SES (SESGL) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong revenue and EBITDA growth, driven by the full consolidation of Intelsat and robust performance in Networks, especially Mobility and Government segments.

• Strategic wins and renewals across over 130 countries, with significant contracts in media, government, aviation, and maritime sectors.

• The company is focused on four strategic pillars: financial strength, vertical customer solutions, innovation, and smart diversification, including the launch of the next-gen meoSphere MEO network.

• Integration of Intelsat is progressing well, with synergy delivery ahead of schedule and OpEx down 9% year-over-year.

• Staff costs reduced by 20% year-over-year on a like-for-like basis.

Financial highlights

• Q1 2026 revenue was €847 million, up 80.5% year-over-year on a reported basis, and up 3.1% like-for-like at constant FX.

• Adjusted EBITDA reached €404 million, up 57% year-over-year, with a margin of 47.7%.

• Capital expenditures for Q1 2026 were €319 million, with full-year CapEx expected to be front-loaded at around €700 million.

• €306 million in new and renewed contracts secured in Q1, supporting a gross backlog of €6.2 billion.

• Adjusted Net Profit was €14 million, down from €42 million, mainly due to higher depreciation, amortisation, and financing costs post-Intelsat acquisition.

Outlook and guidance

• 2026 financial outlook for stable revenue and adjusted EBITDA reaffirmed on a like-for-like and constant FX basis.

• CapEx for 2026 expected around €700 million, including IRIS² and meoSphere investments.

• Commitment to investment grade metrics and net leverage target of 3.0x or below.

• Government revenues expected to ramp up in H2 as U.S. contract timing effects ease.

• Aviation margins to benefit from conversion of equipment revenue to service revenue.