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]

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]

Core Viewpoint - Telesat is enhancing its Lightspeed satellite constellation by adding 500 MHz of military Ka-band spectrum to meet the increasing global demands of allied defense users, which will significantly improve military satellite communication capabilities [1][2][3] Group 1: Company Developments - Telesat is integrating 500 MHz of military Ka-band (Mil-Ka) spectrum into its initial 156 satellites, which will replace an equal amount of commercial Ka-band spectrum without affecting the launch schedule or incurring significant additional costs [1] - The first two production satellites of Telesat Lightspeed are scheduled for launch in December 2026, followed by a rapid launch schedule throughout 2027 [4] Group 2: Industry Context - There is a growing global demand for Mil-Ka LEO satellite capabilities as governments respond to geopolitical developments and recognize the operational advantages of advanced LEO constellations [3] - Military satellite communication architectures require interoperability across national networks, allowing coalition partners to integrate capabilities and maintain assured communications under joint operational command [3][2]

Core Insights - Telesat reported a consolidated revenue of $418 million for the year ended December 31, 2025, a decrease of 27% ($153 million) compared to the previous year, primarily due to rate and capacity reductions from North American DTH customers and lower revenue from rural broadband enterprise customers [3][10] - The company experienced a net loss of $530 million for the year, compared to a loss of $302 million in the prior year, attributed to reduced revenue, higher non-cash impairment losses, and increased charges related to Telesat LEO warrants [6][12] - Telesat made significant progress in developing the Telesat Lightspeed constellation, with strong interest from government users, particularly in defense and sovereignty requirements [2][14] Financial Performance - Operating expenses for 2025 were $212 million, an increase of 2% ($4 million) from 2024, driven by higher legal and professional fees related to equity distribution and debt refinancing [4] - Adjusted EBITDA for the full year 2025 was $213 million, a decrease of 45% ($171 million) from 2024, reflecting the decline in revenue [5] - Capital expenditure for 2025 was $708 million, below expectations due to lower spending on Telesat Lightspeed development [8] Business Developments - Telesat announced the addition of Military Ka-band (Mil-Ka) capacity to the Telesat Lightspeed satellites to enhance connectivity for defense users [3] - The company is focused on refinancing Telesat Canada’s debt, which begins to mature late in 2026 [3][21] - Telesat Government Solutions was awarded a contract under the U.S. Department of War's SHIELD IDIQ program, highlighting the value of Telesat Lightspeed for mission-critical services [14] Market Position and Outlook - The backlog for the GEO segment totaled approximately $800 million, while the LEO backlog was around $1.0 billion at the end of 2025 [9][38] - Telesat expects GEO revenue for 2026 to be between $300 million and $320 million, with Adjusted EBITDA projected between $210 million and $230 million, excluding non-recurring costs [21] - The company anticipates total spending on the Telesat Lightspeed project to be between $1.0 billion and $1.2 billion [21]

Core Viewpoint - Telesat is set to announce its financial results for the year ending December 31, 2025, during a conference call scheduled for March 17, 2026, at 10:30 a.m. EDT [1] Group 1: Financial Results Announcement - Telesat will release its financial results prior to the conference call on its website under the "Investors" section [2] - The conference call will be accessible via a toll-free number for North America and an international number for callers outside North America [2] - A replay of the teleconference will be available for a limited time after the call [3] Group 2: Company Overview - Telesat is recognized as one of the largest and most successful global satellite operators, known for its engineering excellence and customer service [4] - The company is focused on delivering connectivity solutions that address complex communication challenges, enhancing operations and driving growth for its customers [4] Group 3: Innovation and Future Connectivity - Telesat Lightspeed, the company's advanced Low Earth Orbit (LEO) satellite network, aims to meet future connectivity demands with high-capacity, secure, and resilient links [5] - The network is designed to provide fibre-like speeds and is tailored for various sectors including telecom, government, maritime, and aeronautical customers [5]

