IRDM (Iridium Communications) EBIT: $224.9 Mil (TTM As of Mar. 2026)


IRDM Iridium Communications Inc IRDM
74 GF Score
Price $42.28
GF Value $36.43
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Iridium Communications EBIT?

Iridium Communications IRDM -4.26% 74 EBIT is $224.9 Mil as of Mar. 2026. GuruFocus rates IRDM with a GF Score™ of 74/100 and a GF Value™ of $36.43 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Iridium Communications's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $50.5 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $224.9 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Iridium Communications's annualized ROC % for the quarter that ended in Mar. 2026 was 6.15%. Iridium Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 9.86%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Iridium Communications's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.67%.


Iridium Communications  (NAS:IRDM) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Iridium Communications's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=202.852 * ( 1 - 28.33% )/( (2367.367 + 2358.296)/ 2 )
=145.3840284/2362.8315
=6.15 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2531.009 - 67.141 - ( 96.501 - max(0, 111.67 - 276.503+96.501))
=2367.367

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2532.289 - 62.349 - ( 111.644 - max(0, 108.444 - 309.137+111.644))
=2358.296

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Iridium Communications's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=202.076/( ( (1978.153 + max(71.734, 0)) + (1953.491 + max(97.016, 0)) )/ 2 )
=202.076/( ( 2049.887 + 2050.507 )/ 2 )
=202.076/2050.197
=9.86 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(93.772 + 73.764 + 12.466) - (67.141 + 41.127 + -1.4210854715202E-14)
=71.734

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(104.382 + 69.667 + 23.444) - (62.349 + 38.128 + 0)
=97.016

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Iridium Communications's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=224.881/6119.709
=3.67 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Iridium Communications EBIT Related Terms


Iridium Communications EBIT Historical Data

* Premium members only.

The historical data trend for Iridium Communications's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Iridium Communications EBIT Chart

Iridium Communications Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.02 75.60 85.64 200.92 233.07

Iridium Communications Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 58.70 49.39 70.46 54.52 50.52

IRDM vs LBRDA, TDS, AD: EBIT Comparison

For the Telecom Services subindustry, Iridium Communications's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Iridium Communications EV-to-EBIT vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Iridium Communications's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Iridium Communications's EV-to-EBIT falls into.


IRDM
74GF Score
Iridium Communications Inc IRDM
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Iridium Communications EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $224.9 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $224.9 Mil mean?
Iridium Communications (IRDM) has a EBIT of $224.9 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Iridium Communications.
Is Iridium Communications' EBIT too high?
Iridium Communications' current EBIT is $224.9 Mil. Overall, Iridium Communications has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' EBIT compare to LBRDA and TDS?
Iridium Communications' EBIT of $224.9 Mil can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Telecommunication Services company?
A good EBIT depends on the Telecommunication Services industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Iridium Communications. Iridium Communications's current EBIT is $224.9 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.43, compared to a current price of $42.28 — trading 16.1% above its estimated fair value. The current EBIT is $224.9 Mil. Iridium Communications' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Iridium Communications (IRDM), the current EBIT is $224.9 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Iridium Communications (IRDM) Overvalued in 2026?

Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued. The current stock price of $42.28 is trading 16.1% above its estimated GF Value™ of $36.43. GuruFocus considers Iridium Communications to be Modestly Overvalued.

Key valuation signals for IRDM:

  • EBIT: $224.9 Mil
  • GF Value™: $36.43 vs. price of $42.28 (16.1% above fair value)
  • GF Score™: 74/100 with 5 warning signs

No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Iridium Communications Business Description

Address 1750 Tysons Boulevard, Suite 1400, McLean, VA, USA, 22102
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
74GF Score

Get the complete analysis for IRDM

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$42.28
Price
$36.43
GF Value