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 [17][18] - 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 [19] - 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 [18] 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 [20] - The LEO segment reported a loss before interest, tax, depreciation, and amortization of CAD 67 million, driven by operating expenses of CAD 72 million [20] - Capital expenditures for 2025 were CAD 708 million, below the expected CAD 900 million to CAD 1.1 billion [20][21] Market Data and Key Metrics Changes - The global market dynamics are shifting towards LEO services, with significant opportunities identified for Telesat Lightspeed, particularly in the government defense market [6][8] - Telesat signed a substantial agreement with Viasat for Lightspeed services, indicating strong demand for high throughput, low latency satellite connectivity [7] Company Strategy and Development Direction - Telesat is focused on successfully deploying Telesat Lightspeed while expanding its revenue backlog ahead of global commercial availability [13] - The company aims to maximize revenue from its existing GEO satellite fleet while managing costs to mitigate the impact of ongoing revenue decline [15] - Telesat is optimizing Lightspeed for defense requirements by adding military Ka spectrum, which is expected to enhance its service offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects for Lightspeed, particularly in defense applications, driven by increased global defense investments [8][9] - The geopolitical environment is creating a favorable landscape for Telesat, with allied countries focusing on resilient satellite communication services [9][10] - Management anticipates a significant increase in the Lightspeed backlog due to robust demand in the defense sector [52] Other Important Information - Telesat ended 2025 with CAD 150 million in cash on the balance sheet and expects sufficient liquidity to meet obligations prior to debt maturities [17][26] - The company is engaged in refinancing Telesat Canada debt, with a focus on achieving a successful outcome before initial maturities in December 2026 [21] Q&A Session Summary Question: Regarding the military Ka-band capacity and potential deals with the Canadian Armed Forces - Management confirmed ongoing negotiations with the government of Canada for the ESCP-P project, emphasizing the importance of timely contract finalization [30][31] Question: Will the military Ka-band capacity be available to other defense departments? - Management indicated that the capacity will be available to allied nations, highlighting the significant increase in Mil-Ka capacity compared to existing systems [32][33] Question: What is the expected EBITDA loss from the LEO segment in 2026? - Management provided guidance indicating that operating expenses for Lightspeed would be between CAD 90 million and CAD 110 million, with total expenditures expected to be CAD 1 billion to CAD 1.2 billion [39] Question: Updates on the launch schedule and number of satellites by the end of 2027 - Management confirmed that 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: Will Mil-Ka user terminals be available at the same time as commercial ones? - Management assured that Mil-Ka compatible user terminals will be available alongside commercial terminals, with no impact on gateway infrastructure [46][47]