Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2025

Core Insights - Telesat reported a significant decline in financial performance for the third quarter of 2025, with consolidated revenue of $101 million, a decrease of 27% compared to the same period in 2024, primarily due to lower renewal rates and service reductions [2][6] - The company experienced a net loss of $121 million for the quarter, contrasting with a net income of $68 million in the previous year, attributed to decreased revenue and foreign exchange losses [5][9] - Adjusted EBITDA for the quarter was $47 million, down 51% from the previous year, with an Adjusted EBITDA margin of 46.3%, significantly lower than 69.5% in 2024 [4][28] Financial Performance - For the three-month period ended September 30, 2025, Telesat's consolidated revenue was $101 million, down from $138 million in 2024 [21] - Operating expenses increased to $58 million, a rise of 26% from the previous year, driven by higher legal fees and LEO headcount growth [3][7] - The nine-month revenue totaled $324 million, also a 27% decrease from $443 million in 2024, with a similar decline in LEO consulting revenues contributing to this drop [6][9] Adjusted EBITDA and Margins - Adjusted EBITDA for the nine-month period was $173 million, a decrease of 44% from $310 million in 2024, with a margin of 53.4% compared to 70.0% in the prior year [8][28] - The Adjusted EBITDA margin for the quarter was 46.3%, reflecting a significant decline from the previous year's margin of 69.5% [4][27] Debt and Financial Structure - Telesat has taken steps to optimize its corporate and capital structure, including distributing 62% of Telesat Lightspeed equity to an indirect subsidiary [2][14] - The company is engaging with advisors to address the debt associated with its GEO segment, aiming to find the best approach for debt management [2][5] Backlog and Future Outlook - As of September 30, 2025, Telesat reported a contracted GEO backlog of approximately $900 million and a LEO backlog of about $1.1 billion [14][31] - The company anticipates full-year 2025 revenues to be between $405 million and $425 million, with Adjusted EBITDA expected to range from $170 million to $190 million [14][11]