Telesat (TSAT) Q3 2026 earnings summary

Executive summary

• C$2.7bn Canadian Defence Investment Agency agreement, including options, provides secure Military Ka-band services to the Canadian Armed Forces and supports Lightspeed expansion from 156 to 225 satellites.

• Lightspeed global service target shifted from end-Q1 to end-Q2 2028; high-latitude commercial service and initial revenue remain targeted for end-Q1 2028.

• Sovereign LEO pipeline described as compelling, with meaningful opportunities envisioned mostly during 2027; timing remains difficult to predict.

Financial highlights

• Q3 revenue was C$80.6m, down 20% YoY; adjusted EBITDA was C$12.1m, down 74%, or down 41% excluding higher refinancing expenses; net loss was C$157.2m.

• 9M revenue was C$247.2m, down 24%; adjusted EBITDA was C$69.3m, down 60%, or down 42% excluding higher refinancing expenses; net loss was C$866.7m.

• Net loss included fair-value losses of C$90m in Q3 and C$577.3m in 9M, alongside a GEO goodwill impairment, lower adjusted EBITDA and foreign-exchange loss in 9M.

• Refinancing expenses were C$25m in Q3 and C$46m in 9M, versus C$16m and C$26m in the prior-year periods.

Outlook and guidance

• 2026 GEO revenue guidance reiterated at C$300m–C$320m and adjusted EBITDA at C$210m–C$230m, excluding non-recurring refinancing costs.

• Full-year Lightspeed spending forecast reduced to C$1.1bn–C$1.3bn from C$1.3bn–C$1.5bn, reflecting expected satellite and launch payment timing.

• First two Pathfinder satellites expected to launch on a third-party Falcon 9 in mid-2027; first 15-satellite launch expected around September 2027, subject to readiness.

• Higher-latitude commercial service and initial revenue remain targeted for end-Q1 2028; global service is expected by end-Q2 2028, with all 225 satellites in orbit by end-2028.

• Further GEO revenue declines expected in 2027; Nimiq 6 renewal with Bell expected, likely at a lower rate. 2027 guidance planned for early next year.