Telesat (TSAT) Q2 2025 earnings summary

Executive summary

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

• Net income for Q2 2025 was $76 million, compared to $129 million in Q2 2024, impacted by lower revenue and a smaller gain on debt repurchase, partially offset by a foreign exchange gain.

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

• Focus remains on refinancing restricted group debt due December 2026 and on hiring a new CFO.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $59 million, down 43% year-over-year; margin was 55.3%.

• Six-month revenue was $223 million, a 27% decrease year-over-year; Adjusted EBITDA for the period was $126 million, down 41%.

• 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, up from $67 million in the prior year.

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

Outlook and guidance

• 2025 revenue guidance reiterated at $405–$425 million.

• Adjusted EBITDA expected between $170–$190 million for 2025, reflecting increased LEO operating expenses.

• Capital expenditures for 2025 forecasted at $900 million to $1.1 billion, almost entirely for Telesat Lightspeed.

• CAD 2.2 billion available under government funding agreements; cash and short-term investments at CAD 550 million.