SES (SESGL) Q4 2024 earnings summary

Executive summary

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

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

• Secured landmark IRIS² Project concession, expanding MEO network and addressable market.

• Intelsat acquisition remains on track for H2 2025, with all financial targets and €2.4 billion NPV in synergies reaffirmed.

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

Financial highlights

• 2024 revenue stable year-over-year at €2.001 billion (-0.9% YOY at constant FX), at the top end of outlook.

• Adjusted EBITDA exceeded expectations at €1.028 billion (+0.9% YOY), margin improved to 51%.

• Adjusted Net Profit €126 million, down due to higher depreciation, amortization, and tax.

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

• €1.2 billion returned to shareholders since 2021, with €0.50/A-share dividend for FY 2024 and €150 million share buyback completed.

Outlook and guidance

• 2025 revenue and Adjusted EBITDA expected to remain stable year-over-year, with network growth offsetting Media declines.

• CapEx for 2025 guided at €425–475 million; average €325 million for 2026–2029, excluding IRIS².

• IRIS² CapEx to ramp from 2027, averaging €400 million annually through 2030, with up to €1.8 billion total.

• Combined company (post-Intelsat) targets €3.8 billion pro forma revenue and €1.8 billion adjusted EBITDA in 2024, with mid-single-digit CAGR through 2028.

• Plan to increase annual base dividend once net leverage falls below 3x post-Intelsat, expected within 12–18 months after acquisition.