Telesat Reports Results for the Quarter and Six Months Ended June 30, 2025

Executive Summary

• Telesat reported financial results for the three and six months ended June 30, 2025, showing significant declines in revenue and profitability compared to the prior year.
• Consolidated revenue for Q2 2025 was $106 million (down 30% YoY), driven by lower renewal rates for a major DTH customer, reduced services for specific clients, and lower LEO consulting revenues.
• The company reaffirmed its 2025 financial guidance, expecting full-year revenues between $405 million and $425 million and Adjusted EBITDA between $170 million and $190 million.

Key Details

• Q2 2025 Financial Performance (Three Months Ended June 30, 2025):
  • Revenue: $106 million, a decrease of 30% ($46 million) from $152.4 million in Q2 2024.
  • Operating Expenses: $51 million, a decrease of 10% ($6 million) from $56.3 million in Q2 2024.
  • Adjusted EBITDA: $59 million, a decrease of 43% ($45 million) from $103.3 million in Q2 2024.
  • Adjusted EBITDA Margin: 55.3%, compared to 67.8% in Q2 2024.
  • Net Income: $76 million, compared to $129 million in Q2 2024. The decrease was primarily due to a smaller gain on debt repurchase and lower revenue, partially offset by a foreign exchange gain.
• H1 2025 Financial Performance (Six Months Ended June 30, 2025):
  • Revenue: $223 million, a decrease of 27% ($82 million) from $304.6 million in H1 2024.
  • Operating Expenses: $104 million, essentially unchanged from $103.4 million in H1 2024.
  • Adjusted EBITDA: $126 million, a decrease of 41% ($88 million) from $214 million in H1 2024.
  • Adjusted EBITDA Margin: 56.6%, compared to 70.3% in H1 2024.
  • Net Income: $24 million, compared to $77 million in H1 2024. The decline was driven by lower revenues, a smaller gain on debt repurchase, and a loss related to the fair value of Telesat Lightspeed financing warrants.
• 2025 Financial Outlook:
  • Revenues: Expected between $405 million and $425 million.
  • Adjusted EBITDA: Expected between $170 million and $190 million on a consolidated basis. This includes LEO operating expenses of $110 million to $120 million.
  • Capital Expenditures: Expected between $900 million and $1,100 million, virtually all related to Telesat Lightspeed.
• Business Highlights & Backlog:
  • Commercial Agreements: Signed a multi-year agreement with Viasat Inc. in April for Telesat Lightspeed services, integrating the network into Viasat’s portfolio for aviation, maritime, enterprise, and defense markets.
  • Backlog: Contracted GEO backlog of approximately $900 million and contracted LEO backlog of approximately $1 billion as of June 30, 2025.
  • Fleet Utilization: 70% as of June 30, 2025 (up 3.5% from March 31, 2025). Note: Anik F3 was removed from capacity utilization calculations after reaching end-of-life fuel status in April 2025; without this removal, utilization would have been 62%.

Notable Quotes

• “I am pleased with our performance in the first half of this year. We’re making strong progress on the Telesat Lightspeed technical and commercial fronts, and continuing our disciplined execution in our GEO segment,” commented Dan Goldberg, Telesat’s President and CEO. “The Telesat Lightspeed backlog stands at over $1 billion, and we remain focused on adding to that as we pursue a wide range of opportunities across our target segments of enterprise, aviation, maritime and government. In our GEO business, the year is unfolding largely as we had expected, and we reiterate the 2025 guidance we shared at the outset of the year.”