OTTAWA, Dec. 09, 2025 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced a strategic partnership agreement among the Government of Canada, Telesat Corporation and MDA Space to develop and deliver a multi-frequency, Arctic military satellite communications (MILSATCOM) capability to the Canadian Armed Forces. Leveraging over 55 years of satellite engineering and operations excellence, Telesat will play a pivotal role in deliv ...

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]

Core Insights - Telesat has expanded its partnership with Farcast, investing US$5 million and gaining a board seat to support the development of advanced satellite User Terminals for the Telesat Lightspeed program [1][3] Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, focusing on delivering critical connectivity solutions to address complex communication challenges [5] - Farcast, founded in 2019, specializes in high-performance satellite communication user terminals designed for optimal Size, Weight, Power, and Cost (SWaP-C) efficiency [7] Technology Development - Farcast's Active Electronically Scanned Antenna (AESA) technology allows simultaneous data transmission and reception, enhancing performance while reducing SWaP-C [2] - The collaboration between Telesat and Farcast has been ongoing since 2022, focusing on developing technology that meets the operational requirements for the Telesat Lightspeed network [3][4] Production Timeline - The fully integrated terminals with Telesat Lightspeed modem are expected to be available for volume production by 2027 [3][8] - Farcast is entering its production ramp in 2026, with full-scale manufacturing planned for 2027 [8] Funding and Financials - Farcast has raised a total of $13.6 million across various funding rounds and is currently seeking an additional $10 million in a Series Extension, which would bring total funding to over $23 million [9]

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]

Core Viewpoint - Telesat is set to announce its financial results for the three and nine month periods ending September 30, 2025, during a conference call scheduled for November 4, 2025, at 10:30 a.m. EST [1] Group 1: Financial Results Announcement - A news release containing Telesat's financial results will be posted on its website prior to the conference call [2] - The conference call will be accessible via a toll-free dial-in number 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 critical connectivity solutions to 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 telecom, government, maritime, and aeronautical customers [5]

Core Insights - Telesat has purchased land in Timmins, Ontario, to establish a Landing Station for its Telesat Lightspeed LEO satellite network, enhancing connectivity in Northern Ontario [1][2][3] Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, focusing on delivering critical connectivity solutions [4] - The Telesat Lightspeed program is noted as the largest space initiative in Canada's history, aimed at bridging the digital divide in rural and remote areas [2][5] Project Significance - The Landing Station in Timmins will connect Telesat's satellite network to terrestrial Points of Presence, facilitating high-performance broadband for various industries, including energy, mining, aviation, and maritime [2][3] - The project is expected to contribute to Canada's sovereignty in the Arctic and enhance the new space economy [2][3] Infrastructure and Location Benefits - Timmins offers a robust telecommunications infrastructure, including a 2,200 km long-haul fibre network and reliable hydroelectric power, making it an ideal site for the Landing Station [3] - The strategic geographic location of Timmins provides easy access to Southern Ontario and Western Quebec, supporting the resiliency requirements for the satellite network [3] Community Impact - The establishment of the Landing Station is anticipated to create new opportunities for the Timmins community and reinforce its position as a hub for innovation in Northern Ontario [3] - Local officials express pride in the project, highlighting its potential to connect remote communities and drive economic growth [3]

Company Overview - Telesat (TSAT) shares increased by 7.5% to close at $29.85, with a notable 27.7% gain over the past four weeks, driven by strong trading volume and interest in satellite and communication stocks due to rising demand for global connectivity [1] - The company is performing well in both its Low Earth Orbit (LEO) and Geostationary Orbit (GEO) satellite businesses, with significant momentum in the LEO segment, particularly through the Telesat Lightspeed program [2] Business Development - Telesat's commercial pipeline is robust, with a committed backlog for the Lightspeed program exceeding C$1 billion at the end of Q2 [2] - The company is making advancements in satellite development, ground infrastructure, and network software, including a partnership with Calian to develop the operational data platform for the Lightspeed LEO network [3] Financial Guidance - Telesat has reiterated its 2025 guidance, expecting revenues between C$405 million and C$425 million, with adjusted EBITDA projected between C$170 million and C$190 million [4] - Total capital expenditures are anticipated to be between C$900 million and C$1.1 billion, primarily related to the Lightspeed initiative [4] Earnings Expectations - The company is expected to report a quarterly loss of $0.94 per share, reflecting a year-over-year change of -1075%, with revenues projected at $69.96 million, down 31.1% from the previous year [5] - The consensus EPS estimate for Telesat has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Industry Context - Telesat is part of the Zacks Satellite and Communication industry, where another company, EchoStar (SATS), experienced a 2.4% decline in its stock price, with a 17.5% return over the past month [6] - EchoStar's consensus EPS estimate has changed by +3.1% over the past month, reflecting a year-over-year change of -136.5% [7]

