LAS VEGAS – Textron Aviation, a subsidiary of Textron Inc . (NYSE:), has become the first business aviation original equipment manufacturer (OEM) to offer Gogo (NASDAQ:)’s Galileo HDX as a factory-installed option. The advanced connectivity solution will be available for the Cessna Citation Longitude, Citation Latitude, and Citation Ascend business jets, enhancing inflight Wi-Fi capabilities for passengers.
The Gogo Galileo HDX system is based on the company’s successful AVANCE platform and features a fuselage-mounted HDX antenna optimized for business jets. The system is designed to provide a more affordable and efficient satellite connectivity solution, with easier installation and operation compared to other satellite systems currently on the market.
Sergio Aguirre, president and COO of Gogo, expressed pride in partnering with Textron Aviation to bring this technology to customers. He highlighted the benefits of the HDX antenna for small to super midsize aircraft, offering an exceptional inflight Wi-Fi experience.
Gogo Business Aviation (NASDAQ: GOGO) anticipates the commercial launch of Gogo Galileo HDX in the fourth quarter of 2024, with Textron Aviation already working on integrating the HDX antenna into the three mentioned Citation models.
Gogo is recognized as a leading provider of broadband connectivity services in the business aviation sector, with a suite of smart cabin systems for connectivity, entertainment, and voice solutions. As of June 30, 2024, Gogo reported 7,031 business aircraft equipped with its broadband ATG systems, including 4,215 with an AVANCE L5 or L3 system, and 4,247 aircraft with narrowband satellite connectivity.
Textron Aviation, known for its Beechcraft, Cessna, and Hawker brands, has a long-standing history in aviation, producing a wide range of aircraft for various purposes. The company’s global customer service network supports customers in over 170 countries.
This announcement is based on a press release statement and includes forward-looking statements that involve known and unknown risks, uncertainties, and other factors that may affect actual results. The information presented is not guaranteed to be accurate and should not be relied upon as such.
In other recent news, Gogo Inc . has ramped up production of its Gogo Galileo HDX inflight connectivity system due to high demand. The company has also made notable progress in its acquisition of Satcom Direct, a deal valued at $410 million, which is expected to generate $485 million in revenue by 2024. Analysts from Roth/MKM have maintained their buy rating on Gogo shares, signaling the deal’s positive impact on Gogo’s financials.
In addition to these developments, Gogo has secured contracts to complete 25 Supplemental Type Certificates, expanding its broadband connectivity to more business aircraft. On the financial front, Gogo’s second quarter 2024 results showed a slight 1% decrease in total revenue, amounting to $102.1 million, but a 4% increase in service revenue, reaching a record high of $81.9 million.
Lastly, Gogo has committed $52.5 million to its partnership with Eutelsat OneWeb, enhancing its service offerings. Despite a delay in the launch of Gogo 5G to the second quarter of 2025, Gogo Inc. has updated its 2024 financial guidance, anticipating revenue ranging from $400 million to $410 million. These are the recent developments for Gogo Inc.
InvestingPro Insights
As Gogo (NASDAQ: GOGO) partners with Textron Aviation to bring its Galileo HDX system to the market, investors may find value in examining the company’s financial health and market performance. According to InvestingPro data, Gogo’s market capitalization stands at $863.28 million, reflecting its position in the aviation connectivity sector.
Despite the positive news of the Textron partnership, an InvestingPro Tip indicates that Gogo’s net income is expected to drop this year. This projection could be influenced by factors such as the company’s investment in new technologies like the Galileo HDX system or broader industry challenges.
On the operational front, Gogo demonstrates strength with a gross profit margin of 67.02% for the last twelve months as of Q2 2024. This robust margin suggests efficient cost management in its core business operations, which could be crucial as the company rolls out new products like the Galileo HDX.
Another InvestingPro Tip highlights that Gogo’s price has fallen significantly over the last three months, with a three-month price total return of -27.12%. This decline might present an opportunity for investors who believe in the company’s long-term prospects, especially considering the potential impact of the new Textron Aviation partnership.
For those interested in a deeper analysis, InvestingPro offers additional tips and insights. In fact, there are 13 more InvestingPro Tips available for Gogo, providing a comprehensive view of the company’s financial situation and market position.
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