SES (SESGL) Q3 2024 earnings summary

Executive summary

• Operational and financial performance is tracking to the top end of 2024 outlook, driven by strategic wins and strong commercial momentum across all verticals, with Intelsat acquisition progressing as planned.

• mPOWER MEO constellation deployment is on track, with IRIS² concession award supporting future MEO growth and launches scheduled through 2027.

• Regulatory process for the Intelsat acquisition is progressing well, with multiple clearances secured and closing expected in H2 2025.

• Signed €900 million in renewals and new business, including a $200 million NATO contract and multi-year media deals.

Financial highlights

• Revenue for the first nine months was €1.475 billion, down 1.1% year-over-year at constant FX; Networks up 2.9% year-over-year.

• Adjusted EBITDA was €775 million, down 2% year-over-year, with margin stable at 53%.

• Adjusted free cash flow grew 5% year-over-year to €262 million, mainly due to lower CapEx and higher interest income.

• €450 million returned to shareholders in 2024 via interim dividend and share buyback.

• Net leverage at 1.1x, with €3.2 billion in cash and cash equivalents.

Outlook and guidance

• Full year 2024 revenue and adjusted EBITDA are expected at the top end of the €1,940–2,000 million and €950–1,000 million ranges.

• CapEx for 2024 remains within €500–550 million, with an average of €350 million annually for 2025–2028.

• Ambition for 2025 is at least stable year-on-year performance, with full guidance to be provided in February.

• Sustained growth in revenue and adjusted EBITDA projected, with low to mid single-digit CAGR for revenue and mid single-digit CAGR for adjusted EBITDA through 2028.