Can AST SpaceMobile's HALO Contract Strengthen Its Defense Footprint?

AST SpaceMobile, Inc. ASTS has secured a prime contract worth about $30 million from the United States Space Development Agency under the Hybrid Acquisition for Proliferated Low-Earth Orbit (HALO) Europa Track 2 Commercial Solutions program. This contract enables the company to quickly deploy its Low Earth Orbit (LEO) dual-use technology and BlueBird satellites to provide fast, scalable connectivity for government defense needs.

The Europa Track 2 program is designed to deliver immediately deployable, operationally relevant tactical communications. AST SpaceMobile will use its dual-use BlueBird constellation to provide resilient, low-latency, direct-to-device satellite communications between government end-user devices. 

The company's space-based cellular broadband architecture employs a software-defined “bent-pipe” structure that enables high-bandwidth data transport directly from LEO, offering a more flexible alternative to traditional proprietary military satellite systems. Planned on-orbit tests will demonstrate compatibility with existing military radios and show how commercial satellites can quickly be adapted for defense missions.

This agreement strengthens AST SpaceMobile’s position as a defense partner and supports the Department of Defense's goal of building more resilient space networks, such as the Proliferated Warfighter Space Architecture. The company is also involved in other government initiatives, including the SHIELD program, which further advances its direct-to-device technology and broadens its opportunities in the defense communications market.

How Are Other Competitors Performing in the Defense Sector?

AST SpaceMobile faces competition from Globalstar, Inc. GSAT and Viasat, Inc. VSAT. Globalstar supports defense and government users with secure satellite communications and asset tracking services while expanding its LEO capabilities and spectrum partnerships to improve military connectivity. The company also signed a research agreement with the U.S. Army to test edge-computing for tactical situational awareness.

Viasat provides secure satellite communications, networking and cybersecurity solutions that support military aircraft, ships and ground forces. It is currently expanding its role through advanced satcom upgrades and partnerships. The company was selected by the United States Space Force for Phase 2 of the Enterprise Space Terminal program to develop an optical laser communications terminal for military space links.

ASTS’ Price Performance, Valuation and Estimates

AST SpaceMobile shares have skyrocketed 220.6% over the past year compared with the industry’’s growth of 48.8%.

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From a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 111.44, well above the industry average of 4.84.

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The Zacks Consensus Estimate for AST SpaceMobile’s bottom line for 2025 has declined 0.9% to a loss of $1.07 per share, while the estimate for 2026 has declined 21.6% to a loss of 90 cents over the past 60 days.

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AST SpaceMobile currently has a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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