Telesat (TSAT) investor relations material

Executive summary

• Q2 2025 revenue was $106 million, down 30% year-over-year, mainly due to lower rates on contract renewals and reduced services for enterprise and DTH customers.

• Net income for Q2 2025 was $76 million, down from $129 million in Q2 2024, impacted by lower revenues and smaller gains on debt repurchases, partially offset by a foreign exchange gain.

• Telesat Lightspeed (LEO) backlog exceeded $1 billion at quarter-end, with ongoing commercial progress and a new multi-year agreement with Viasat.

• Focus remains on refinancing restricted group debt maturing December next year, with engagement with lenders expected soon; CFO search ongoing.

Financial highlights

• Q2 2025 consolidated revenues were $106 million, down $46 million year-over-year; adjusted EBITDA was $59 million, down 43% year-over-year; adjusted EBITDA margin at 55%.

• Six-month revenue was $223 million, a 27% decrease year-over-year; six-month adjusted EBITDA was $126 million, down 41%.

• Operating expenses for Q2 2025 were $51 million, down 10% year-over-year, mainly due to higher capitalized engineering and lower consulting costs.

• Cash and cash equivalents at June 30, 2025, were $547 million, nearly unchanged from year-end 2024.

• Net cash from operating activities for the first half was $108 million.

Outlook and guidance

• 2025 full-year revenue guidance reiterated at $405–$425 million; adjusted EBITDA expected between $170–$190 million.

• LEO operating expenses projected at $110–$120 million, up from $74 million in 2024.

• Capital expenditures for 2025 expected at $900–$1,100 million, nearly all for Lightspeed.

• Sufficient liquidity with $550 million in cash/short-term investments and $2.2 billion available under government funding agreements.