Momentus Inc ( MNTS ) shares are trading higher Tuesday after the company announced the U.S. Air Force Research Labs accepted one of its proposals.

What Happened: Momentus ( MNTS ) announced that its proposal to perform an in-space demonstration flight of a new, low-cost suite of multispectral sensors for Rendezvous and Proximity Operations was accepted by the U.S. Air Force Research Labs AFWERX organization.

AFWERX is the innovation arm of the U.S. Air Force under the Air Force Research Laboratory. Momentus ( MNTS ) submitted a proposal under the AFWERX Challenge in 2024 and was recently notified that its proposal for a Phase II Small Business Innovation Research project was chosen over its competitors.

“We’re thrilled to be selected to perform this in-space demonstration to support the U.S. Air Force with cutting-edge technology. We’re at a key juncture in the development of technology to enable new operations in space that are critical to America’s security and commercial operations in space,” said John Rood, CEO of Momentus ( MNTS ).

See Also: Trump Calls On Musk To Rescue ‘Stranded’ Astronauts, But NASA Picked SpaceX Last Year

Momentus ( MNTS ) noted that it expects to complete contract negotiations “shortly.” The company is targeting a flight demonstration in early 2026 to show the ability of low-cost RPO sensors to safely guide a space vehicle.

The rendezvous sensor demonstration will join other payloads on a mission that Momentus ( MNTS ) has contracted with SpaceX to join a Transporter rideshare launch in early 2026.

Momentus ( MNTS ) is a U.S. commercial space company that offers commercial satellite buses and in-space infrastructure services including in-space transportation, hosted payloads, and other in-orbit services.

MNTS Price Action: Momentus ( MNTS ) shares were up 2.15% at $5.70 at the time of publication Monday, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.