York Space Systems ($YSS) issued shares on the NYSE yesterday in an IPO that netted the satellite manufacturer $629M. The shares began trading at $38, giving York an initial valuation of $4.75B.
The IPO offered a prime opportunity for retail investors looking to ride the wave of US defense spending that’s been buoyed by the Trump administration’s promises of Golden Dome.
Workin’ for the man: In York’s IPO prospectus, the company revealed that the vast majority of its revenue has so far come from government customers. In the first nine months of 2025, for instance, government customers drove $270M in York revenue, compared to just $11M from the commercial sector.
In a conversation with reporters following yesterday’s IPO, CEO Dirk Wallinger laid out the company’s plan for the new capital, which focuses heavily on winning more government contracts.
“What our country needs right now is large proliferation at scale, at affordable price,” Wallinger said. “Defense budgets are going to go up, so defense companies are going to do well. In any case, we’d like to think that we would do well because we win on price, delivery, and capability”
Spend that money: York plans to use the new capital to increase its production capacity, and start building a larger inventory of its satellite platforms to quickly capitalize on new opportunities. The company is also open to M&A opportunities if doing so can help to further secure its supply chain.
Wallinger told reporters that York can produce about 300 vehicles per year, but the long-term vision is to have annual output closer to four figures. The strategy is to hold inventories of satellite platforms, so that it can offer customers more immediate access to space
The aim is to get production down from around two years to seven months, a process that the company already proved was possible during the SDA’s Dragoon mission last year, according to Wallinger. If all York has to do is integrate payloads, it can move a lot faster.
“That’s kind of the focus of Golden Dome…we need this fielded by 2028 so these funds will help us inventory and really shrink that schedule,” Wallinger said.
Competitive attitude: With revenue concentration weighted heavily on the government side, the success of York’s stock will likely depend on whether it can continue to win contracts. York says it has an 83% win rate for PWSA contracts, and has been allocated a slot on every tranche of the transport layer thus far.
York claims that it can build sats two times cheaper than competitors, and with inventories lying in waiting, it can continue to beat out the competition on rapid delivery. The risks for PWSA, however, may be out of York’s control, as the DoD is reportedly considering doing away with the PWSA transport layer in favor of a Starlink alternative.
But PWSA isn’t the only game in town. York expects more traditional government services, like PNT and secure comms, to shift over to commercial acquisition models in the years ahead. Demonstrating success now will help York win more contracts as they arise.
“The government seems to want to go with proven providers who deliver in orbit,” Wallinger said. “We’re operating multiple constellations now, so we think we’re in a good position and have a right to win no matter what the contract is.”
