SES (SESGL) Q2 2025 earnings summary

Executive summary

• Completed transformational acquisition of Intelsat on 17 July 2025, creating a global multi-orbit satellite operator with significant synergies and enhanced scale.

• H1 2025 revenue was €978 million, flat year-over-year at constant FX, with Networks growth offsetting Media decline.

• Adjusted EBITDA reached €521 million (53% margin), slightly down year-over-year, with strong Networks performance.

• Networks segment now represents 60% of total revenue, driven by government and mobility demand.

• Integration plan and new leadership team in place, with efficiency initiatives reducing OpEx by 5% year-over-year.

Financial highlights

• H1 2025 revenue of €978 million, Networks up 10.3% year-over-year, Media down 12.1%, and Fixed Data down 4%.

• Adjusted EBITDA of €521 million (53% margin), adjusted net profit of €77 million, and adjusted free cash flow of €193 million, up 32% year-over-year.

• Net leverage at 1.1x, with €4.3 billion in cash and equivalents.

• Basic EPS for H1 2025: €0.02 per A-share, €0.01 per B-share.

• Gross contract backlog at €4.2 billion, with €690 million in new business and renewals.

Outlook and guidance

• FY 2025 revenue and adjusted EBITDA expected to remain stable year-over-year at constant FX.

• CapEx guidance: €425–475 million for 2025, annual average €325 million for 2026–2029 (excluding IRIS²); IRIS² capex to ramp up from 2027.

• Combined company targets low to mid-single digit revenue and mid-single digit adjusted EBITDA CAGR 2024–2028, with normalized adjusted FCF over €1 billion by 2027/28.

• Net leverage targeted below 3x within 12–18 months post-acquisition; dividend increases planned as leverage target is met.

• Commitment to investment grade metrics, progressive dividend, and prioritizing shareholder returns.