SES (SESGL) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 operational and financial performance, with revenue of €2,001 million and Adjusted EBITDA of €1,028 million, driven by Networks growth and operational efficiency.

• Intelsat acquisition remains on track for H2 2025, with all financial targets reaffirmed and detailed synergy plans; regulatory process and integration planning are progressing.

• Commercial successes in Government, Mobility, and Media segments, with significant contract wins and renewals supporting future growth.

• mPOWER MEO constellation entered commercial service, with capacity increases planned through 2027 to accelerate revenue ramp-up.

• Secured IRIS² Project concession, driving next-generation MEO growth towards the end of the decade.

Financial highlights

• 2024 revenue stable year-over-year at €2,001 million, at the top end of outlook, with Adjusted EBITDA of €1,028 million (+0.9% YOY), and margin at 51%.

• Adjusted Net Profit at €126 million, down due to higher depreciation, amortization, and tax, partly offset by lower net interest cost.

• Adjusted Free Cash Flow was €253 million; net leverage at 1.1x, with €3.2 billion in cash and cash equivalents.

• €450 million returned to shareholders in 2024 via dividends and buybacks; €1.2 billion returned since 2021.

• Significant special items: €123 million impairment, €63–118 million restructuring/M&A costs, and €83 million C-band net income.

Outlook and guidance

• 2025 group revenue and Adjusted EBITDA expected to remain stable year-over-year, with higher network growth offsetting Media declines due to Brazilian customer bankruptcy and SD TV switch-offs.

• CapEx for 2025 guided at €425–475 million; average €325 million for 2026–2029, excluding IRIS²; IRIS²-related capex up to €1.8 billion from 2027.

• Intelsat acquisition to complete in H2 2025; combined company pro forma 2024 revenue of €3.8 billion and Adjusted EBITDA of €1.8 billion confirmed.

• Combined company expected to generate over €1 billion free cash flow pre-IRIS² by 2027–2028.

• Commitment to increase annual base dividend once net leverage falls below 3x post-Intelsat deal.