Core Insights - Telesat has announced the acquisition and lease of land for new landing stations in Saskatchewan and Quebec to enhance its Telesat Lightspeed Low Earth Orbit (LEO) satellite network [1][2][3] Group 1: Company Developments - The new landing stations will facilitate data routing between the Telesat Lightspeed LEO satellite network and major fibre and internet exchange points, improving network resiliency and performance [1][3] - Telesat Lightspeed is the largest space program in Canada's history, aimed at expanding terrestrial telecom networks and bridging the digital divide with secure, high-speed broadband connectivity [2][5] - Site preparation for the Quebec landing station is underway, with completion expected in Q3 2026, while the Saskatchewan sites are anticipated to be finished by the end of 2026 [3] Group 2: Strategic Importance - The strategically located facilities in Saskatchewan and Quebec will strengthen connectivity across Canada and contribute to a global terrestrial foundation ahead of Telesat's first satellite launch scheduled for December [3] - The initiative supports Canada's economic growth and reinforces the protection of Arctic and northern territories by enabling next-generation digital services [2]

Core Insights - Telesat and Hanwha Systems have signed a memorandum of understanding (MoU) to collaborate on next-generation sovereign satellite connectivity solutions and user terminals compatible with Telesat's Low Earth Orbit (LEO) network, Telesat Lightspeed [1][2] Group 1: Collaboration Details - The MoU follows a Letter of Intent between the Canadian Government and the Korean Government to pursue initiatives in next-generation commercial LEO satellite communications and advanced maritime platforms [2] - Hanwha and Telesat will explore cooperative programs, including the K-LEO satellite constellation and defense user terminals compatible with both K-LEO and Telesat Lightspeed [3] - The collaboration includes Hanwha's participation in the Canadian Patrol Submarine Project (CPSP), where Telesat Lightspeed services will be a key aspect of Hanwha's bid [3] Group 2: Strategic Importance - The partnership aims to enhance sovereign LEO communications capabilities for Canada, South Korea, and allied partners, supporting critical defense missions and national priorities [4] - Telesat's President and CEO emphasized the combination of Telesat Lightspeed's architecture with Hanwha's expertise to deliver reliable communications [4] - Hanwha's CEO highlighted the partnership's role in strengthening its position in the global market and advancing its role in defense and space technology [4] Group 3: Company Backgrounds - Telesat is recognized as one of the largest and most innovative global satellite operators, focusing on delivering critical connectivity solutions [5] - Telesat Lightspeed is designed to meet the needs of telecom, government, maritime, and aeronautical customers, offering high-capacity, secure, and resilient links [6] - Hanwha Systems specializes in advanced radar, command and control, satellite, and defense electronics solutions, supporting national security and global defense programs [7]

Core Viewpoint - Telesat is facing lawsuits from certain creditors regarding the equity distribution of its Telesat Lightspeed business, which the company asserts are without merit and intends to defend vigorously [1][2]. Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, known for its engineering excellence and industry-leading customer service [3]. - The company collaborates with customers to provide critical connectivity solutions that address complex communication challenges, enhancing operations and driving profitable growth [3]. Telesat Lightspeed Program - Telesat Lightspeed is a state-of-the-art Low Earth Orbit (LEO) satellite network designed to meet the connectivity demands of various sectors, including telecom, government, maritime, and aeronautical customers [4]. - The program aims to redefine global satellite connectivity by offering ubiquitous, affordable, high-capacity, secure, and resilient links with fiber-like speeds [4].

