Financial Data and Key Metrics Changes - Total revenue for 2025 was $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decrease in the bulk segment [10][11] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024 [12] - Net income from continuing operations in 2025 was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons [10][12] - Bulk segment revenue decreased less than 1% due to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects and a decline in construction revenue [11][12] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [17] - The company anticipates that construction of the Hawaii desalination project will commence later in 2025, which is expected to significantly add to revenue and earnings growth in future periods [19] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, stable recurring revenue from bulk water, and growth potential in U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and support growth in municipal water projects [9][24] Management's Comments on Operating Environment and Future Outlook - Management noted that permitting delays for the Hawaii desalination project are common and not due to failures on the company's part, with expectations for construction to start later in the year [3][19] - The company is optimistic about the growth in retail and manufacturing segments, driven by strong demand for clean water and a solid balance sheet [25] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [15] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the previous year [14][15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit is required from the State Historic Preservation Department and is necessary before applying for other building permits [30][34] Question: How long will it take to obtain the other permits after the historical permit is received? - Other permits are expected to be more straightforward, but exact timelines are difficult to predict [38] Question: What is the outlook for O&M revenue? - There are significant opportunities in O&M, particularly in Southern California, with competitive bids being pursued [40] Question: How much of the new water capacity from the West Bay facility is already allocated? - The company plans for a five to ten-year horizon for asset planning, with demand tapering off in wetter months [43] Question: How quickly are energy cost recovery increases reflected in bulk services? - Energy cost recovery is reflected on a monthly basis based on average fuel and electricity costs [51] Question: What is the balance between public-private opportunities versus purely public projects? - The focus is on solid municipal business opportunities, particularly in Florida, due to regulatory changes [55]

Financial Data and Key Metrics Changes - IceCure Medical reported record fourth quarter sales of approximately $1.3 million, leading to total revenue from sales of $3.4 million for the full year ended December 31, 2025, reflecting significant growth driven by unit sales and FDA clearance [5][6][12] Business Line Data and Key Metrics Changes - The growth in sales was attributed to the positive effects of U.S. FDA clearance for ProSense in low-risk early-stage breast cancer and the continued adoption of ProSense in key markets [5][6] - The company is experiencing a clear uptick in interest and engagement from patients and facilities, with expectations to close an increasing number of system sales and installations during the second quarter of 2026 [17][20] Market Data and Key Metrics Changes - The FDA clearance has driven demand in other markets where ProSense already has approval, particularly in Europe, leading to expanded usage for new clinical applications [12][14] - In Canada, the company submitted a Class III amended application to expand regulatory approval for ProSense to include treatment for early-stage, low-risk invasive breast cancer in patients aged 60 and older, potentially impacting around 7,130 women annually [13][38] Company Strategy and Development Direction - IceCure Medical aims to triple its U.S. commercial team by the end of the year to address growing demand and achieve broader market penetration [17][20] - The company is focusing on increasing reimbursement coverage, particularly through the transition to CPT Category I codes, which is expected to spur additional demand and improve reimbursement rates [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the FDA clearance and new medical society guidelines recommending cryoablation for low-risk breast cancer will significantly enhance ProSense's adoption and market presence [6][8] - The company anticipates that the post-marketing study will accelerate the national rollout and availability of ProSense, with patient enrollment expected to commence in late summer [19][20] Other Important Information - IceCure Medical has seen a record number of peer-reviewed publications and conference presentations in 2025, enhancing ProSense's reputation and driving demand for its adoption [15][16] - The company is actively working with medical societies to improve reimbursement processes and expand its market presence [20][25] Q&A Session Summary Question: Plans for reimbursement coverage beyond Medicare - Management is focusing on Medicare Advantage plans and private payers, with a payer outreach program in place to increase coverage [23][25] Question: Impact of CPT-1 code on demand - Management believes that obtaining CPT-1 will improve total reimbursement and serve as a significant inflection point for growth [26] Question: Status of post-market study sites - Management confirmed that high interest has been shown from identified sites, with ongoing work to meet requirements for both clinical and commercial use [30][34] Question: Regulatory approval opportunities in Canada and Japan - The Canadian submission targets patients aged 60 and above, representing over 10,000 new cases annually, while in Japan, collaboration with Terumo is underway for regulatory submission [36][38]

