SES (SESGL) Q1 2025 earnings summary

Executive summary

• Q1 2025 began with stable revenue and adjusted EBITDA, reaffirming the full-year outlook and reflecting positive operational and financial results from the evolved strategy focused on managed multi-orbit solutions and operational efficiency.

• Commercial momentum continued with €360 million in new contracts and a growth backlog of €4.5 billion, driven by government, mobility, and media segments.

• The Intelsat acquisition is progressing as planned, expected to close in H2 2025, with integration planning, synergy targets, and financing fully secured.

Financial highlights

• Q1 2025 revenue was €509 million, down 0.5% year-over-year, with Networks segment up 8.4% and Media down 10.6%.

• Adjusted EBITDA was €280 million, down 0.9% year-over-year, with a stable 55% margin; OpEx (ex COGS) reduced by 6%.

• Adjusted net profit was €42 million, impacted by higher depreciation, amortization, and interest costs.

• Net leverage improved to 1.2x, with €3.1 billion in cash and cash equivalents.

• Adjusted free cash flow for Q1 was negative €51 million due to front-loaded CapEx.

Outlook and guidance

• Full-year 2025 revenue and adjusted EBITDA are expected to remain stable year-over-year, offsetting media declines with network growth.

• CapEx guidance for 2025 is €425–475 million; average annual CapEx of €325 million for 2026–2029, excluding IRIS².

• IRIS² CapEx to ramp from 2027, with most spend back-loaded and up to €1.8 billion subject to project validation.

• Combined company (post-Intelsat) expected to generate over €1 billion in free cash flow by 2027/2028.