Core Points - Telesat has entered a strategic partnership with the Government of Canada and MDA Space to develop a multi-frequency military satellite communications capability for the Canadian Armed Forces [1][2][4] - The Enhanced Satellite Communications Project – Polar (ESCP-P) aims to enhance Arctic sovereignty and support NORAD and NATO commitments [2][9] - The project represents a multi-billion dollar investment that is expected to drive job creation and economic growth in Canada [5][6] Company Involvement - Telesat will leverage over 55 years of satellite engineering expertise to deliver a state-of-the-art MILSATCOM architecture [2][4] - The company has a long-standing track record of supporting mission-critical connectivity for the Canadian Armed Forces [4][7] - Telesat's involvement in the ESCP-P project is expected to strengthen Canada's domestic defence and space sectors [6][12] Government Engagement - The Defence Investment Agency (DIA) is leading the procurement process for the ESCP-P, utilizing a strategic partner model to accelerate program delivery [3][11] - The project is part of Canada's commitment to modernize military capabilities and ensure secure communications in remote regions [8][10] - The Industrial and Technological Benefits (ITB) Policy will be applied to the project, promoting innovation and collaboration across Canada's space sector [6][12]

Financial Data and Key Metrics Changes - In Q3 2025, Telesat reported consolidated revenues of $101 million, a decrease of $37 million compared to the same quarter in 2024 [7] - Adjusted EBITDA decreased by $49 million to $47 million, with an adjusted EBITDA margin of 46% [7][8] - Operating expenses increased by $12 million to $58 million, primarily due to higher headcount growth in Telesat Lightspeed and increased legal and professional fees [9] - The company recorded a net loss of $121 million in Q3 2025, compared to a net income of $68 million in Q3 2024 [10] Business Line Data and Key Metrics Changes - In the GEO segment, revenue decline was attributed to a lower rate on the renewal of a long-term agreement with DISH and the expiration of a separate agreement [3][4] - The LEO segment is progressing well with satellite development, ground infrastructure, and software, with strong interest in Telesat Lightspeed from AERO and government users [4] Market Data and Key Metrics Changes - Interest in Telesat Lightspeed is particularly strong among AERO and government users, with expectations of increased defense spending in Canada [21][22] - The company has a minimum revenue commitment of $60 million per year from the Canadian government for rural broadband connectivity, which is separate from defense commitments [24] Company Strategy and Development Direction - Telesat is focused on optimizing its capital structure and enhancing financing options, including the distribution of equity in Telesat Lightspeed to a subsidiary [5] - The company plans to launch its first satellites in late 2026, with expectations to enter global service by the end of 2027 [27][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities in defense due to increased government spending commitments [22] - The company reiterated its guidance for 2025, expecting revenues between $405 million and $425 million and adjusted EBITDA between $170 million and $190 million [12][13] Other Important Information - Telesat's total leverage ratio was calculated at 8.676 times, with compliance in all covenants of its credit agreements [13] - The company has approximately $480 million in cash and short-term investments, along with $2 billion available under funding agreements with the Government of Canada and Quebec [13] Q&A Session Summary Question: Status of debt negotiations - Management indicated it is too early to determine the outcome of debt negotiations with holders [17] Question: Guidance on EBITDA and GEO revenue - Management explained that underspending in LEO was offset by increased professional fees related to refinancing, clarifying the guidance situation [19][20] Question: Demand from the defense sector - Management confirmed strong interest from the defense sector, particularly in relation to rural broadband and defense spending commitments [21][22] Question: Rationale behind LEO equity carve-out - The rationale was to optimize capital structure and enhance funding flexibility, with no current plans to raise more equity [29][30] Question: Spectrum transactions in the industry - Management noted that while they have the capability to launch a direct-to-device network, their focus remains on deploying Lightspeed [32] Question: Launch timeline and testing - Management confirmed a gap of two to four months between the first launch of Pathfinder satellites and subsequent launches [36] Question: Partnership with Farcast - Management highlighted the collaboration with Farcast to develop innovative user terminals for Lightspeed [40] Question: Interest in space-based data centers for AI - Management expressed that while they see AI's potential in network efficiency, they are not planning to leverage Lightspeed for space-based data centers [44] Question: Gateway ground network progress - Management reported good progress in building out the gateway ground network, with several teleports already announced [52]