Financial Data and Key Metrics Changes - Telesat reported revenue of CAD 418 million for 2025, with adjusted EBITDA of CAD 213 million, exceeding guidance of CAD 170 million to CAD 190 million [16][17] - The net loss for the year was CAD 530 million, compared to CAD 302 million in 2024, primarily due to reduced revenue and EBITDA, and impairment of goodwill related to the GEO business [18] - Interest expense decreased to CAD 218 million in 2025 from CAD 240 million in 2024, reflecting a buyback of CAD 857 million of Telesat Canada debt [17] Business Line Data and Key Metrics Changes - The GEO business segment generated adjusted EBITDA of CAD 284 million, down from 80% margin in 2024 to 77% in 2025 [19] - The LEO segment reported a loss before interest, tax, depreciation, and amortization of CAD 67 million, driven by operating expenses of CAD 72 million [19] Market Data and Key Metrics Changes - The commercial landscape for Lightspeed is evolving positively, with significant opportunities in the government defense market due to increased defense investments globally [6][7] - Telesat signed a substantial agreement with Viasat for broadband services to commercial airlines, indicating strong demand for high throughput, low latency satellite connectivity [6] Company Strategy and Development Direction - Telesat is focused on successfully deploying the Lightspeed project while expanding its revenue backlog ahead of global commercial availability [13] - The company is optimizing Lightspeed for defense requirements by adding military Ka spectrum, which is expected to enhance its offerings to government clients [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the defense sector, driven by geopolitical factors and increased demand for satellite communication services [7][8] - The company anticipates a delay in the full global commercial service of Lightspeed to Q1 2028 due to chip readiness issues, but remains confident in the program's progress [4][5] Other Important Information - Telesat plans to spend between CAD 1 billion and CAD 1.2 billion on Lightspeed in 2026, including operating costs and capital expenditures [24] - The company is engaged in refinancing CAD 1.7 billion of debt in Telesat Canada, which is due in December 2026 [20][25] Q&A Session Summary Question: Regarding the military Ka-band capacity and Canadian Armed Forces deal - Management confirmed ongoing negotiations with the Canadian government for the ESCP-P project, which is focused on defense and sovereignty requirements [29][30] Question: Potential for selling military Ka-band capacity to other defense departments - Management indicated that the capacity would be available to allied nations, significantly increasing the total supply of Mil-Ka capabilities [32][33] Question: Updates on the launch schedule and number of satellites by end of 2027 - Management confirmed the initial launch is still scheduled for the end of this year, with expectations to have 96 satellites in orbit by the end of next year [45] Question: Impact of the spectrum change on gateway infrastructure and user terminals - Management stated that the gateway infrastructure remains unaffected, and Mil-Ka compatible user terminals will be available alongside commercial ones [46] Question: Backlog potentials from the Canadian military and overall OpEx required - Management expressed confidence in significantly growing the Lightspeed backlog this year, particularly in defense applications, but refrained from speculating on specific backlog impacts from ESCP-P [50][51]