Core Insights - Viasat, Inc. is deploying the NexusWave connectivity service through its Inmarsat Maritime unit to support EXMAR's operational and crew connectivity needs across its gas carrier fleet [1][10] Group 1: Deployment and Objectives - EXMAR aims to enhance communication between its vessels and shore teams while improving onboard connectivity for seafarers, which is crucial for operational efficiency [2] - The deployment of NexusWave reflects a strong partnership between Viasat and EXMAR, built over more than two decades, and marks the beginning of further collaboration to enhance connectivity solutions [3] Group 2: Technical Features and Benefits - NexusWave is a fully managed connectivity solution that integrates multiple network layers, including GX Ka-band, LEO, LTE, and L-band, to ensure stable maritime connectivity [4] - The service has already been activated on part of EXMAR's fleet, leading to improved ship-to-shore collaboration and reliable connectivity for critical applications like video conferencing [5] - Crew members benefit from free, unlimited data access during off-duty time, contributing to improved welfare [5] Group 3: Cost Efficiency and Security - Consolidating connectivity services under a single provider is expected to reduce EXMAR's fleetwide operating expenses by approximately 20% [5] - NexusWave is designed to integrate with EXMAR's existing IT and cybersecurity infrastructure, ensuring secure connectivity through features like end-to-end encryption [6] Group 4: Implementation and Future Prospects - Extensive configuration testing was conducted before full deployment, allowing for a rapid rollout across EXMAR's operational vessels [7] - Viasat is experiencing growth in its Communication Services segment, with the launch of the ViaSat-3 F2 satellite expected to enhance network capacity and performance [8]

Q3 FY2026 Earnings Results February 5, 2026 Forward-looking statements This presentation contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements regarding projections of earnings, revenue, Adjusted EBITDA, net leverage, free cash flow, capital expenditures, investments, costs, expected cost savings and s ...

Core Insights - Evergreen Marine has upgraded its fleet to Inmarsat's NexusWave bonded connectivity solution, enhancing crew experience and accelerating digitalisation [1][2][3] Group 1: Company Developments - Evergreen Marine is the first Taiwanese operator to implement the NexusWave solution, reinforcing its long-standing partnership with Inmarsat Maritime [1] - The upgrade to NexusWave introduces bonded, multi-network connectivity, providing fast speed, unlimited data, and always-on performance for crew and operations [2] - The solution is designed to enhance crew welfare, strengthen cybersecurity, and support operational excellence [3] Group 2: Technological Advancements - NexusWave leverages the ViaSat-3 ultra-high-capacity network, enabling scalable platforms for predictive analytics and real-time monitoring across the fleet [2] - The solution is secure-by-design and engineered to scale with demand, aligning with Evergreen's growth plans [2][3] - The transition to NexusWave is part of Evergreen's 'Evergreen IT' modernisation programme, aimed at continuous innovation for customers [1][3]

Core Insights - Inmarsat Maritime, a subsidiary of Viasat, has launched the next phase of its NexusWave bonded connectivity service, coinciding with the upcoming launches of the ViaSat-3 Flight 2 and Flight 3 satellites [1][2] Group 1: Service Enhancements - The introduction of the new generation of maritime terminals will provide NexusWave customers with a significant increase in bandwidth, enhancing performance and flexibility to meet evolving maritime needs [2][3] - NexusWave combines multiple network capacities (GEO Ka-band, LEO, LTE, and L-band) into a single connectivity solution, enabling faster data transfers and improved network efficiency for onboard internet experiences [3][4] Group 2: Technological Advancements - The new VS60 maritime terminal, developed by Intellian and utilizing Viasat's software-defined radio technology, supports high-bandwidth applications and achieved download speeds exceeding 250 megabits per second during sea trials [4][5] - The ViaSat-3 satellites will feature over 1,000 steerable spot beams, allowing dynamic bandwidth allocation to meet demand across global shipping lanes and offshore locations [5] Group 3: Strategic Positioning - Inmarsat Maritime's Vice President emphasized the strong position of NexusWave's multi-orbit architecture and the new terminal in supporting global fleet operations, reinforcing commitments to reliability and customer experience [6] - Viasat's President highlighted the consistent performance of NexusWave in a complex connectivity landscape, aiming to provide more bandwidth and flexibility as ViaSat-3 capacity becomes available [6]

