stock

Investing.com -- Shares of Spire (NYSE: SR ) Global (NYSE: SPIR ) climbed 7.5% as the company was awarded a Can$72 million contract by the Canadian Space Agency to develop a satellite constellation for monitoring wildfires. This move reflects investor optimism following the announcement that Spire Global Canada, a subsidiary of Spire Global, Inc., will partner with OroraTech to create a system aimed at detecting wildfires, potentially saving lives, land, and property.

The contract involves designing and developing satellites equipped with payloads from OroraTech, a leader in space-based thermal intelligence. These payloads have previously provided data during Canadian wildfire emergencies and will now contribute to a more comprehensive wildfire detection and management system.

Spire's CEO, Theresa Condor, emphasized the significance of satellite capabilities in wildfire detection for public safety, environmental health, and economic stability. The company's commitment to expanding its Canadian office in Cambridge, Ontario, will enable domestic manufacturing of the WildFireSat mission and future projects.

Martin Langer, CEO & CTO of OroraTech, highlighted the partnership's dedication to supporting the Government of Canada with advanced infrared camera technology and data processing architecture. The collaboration with the Alexis Nakota Sioux Nation’s Wakâ Mne – Science and Culture Initiative aims to involve Indigenous businesses in the WildFireSat mission, promoting direct economic benefits and employment opportunities.

The WildFireSat mission, a joint initiative by several Canadian agencies, is designed to fill a crucial gap in current satellite coverage by focusing on the late afternoon period when wildfires are most intense. The constellation is scheduled for launch in 2029 and will be operated by the Canadian Space Agency (CSA) for at least five years.

Stifel analyst Erik Rasmussen commented on the significance of the contract, "We view this as a meaningful win for Spire not only given the size of the award, but because it was a competitive procurement process, demonstrating its proven ability and track record with wildfire monitoring. We see the potential opportunity for Spire to expand towards the next phase (not awarded yet) that requires the build, test, launch and commissioning of the satellites (decision likely early to mid-2026). Maintain Buy as fundamentals and bookings remain strong." This statement underlines the potential for Spire's continued growth and the strength of its position in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.