Financial Data and Key Metrics Changes - IceCure Medical reported record fourth quarter sales of approximately $1.3 million, leading to total revenue from sales of $3.4 million for the full year ended December 31, 2025, reflecting significant growth driven by record unit sales and FDA clearance for ProSense [5][6][12] Business Line Data and Key Metrics Changes - The growth in sales was attributed to the positive effects of the U.S. FDA clearance for ProSense in low-risk early-stage breast cancer, which has led to broad adoption in key markets [5][6] - The company is experiencing a clear uptick in interest and engagement from patients and facilities, with expectations to close an increasing number of system sales and installations in the upcoming quarters [17][21] Market Data and Key Metrics Changes - The FDA clearance has driven demand in other markets where ProSense already has approval, particularly in Europe, leading to expanded usage for new clinical applications [12][14] - In Canada, the company submitted a Class III amended application to expand regulatory approval for ProSense to include patients aged 60 years and older, potentially impacting around 7,130 women diagnosed with low-risk breast cancer [13][37] Company Strategy and Development Direction - IceCure Medical aims to triple its U.S. commercial team by the end of the year to address growing demand and enhance market penetration [17] - The company is focusing on expanding its customer base through a post-marketing study, which is expected to accelerate the national rollout and availability of ProSense [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the strong global commercial momentum driven by regulatory approvals and new medical society guidelines recommending cryoablation for low-risk early-stage breast cancer [6][8] - The company anticipates that the upcoming CPT 1 code reimbursement will serve as a significant inflection point for growth, expected to be effective in early 2028 [25][41] Other Important Information - IceCure Medical is actively working with medical societies to enhance reimbursement coverage, focusing on Medicare Advantage and private payers [24] - The company has seen a record number of peer-reviewed publications and conference presentations, which are expected to further increase global exposure and demand for ProSense [15][16] Q&A Session Summary Question: Plans for reimbursement coverage beyond Medicare - Management is focusing on Medicare Advantage and private payers, with a payer outreach program in place to enhance reimbursement consistency post-FDA approval [23][24] Question: Impact of CPT I code on demand - Management believes that while CPT I will improve reimbursement, it will also serve as a critical point for accelerated growth in 2028 [25] Question: Status of post-market study sites - Management confirmed that high interest has been observed from identified sites, with ongoing efforts to meet requirements for both clinical and commercial use [29][33] Question: Regulatory approval opportunities in Canada and Japan - The Canadian submission targets patients aged 60 and above, representing over 10,000 new cases annually, while in Japan, collaboration with Terumo is underway for regulatory submission [37][39]

Financial Data and Key Metrics Changes - The company's total revenue for 2025 was $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decline in the bulk segment revenue [10] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024, indicating an improvement in gross margin [12] - Net income from continuing operations was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons due to historically low rainfall [10][11] - The bulk segment revenue decreased less than 1%, attributed to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects in 2024 and a lull in Hawaii project activity [11][12] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [18] - The company anticipates that construction of the Hawaii desalination project will commence later in 2025, which is expected to significantly add to revenue and earnings growth in future periods [20] Company Strategy and Development Direction - The company is focused on diversifying its business segments, including retail water operations in Grand Cayman, Caribbean-based bulk water business, and U.S.-based manufacturing and O&M businesses [25] - The completion of a new manufacturing facility in Florida is expected to enhance efficiency and throughput, positioning the company for growth in the municipal water market [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that permitting delays for the Hawaii project are common and not due to failures on the company's part, emphasizing ongoing efforts to mitigate schedule impacts [3][4] - The company expects continued growth in its retail business and stable recurring revenue from its bulk water operations, while also pursuing new project opportunities in the municipal sector [25] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in the third quarter of 2025 [16] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, representing a $24.4 million increase from the prior year-end [15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit required is from the State Historic Preservation Division, and it is the client's responsibility to obtain it. Progress is being made, but the process is slow [29][34] Question: How does the O&M revenue pipeline look going forward? - There are significant opportunities in O&M, particularly in Southern California, where the company believes it has competitive advantages [40] Question: How is the energy cost recovery reflected in bulk services? - Energy cost recovery increases are reflected on a monthly basis based on average fuel and electricity costs [52] Question: What is the balance between public-private opportunities versus purely public projects? - The company is focusing on solid municipal business opportunities, particularly in Florida, due to regulatory changes affecting water capacity [56] Question: Are there new market opportunities for the manufacturing segment? - The expanded facility allows the company to participate more significantly in the municipal water market, focusing on larger assemblies and production skids [58]