Financial Data and Key Metrics Changes - For Q2 FY2026, the company reported a net loss of $61 million, an improvement from a net loss of $138 million in Q2 FY2025, primarily due to a favorable service revenue mix, lower depreciation and amortization, and reduced SG&A expenses [5][17] - Revenue grew by 2% year-over-year to $1.1 billion, with adjusted EBITDA increasing by 3% to $385 million, resulting in a 34% adjusted EBITDA margin [15][17] - Free cash flow for the quarter was $69 million, contributing to a trailing 12-month total of $147 million, marking three consecutive quarters of positive free cash flow [13][17] Business Line Data and Key Metrics Changes - In the communication services segment, awards increased by 35% to $1.03 billion, while revenue was $837 million, up 1% year-over-year [18][20] - The defense and advanced technologies (DAT) segment saw awards decline by 9% to $467 million, but revenue grew by 3% to $304 million, driven by growth in InfoSec and cyber [21][22] - The aviation revenue grew by 15%, supported by an increase in commercial aircraft in service and higher average revenue per aircraft [18][19] Market Data and Key Metrics Changes - The backlog increased to $3.9 billion, up approximately $140 million year-over-year, despite the sale of the energy system integration business [17][18] - The company noted a significant uptick in interest for commercial mobile space networks, indicating a growing market for direct-to-consumer device non-terrestrial network connectivity [9][10] Company Strategy and Development Direction - The company is focused on launching Viasat 3 Flight 2 and Flight 3, which are expected to significantly enhance bandwidth capacity and drive growth in communication services [7][8] - The strategic review committee is evaluating capital allocation priorities, including the potential separation of government and commercial businesses to enhance competitive positioning [10][29] - The company aims to optimize its capital structure and reduce leverage, targeting a leverage ratio of three times net debt adjusted EBITDA or lower [14][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth trajectory supported by increased reliance on space-based assets for national security and growing demand for resilient communications [8][24] - The company anticipates fiscal 2026 revenue growth in low single digits year-over-year, with flattish adjusted EBITDA and variability quarter to quarter [23][24] - Management is closely monitoring the potential impacts of the U.S. government shutdown, estimating delays in DAT awards and adjusted EBITDA [25][26] Other Important Information - The company expects capital expenditures for the year to be about $1.2 billion, with significant investments related to the completion of Viasat 3 [26][27] - The company has moved $175 million in cash from Inmarsat to Viasat, with plans to transfer a total of $400-$500 million over time [28] Q&A Session Summary Question: Update on evaluating the possibility of a split and vertical integration opportunities - Management is continuously evaluating options for vertical integration and dual-use systems, with no set end date for this process [33][34] Question: Details on international spectrum ownership and monetization - The company holds a substantial amount of global spectrum and is exploring ways to maximize its value through operational investments and potential partnerships [36][39] Question: Insights on the Equitus project and ideal customers - Equitus aims to modernize infrastructure for spectrum allocations, with discussions ongoing with regional operators and the European Space Agency [40][43] Question: Clarification on backlog growth and recognition cadence - Management indicated that backlog growth is strong, with a focus on converting efforts into future growth, particularly with the upcoming capacity from Flight 2 [51][53] Question: Demand signals for defense bookings beyond the U.S. - Management noted healthy performance in the U.S. and increasing demand signals in Europe, particularly related to national security [89]

