Iridium Communications Declares $0.15 Quarterly Dividend, Maintains Annual Increase Streak
Iridium Communications Inc. (NASDAQ: IRDM), a provider of mobile voice and data communications via satellite, paid its first quarter dividend of $0.15 per share on March 31, 2026. The company has raised its dividend every year since introducing the payment in 2023.
Iridium Communications Inc. (NASDAQ: IRDM), a provider of mobile voice and data communications via satellite, paid its first quarter dividend of $0.15 per share on March 31, 2026, distributing $16.5 million to stockholders. The company has increased its dividend per share each year since initiating the program in 2023. Read more dividend announcements.
The quarterly cash dividend reflects Iridium's continued commitment to returning capital to shareholders while managing a net debt position of $1.7 billion as of the end of the first quarter. The company ended the period with $111.6 million in cash and cash equivalents against gross debt of $1.8 billion.
| Dividend Details | Information |
|---|---|
| Amount | $0.15 per share |
| Frequency | Quarterly |
| Payment Date | March 31, 2026 |
| Total Distribution | $16.5 million |
First Quarter Financial Position
Iridium reported capital expenditures of $30.0 million for the first quarter, including $1.4 million in capitalized interest. The company's net leverage stood at 3.4 times trailing twelve months OEBITDA at quarter-end.
The company's U.S. government subscriber base totaled 121,000 at the end of the first quarter, unchanged from the prior quarter but down from 133,000 a year earlier. Government voice and data subscribers declined 20% year-over-year to 43,000, while government IoT data subscribers remained relatively flat and represented 64% of total government subscribers.
Revenue Performance
Equipment revenue declined 13% to $20.2 million in the first quarter compared to $23.1 million in the prior-year period. Engineering and support revenue increased 9% to $40.8 million from $37.5 million, driven by increased U.S. government activity.
Iridium maintained its full-year 2026 outlook, projecting total service revenue flat to up 2% compared to 2025's $634.0 million. The company expects OEBITDA of $480 million to $490 million for 2026, reflecting a $17 million impact from a change in executive compensation practices to pay annual incentives entirely in cash rather than a mix of equity and cash.
The company projects net leverage at or below 3.0 times OEBITDA by year-end 2026 and below 2.0 times by the end of the decade. Cash taxes are expected to remain below $10 million per year through 2027, with the longer-term cash tax rate moving closer to the statutory rate in 2029.