SpaceX's net profit in Q3 reached 4.4 billions dollars, far exceeding expectations.

SpaceX (SPCX.US) reported a third-quarter net profit of $4.4 billion, significantly surpassing the market expectation of $1.88 billion, with revenue growing 161% year-on-year, driving its share price up as much as 12.4% intraday on Wednesday. However, the company stated it will continue making substantial investments, sparking market concerns about a potential increase in future borrowing. The spread on SpaceX’s 6.6% coupon bonds maturing in 2046 widened by 9 basis points to 264 basis points; the five-year credit default swap (CDS) price at one point rose to 232.6 basis points, repeatedly hitting new highs this month. SpaceX CFO Brett Johnson said the company will focus investments on the artificial superintelligence division’s computing power as well as Starlink broadband and mobile businesses, and is in discussions with multiple debt capital sources for financing. The company issued $25 billion in bonds in June, and previous reports indicated SpaceX is negotiating $40 billion in financing to purchase Nvidia chips. Johnson stated the company plans to maintain an investment-grade credit rating.