE: TWTR) showing the aftermath of a Ukrainian attack on a Russian landing ship in Berdyansk.
In general, the war in Ukraine has proven the versatility of commercially operated satellites for use by intelligence agencies and military forces. Despite suffering from jamming and tracking attempts from Russian troops, SpaceX's Starlink has proven extremely useful to Ukrainian forces by providing mobile, reliable internet.
In the past, the agency relied mainly on Maxar to operate its photo-taking and signal-intercepting satellites, with the Electro-Optical Commercial Layer (EOCL) program intended to diversify the NRO's portfolio of satellites and provide it with greater flexibility. In addition, the NRO would be able to share intelligence more efficiently. The agency noted, among other things, "user-friendly license agreements and built-in contract flexibility, maximizes shareability across a diverse customer base," those customers being US leaders and the leadership of allied countries.
News of a fat government contract has driven shares of Maxar, Planet Labs, and BlackSky up considerably over the last week. Maxar shares were up 25.5% for the week by 2 p.m. on Friday, while Planet Labs climbed 30.1%. BlackSky benefitted from a considerable 133.3% increase by Friday afternoon, thanks to the positive news.