Financial Data and Key Metrics Changes - For Q2 FY 2026, the company reported a net loss of $61 million, an improvement from a net loss of $138 million in Q2 FY 2025, primarily due to a favorable service revenue mix, lower depreciation and amortization, and reduced SG&A expenses [5][17] - Revenue grew by 2% year-over-year to $1.1 billion, with adjusted EBITDA increasing by 3% to $385 million, resulting in a 34% adjusted EBITDA margin [15][17] - Free cash flow for the quarter was $69 million, contributing to a trailing 12-month free cash flow of $147 million, marking three consecutive quarters of positive free cash flow [13][16] Business Line Data and Key Metrics Changes - In the Communication Services segment, awards increased by 35% to $1.03 billion, while revenue grew by 1% to $837 million, driven by growth in Aviation and Government Satcom [18][21] - The Defense and Advanced Technologies (DAT) segment saw awards decline by 9% to $467 million, but revenue increased by 3% to $304 million, supported by growth in InfoSec and Cyber [21][23] - Fixed Services and Other revenue decreased by 16% due to a decline in U.S. fixed broadband subscribers, ending the quarter with 150,000 subscribers [20][17] Market Data and Key Metrics Changes - The backlog increased to $3.9 billion, up approximately $140 million year-over-year, despite the sale of the energy system integration business [17][12] - The DAT segment backlog reached a record of $1.2 billion, up 31% year-over-year and 14% sequentially [7][17] - The company noted a significant uptick in interest for commercial mobile space networks, indicating a growing market for direct-to-consumer device connectivity [9] Company Strategy and Development Direction - The company is focused on launching the ViaSat-3 satellites, which are expected to significantly enhance bandwidth capacity and drive growth in Communication Services [7][8] - A strategic review is ongoing regarding capital allocation and the potential separation of government and commercial businesses to enhance competitive positioning [10][29] - The company aims to optimize its capital structure and reduce leverage, targeting a leverage ratio of 3x net debt adjusted EBITDA or lower [14][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth trajectory supported by increased reliance on space-based assets for national security and growing demand for resilient communications [8][24] - The company anticipates continued variability in quarterly performance but expects fiscal 2026 revenue to increase by low single digits year-over-year [23][24] - Management highlighted the potential impact of a U.S. government shutdown on DAT awards and adjusted EBITDA, estimating a delay of up to $100 million in awards [25] Other Important Information - The company plans to spend approximately $1.2 billion in capital expenditures for the year, with a significant portion allocated to the completion of ViaSat-3 [26][28] - The company has moved $175 million in cash from Inmarsat to Viasat, with expectations to transfer a total of $400 million to $500 million over time [28] Q&A Session Summary Question: Update on evaluating the possibility of a split and vertical integration opportunities - Management indicated that they are continuously evaluating options for vertical integration and dual-use systems, with no specific timeline for completion [32][33] Question: Spectrum ownership and monetization strategies - Management confirmed that their spectrum position is substantial and globally coordinated, and they are exploring ways to derive value from it while fulfilling public interest obligations [36][39] Question: Details on the Equatys project and ideal customers - The Equatys project aims to modernize infrastructure for spectrum allocations, with discussions ongoing with regional operators and the European Space Agency [40][43] Question: Backlog growth and recognition cadence - Management emphasized that backlog growth is strong, and they are focused on converting this into future revenue, particularly with the upcoming capacity from Flight 2 [52][54] Question: Defense bookings and demand signals in Europe - Management noted increasing demand for sovereign capabilities in national security, particularly in Europe, and expects this trend to continue [90][91]

Financial Data and Key Metrics Changes - For Q2 FY2026, the company reported a net loss of $61 million, an improvement from a net loss of $138 million in Q2 FY2025, primarily due to a favorable service revenue mix, lower depreciation and amortization, and reduced SG&A expenses [5][17] - Revenue grew by 2% year-over-year to $1.1 billion, with adjusted EBITDA increasing by 3% to $385 million, resulting in a 34% adjusted EBITDA margin [15][17] - Free cash flow for the quarter was $69 million, contributing to a trailing 12-month total of $147 million, marking three consecutive quarters of positive free cash flow [12][16] Business Line Data and Key Metrics Changes - In the communication services segment, awards increased by 35% to $1.03 billion, while revenue was up 1% to $837 million, driven by growth in aviation and government SATCOM [18][20] - The defense and advanced technologies segment saw awards decline by 9% to $467 million, but revenue increased by 3% to $304 million, supported by growth in InfoSec and cyber solutions [21][22] - The maritime revenue declined by 3%, but installations of NexusWave were up 40% sequentially, indicating a focus on growth opportunities [19][20] Market Data and Key Metrics Changes - The backlog increased to $3.9 billion, up approximately $140 million year-over-year, despite the sale of the energy system integration business [17] - The company noted a significant uptick in interest for commercial mobile space networks, indicating a growing market for direct-to-consumer device connectivity [9][10] Company Strategy and Development Direction - The company is focused on launching Viasat 3 Flight 2 and Flight 3, which are expected to significantly enhance bandwidth capacity and drive growth in communication services [6][10] - A strategic review is ongoing regarding capital allocation and the potential separation of government and commercial businesses to enhance competitive positioning [10][29] - The company aims to optimize its capital structure and reduce leverage, targeting a leverage ratio of three times net debt adjusted EBITDA or lower [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth trajectory supported by increased reliance on space-based assets for national security and growing demand for resilient communications [7][8] - The company anticipates fiscal 2026 revenue growth in low single digits year-over-year, with flattish adjusted EBITDA, and expects variability in performance quarter to quarter [24][26] - Management is closely monitoring the potential impacts of the U.S. government shutdown, estimating a delay in DAT awards of up to $100 million and an impact on adjusted EBITDA of up to $20 million [25][26] Other Important Information - The company generated $282 million in cash flow from operations, up 18% year-over-year, with capital expenditures of $214 million [16][17] - The company is actively working on a five-year plan focusing on growth, innovation, capital efficiency, and returns [28][29] Q&A Session Summary Question: Update on evaluating the possibility of a split and vertical integration opportunities - Management is continuously evaluating options for vertical integration and dual-use systems, with no specific timeline for completion [33][34] Question: Spectrum ownership and monetization strategies - The company holds a substantial amount of global spectrum and is exploring ways to maximize its value through operational investments and potential partnerships [36][39] Question: Details on the Equitus project and ideal customers - Equitus aims to modernize infrastructure for spectrum allocations, with discussions ongoing with regional operators and the European Space Agency [40][43] Question: Backlog growth and revenue recognition metrics - Management highlighted that backlog growth is strong, and while specific metrics are not tracked, they are confident in converting backlog into future growth [52][55] Question: Demand signals in the defense sector, particularly in Europe - There is a growing demand for sovereign capabilities in national security, with countries seeking to reduce reliance on foreign systems [91][92]

