Telesat reports results for the quarter and twelve months ended December 31, 2025

Executive Summary

• Telesat reported FY 2025 consolidated revenue of C$418 M (‑27% YoY) and a net loss of C$530 M, driven by lower satellite service rates, higher legal fees, debt‑refinancing costs, and increased non‑cash impairment charges.
• Adjusted EBITDA fell 45% to C$213 M for the year; GEO segment adjusted EBITDA declined 36% to C$284 M, while LEO segment capital expenditures were largely funded by drawdowns on a $2.5 B Lightspeed financing facility (C$1.85 B remaining).
• The company announced several material strategic moves: addition of Mil‑Ka capacity to the Lightspeed constellation, a U.S. Department of War SHIELD IDIQ contract (US$151 B program), an MoU with Hanwha Systems, and a partnership with the Government of Canada/MDA on a MILSATCOM architecture.

Key Details

• Financial Performance – Full Year 2025
• Revenue: C$418 M vs. C$571 M in 2024 (‑27%).
• Operating expenses: C$212 M (+2% YoY).
• Adjusted EBITDA: C$213 M (‑45% YoY).
• Net loss: C$530 M vs. C$302 M prior year.
• GEO segment revenue down C$141 M; adjusted EBITDA down 36% to C$284 M.

• LEO segment capital & operating expenditures: C$777 M, funded primarily by drawdowns of C$690 M on the Lightspeed financing facility (C$1.85 B remaining).

• Quarterly Performance – Q4 2025

• Revenue: C$94 M vs. C$128 M in Q4‑24 (‑26%).
• Operating expenses: C$50 M (‑14% YoY).
• Adjusted EBITDA: C$40 M (‑46% YoY).

• Net loss: C$433 M vs. C$447 M prior year; improvement driven by foreign‑exchange gain.

• Backlog & Utilization

• GEO backlog ≈ C$800 M; LEO backlog ≈ C$1.0 B as of 31 Dec 2025.

• GEO satellite utilization: 59% at year‑end.

• Capital Expenditure

• Total FY 2025 capex: C$708 M (below internal expectations).

• Lightspeed related spend ≈ C$770 M (incl. design, software, terminals, ground stations).

• Financing Facility

• $2.5 B Lightspeed financing facility; $1.85 B undrawn as of year‑end.

• Strategic & Contractual Updates

• Added Military Ka‑band (Mil‑Ka) capacity to the initial 156 Lightspeed satellites under development with MDA – no impact on launch schedule.
• Awarded contract under U.S. Department of War’s US$151 B SHIELD IDIQ program (Golden Dome initiative).
• MoU with Hanwha Systems Co. Ltd. for sovereign satellite connectivity solutions and user terminals compatible with Lightspeed.

• Strategic partnership with Government of Canada & MDA Space to develop a MILSATCOM architecture for the Enhanced Satellite Communications Project – Polar (ESCP‑P).

• Debt Refinancing

• Ongoing discussions with lenders to refinance US$2.1 B Telesat Canada debt maturing Dec 2026–Oct 2027; advisors engaged.

• 2026 Outlook (Forward‑Looking)

• GEO revenue projected $300‑$320 M; GEO Adjusted EBITDA $210‑$230 M (excluding non‑recurring costs).

• Total Lightspeed spending expected $1.0‑$1.2 B for 2026.

• Conference Call – Scheduled for March 17 2026, 10:30 a.m. EDT; dial‑in details provided.

Notable Quotes

“Telesat made strong progress on multiple fronts in 2025… We’re seeing strong interest in Telesat Lightspeed from customers across our target market segments…” – Dan Goldberg, President & CEO
“We remain focused on refinancing the Telesat Canada debt that begins to mature late this year.” – Dan Goldberg

All forward‑looking statements are subject to risks and uncertainties detailed in the release.