Core Viewpoint - Telesat and Calian Group have partnered to develop the Operational Data Platform for the Telesat Lightspeed Low Earth Orbit (LEO) network, enhancing secure, real-time data connectivity across Telesat's satellite constellation [1][2][3]. Company Overview - Telesat is recognized as one of the largest and most innovative satellite operators globally, focusing on delivering critical connectivity solutions to address complex communication challenges [6]. - Calian Group has over 40 years of experience in providing mission-critical solutions across various sectors, including defence and space, emphasizing the importance of reliability and innovation [11]. Project Details - Calian will design, develop, integrate, and deploy the Operational Data Platform, which will serve as the secure data backbone for Telesat's LEO network, ensuring high availability and real-time situational awareness [2][3]. - The platform will support bi-directional, asynchronous data flows, facilitating automated mission responses and secure data exchanges among network components [3]. Strategic Importance - The Telesat Lightspeed initiative is positioned as a crucial advancement for Canada's national capability, providing ubiquitous and secure connectivity accessible globally [4]. - The partnership with Calian is an extension of their ongoing collaboration, which previously included the development of the Element Management System for the LEO network [5]. Technological Foundation - The Operational Data Platform will utilize Calian's proprietary Centralized Management Platform (CMP) as its architectural foundation, ensuring robust security and performance across both public and private cloud environments [4]. Market Focus - Telesat Lightspeed is designed to meet the rigorous connectivity demands of various sectors, including telecom, government, maritime, and aeronautical markets, aiming to redefine global satellite connectivity with high-capacity, secure links [7].

Core Insights - Telesat has completed the distribution of 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary, which is wholly-owned by Telesat Canada's parent entities [1] - The transaction does not result in any changes to the company's operations [1] Company Overview - Telesat is recognized as one of the largest and most successful global satellite operators, known for its engineering excellence and industry-leading customer service [2] - The company is focused on delivering critical connectivity solutions to address complex communications challenges, driving profitable growth for its customers [2] - Telesat Lightspeed, the company's advanced Low Earth Orbit (LEO) satellite network, aims to provide high-capacity, secure, and resilient links with fibre-like speeds, catering to telecom, government, maritime, and aeronautical sectors [2]

Core Insights - Telesat has appointed Donald Tremblay as the new Chief Financial Officer (CFO), effective October 20, 2025, succeeding Andrew Browne who is retiring after serving since 2019 [1][3] Group 1: Leadership Transition - Donald Tremblay brings over 35 years of financial expertise, including experience in equity and debt capital market transactions, mergers and acquisitions, compliance, and risk management [1][2] - Tremblay previously served as CFO at Champion Iron, Transalta, and Brookfield Renewable, where he significantly improved financial positions and market capitalizations [2] - Andrew Browne is recognized for his leadership and contributions, particularly in securing funding for Telesat Lightspeed and transitioning Telesat to a public company [3] Group 2: Company Overview - Telesat is one of the largest and most innovative global satellite operators, known for its engineering excellence and customer service [4] - The company focuses on delivering critical connectivity solutions to address complex communications challenges, aiming to drive profitable growth for its customers [4] Group 3: Future Plans - Telesat Lightspeed, the company's Low Earth Orbit (LEO) satellite network, is designed to meet the connectivity demands of various sectors, including telecom and government [5] - The network aims to provide high-capacity, secure, and resilient links with fiber-like speeds, redefining global satellite connectivity [5]