Financial Performance - Viasat reported Q2 FY2026 revenue of $1.141 billion, a 2% increase compared to $1.122 billion in Q2 FY2025[20, 23] - Adjusted EBITDA for Q2 FY2026 was $385 million, a 3% increase compared to $375 million in Q2 FY2025[21, 23] - The company generated $69 million in free cash flow during the quarter, a $58 million improvement year-over-year[22] - For the twelve months ended September 30, 2025, Viasat generated $147 million in free cash flow[22] - Operating cash flow increased by 18% YoY, from $239 million to $282 million[23] Segment Performance - Communication Services (CS) revenue grew 1% YoY, reaching $837 million in Q2 FY26[23, 27] - Defense and Advanced Technologies (DAT) segment revenues grew 3% YoY, reaching $304 million in Q2 FY26[23, 39] - CS segment Adjusted EBITDA increased 6% YoY to $337 million[23, 29] - DAT segment Adjusted EBITDA declined 15% YoY to $48 million[23, 41] Awards and Backlog - Total awards increased 17% YoY to $1.498 billion[19, 23] - CS segment awards increased 35% YoY to $1.031 billion[23, 26] - DAT awards declined 9% YoY to $467 million[23, 37] - DAT segment backlog grew 31% to a record $1.2 billion[23, 36, 45]

Core Insights - Viasat is set to launch its ViaSat-3 F2 satellite on November 5, 2025, which is expected to more than double the company's current network capacity [1][4] - The satellite will provide broadband services from geostationary orbit at 79° west longitude, targeting increased customer demand across the Americas [2][3] - ViaSat-3 F2 will enhance flexibility in satellite operations and support high-demand applications such as commercial aviation Wi-Fi and government connectivity [3][4] Company Overview - Viasat is a global leader in satellite communications, aiming to connect consumers, businesses, governments, and militaries worldwide [5] - The company completed its acquisition of Inmarsat in May 2023, enhancing its capabilities and resources [5] Market Demand - There is an exponential growth in demand for resilient global satellite communications from various sectors, including commercial mobility and defense [4] - The upcoming launch of ViaSat-3 F2 is crucial for Viasat to meet this increasing demand in target markets [4] Technological Advancements - ViaSat-3 F2 features dynamic beam forming capabilities, allowing efficient bandwidth deployment to high-demand areas [4] - The satellite is designed to support next-generation connectivity platforms, enhancing service delivery and performance [1][3]

Core Insights - Pulsar International and Inmarsat Maritime have announced a commitment to roll out NexusWave across more than 300 vessels over the next 12 months, highlighting the increasing demand for reliable maritime connectivity [1][2][4] Group 1: Company Developments - Pulsar is the first NexusWave partner in the Mediterranean market and has a proven track record of successful installations, indicating its strong position in the maritime connectivity sector [2] - The rollout of NexusWave will enhance digitalisation, support decarbonisation strategies, and improve crew welfare by providing high-quality internet experiences onboard [2][4] - To facilitate this rollout, Pulsar plans to expand its global reach, local sales teams, and project management capabilities, ensuring seamless installation and support for customers [3][4] Group 2: Industry Context - The maritime industry is increasingly seeking connectivity solutions that are secure, dependable, and capable of supporting operational performance and crew well-being [4] - The NexusWave service combines multiple network technologies (GEO Ka-band, LEO, LTE, and L-band) to deliver reliable performance, reflecting a trend towards integrated connectivity solutions in the shipping sector [2][4] - The program is set to commence installations in October 2025, which will play a crucial role in enhancing operational resilience and the onboard experience for seafarers [4]