Telesat Corporation Class A Common Shares and Class B Variable Voting Shares Q3 2025 Earnings Recap

Telesat's Q3 2025 results reflect operational challenges, highlighted by a significant revenue decline due to contract renegotiations, though LEO segment development shows promising progress.

Key Takeaways

• Revenues decreased by $37 million to $101 million, primarily due to a lower rate from DISH on the Nimiq 5 contract and the expiration of the Anik F3 contract.
• Adjusted EBITDA fell to $47 million with an adjusted EBITDA margin of 46%, impacted by increased operating expenses linked to Telesat Lightspeed initiatives.
• Despite revenue challenges, Telesat reported strong interest in its LEO offerings, with a first satellite launch planned for late next year and efforts underway to enhance its capital structure.
• Year-to-date cash generated from operations reached $97 million, with a solid cash position of $483 million.
• Telesat continues to expect 2025 revenues in the range of $405 million to $425 million amid ongoing investments in its satellite technology.