SES (SESGL) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached €1,602 million, up 72.4% year-over-year, driven by the full consolidation of Intelsat and strong Networks growth.

• Adjusted EBITDA rose 47.0% year-over-year to €725 million, with a margin of 45.2%, reflecting Intelsat acquisition, synergy realization, and disciplined execution.

• Adjusted net loss was €89 million, mainly due to higher depreciation, amortization, and financing costs post-Intelsat acquisition.

• Adjusted free cash flow was negative €130 million, reflecting timing of investments, higher capex, and adverse working capital.

• Shareholder-approved treasury share cancellation reduced total shares by ~6% to 417 million.

Financial highlights

• Networks revenue surged 89.0% year-over-year to €1,018 million, led by Mobility (+169.9%) and Government & Defense (+41.9%).

• Media revenue increased 46.5% to €571 million, benefiting from Intelsat consolidation and capacity optimization.

• Gross backlog stood at €6.4 billion, supported by €1.2 billion in new business and renewals.

• Adjusted EBITDA margin declined to 45.2% from 53.3% in H1 2025.

• Adjusted net debt/EBITDA ratio rose to 4.4x from 3.9x at year-end 2025.

Outlook and guidance

• Full-year 2026 outlook for stable revenue and adjusted EBITDA is reaffirmed, with stronger H2 expected from contract ramps in government, defense, and mobility.

• CapEx guidance for 2026 remains at ~€700 million, excluding €100–150 million for C-band clearance.

• Commitment to investment grade metrics and net leverage target of 3.0x or below.

• Once leverage target is met, intention to increase annual base dividend and prioritize exceptional cash flows for shareholder returns.

• No additional risks anticipated for the remainder of 2026 beyond those disclosed at year-end 2025.