Telesat (TSAT) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was $418 million, down 27% year-over-year, mainly due to rate and capacity reductions by North American DTH and lower enterprise revenue.

• Net loss for 2025 was $530 million, compared to a $302 million loss in 2024, driven by reduced revenue, higher impairment losses, and increased charges related to LEO warrants.

• Significant progress on the Lightspeed LEO constellation, with over $770 million invested in 2025 and first launches expected in late 2026; full global service expected by end of Q1 2028, delayed by three months due to ASIC chip readiness.

• Lightspeed optimized for defense, dedicating 500 MHz (25%) of capacity to military Ka-band (Mil-Ka), with minimal cost and no schedule impact.

• Strong demand from government and defense sectors, with contracts and MOUs in place with Canada, the US, and Korea, and awarded a U.S. Department of War contract.

Financial highlights

• 2025 revenue: $418 million; adjusted EBITDA: $213 million; cash and cash equivalents at year-end: $510 million.

• Q4 2025 revenue: $94 million; adjusted EBITDA: $40 million.

• GEO segment adjusted EBITDA for 2025 was $284 million, down 36%, with a margin of 77% (down from 80%).

• Capital expenditures in 2025: $708 million, mostly for Lightspeed, below guidance due to milestone payment deferral.

• GEO backlog at year-end was $800 million; LEO backlog was $1.0 billion.

Outlook and guidance

• 2026 GEO revenue expected between $300 million and $320 million, a decline of $90–$110 million year-over-year.

• GEO adjusted EBITDA for 2026 projected at $210–$230 million, excluding refinancing and non-recurring costs.

• LEO segment investment in 2026 expected at $1.0–$1.2 billion, including OpEx, capitalized labor, and interest.

• Sufficient liquidity to meet obligations before Telesat Canada debt matures in December 2026.