Financial Data and Key Metrics Changes - IceCure Medical reported record fourth quarter sales of approximately $1.3 million, leading to total revenue from sales of $3.4 million for the full year ended December 31, 2025, reflecting significant growth driven by record unit sales and FDA clearance for ProSense [5][6][12] Business Line Data and Key Metrics Changes - The growth in sales was attributed to the positive effects of the U.S. FDA clearance for ProSense in low-risk early-stage breast cancer and the continued broad adoption of the product in key markets [5][6] - The company is experiencing a clear uptick in interest and engagement from patients and facilities, with expectations to close an increasing number of system sales and installations during the second quarter of 2026 [16][19] Market Data and Key Metrics Changes - The FDA clearance has driven demand in other markets where ProSense already has approval, particularly in Europe, leading to expanded usage for new clinical applications [12][14] - In Canada, the company submitted a Class III amended application to expand regulatory approval for ProSense to include treatment for early-stage, low-risk invasive breast cancer in patients aged 60 and older, potentially impacting around 7,130 women annually [13][38] Company Strategy and Development Direction - The company aims to triple its U.S. commercial team by the end of the year to align with growing momentum and demand, focusing on broader penetration across the U.S. market [16][19] - IceCure is also working on obtaining CPT-1 code reimbursement to cover physician costs, which is expected to spur additional demand and improve reimbursement rates [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the FDA clearance and new medical society guidelines recommending cryoablation for low-risk breast cancer will significantly accelerate adoption and validate ProSense's role in modern breast cancer care [6][7] - The company anticipates that the post-marketing study will significantly accelerate the national rollout and availability of ProSense, with patient enrollment expected to commence in late summer [18][19] Other Important Information - The company highlighted the importance of independent studies and peer-reviewed publications in enhancing ProSense's reputation and driving demand for its adoption in breast cancer care [14][15] - IceCure is actively participating in medical conferences to engage with its target audience and promote ProSense for breast cancer treatment [11][12] Q&A Session Summary Question: Plans for reimbursement coverage beyond Medicare - Management indicated that they are focusing on Medicare Advantage programs and private payers, with a payer outreach program in place to increase reimbursement consistency [23][25] Question: Impact of CPT-1 code on demand - Management believes that obtaining CPT-1 code will improve total reimbursement and serve as a significant inflection point for growth [26] Question: Status of post-market study sites - Management confirmed that all 30 sites for the post-market study have been identified, with high interest from those sites to also serve as commercial sites [29][34] Question: Regulatory approval in Canada and Japan - The company submitted for regulatory approval in Canada for patients aged 60 and above, representing over 10,000 new cases annually, and is working with Terumo in Japan for formal submission to PMDA [38][39]

Financial Data and Key Metrics Changes - Consolidated revenue for 2025 totaled $132.1 million, a slight decrease of 1% from 2024, primarily due to decreased revenue in the services segment and a modest decline in the bulk segment [10][11] - Gross profit for 2025 was $48.4 million, representing 30% of total revenue, compared to $45.6 million or 34% of total revenue in 2024 [12] - Net income from continuing operations in 2025 was $18.6 million or $1.16 per diluted share, compared to $17.9 million or $1.12 per diluted share in 2024 [13] Business Line Data and Key Metrics Changes - Retail revenue increased by 6.6% to $33.6 million, driven by an 8.3% increase in the volume of water sold to a record 1.09 billion gallons due to historically low rainfall [10][11] - The bulk segment revenue decreased less than 1%, attributed to lower energy prices affecting the energy pass-through component of rates [11] - Services segment revenue decreased from $18.6 million in 2024 to $13.5 million in 2025, primarily due to the completion of major projects and a lull in Hawaii project activity [11][12] - Manufacturing segment revenue increased by 6% to $18.7 million, reflecting improved gross margins and production of higher-margin products [12][23] Market Data and Key Metrics Changes - Tourist air arrivals in the Cayman Islands increased by 2.9% to approximately 450,000 in 2025, contributing to retail sales growth [17] - The company anticipates that construction of the Hawaii desalination project will commence later in 2026, which is expected to significantly add to revenue and earnings growth in future periods [19][24] Company Strategy and Development Direction - The company aims to leverage its strong balance sheet to pursue desalination and water infrastructure opportunities in the Caribbean and North America, as well as potential strategic acquisitions [24] - Continued focus on operational excellence and efficiency improvements across all business segments is emphasized to enhance profitability [6][12] Management's Comments on Operating Environment and Future Outlook - Management noted that permitting delays for the Hawaii project are common and not due to failures on the part of the company [3][4] - The company expects ongoing growth in retail operations driven by economic strength in the Cayman Islands and low rainfall, while also anticipating a rebound in services segment revenue once construction activities resume [5][19] Other Important Information - The company increased its quarterly cash dividend by 27.3% to $0.14 per share starting in Q3 2025 [15] - Cash and cash equivalents totaled $123.8 million as of December 31, 2025, with no significant outstanding debt [14][15] Q&A Session Summary Question: What is the status of the Hawaii desalination project permit? - The permit required is from the State Historic Preservation Division, and the client is responsible for obtaining it, which is a prerequisite for applying for other building permits [28][32] Question: How does the O&M revenue pipeline look going forward? - There are significant opportunities in O&M contracts, particularly in Southern California, although the market is competitive [38] Question: What is the expected usage of the new West Bay facility's capacity? - The facility adds 1 million gallons a day of water, with usage dependent on demand fluctuations due to rainfall [39][41] Question: How quickly are energy cost recovery increases reflected in bulk services? - Energy cost recovery increases are reflected on a monthly basis based on average fuel and electricity costs [50] Question: Are there new market opportunities for the manufacturing segment? - The expanded facility allows for participation in the municipal RO system market, which is seeing renewed demand [56][57]

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 - Consolidated adjusted EBITDA for Q4 was $3.2 million, down from $6 million the prior year, driven by a pause in customer orders due to new global tariffs [4] - Full year consolidated adjusted EBITDA was $29.2 million, an improvement from the prior year [4][22] - Net sales for Q4 were $108.8 million, an increase of $7.8 million compared to Q4 2024, while full year net sales were $434.2 million, up $3.8 million from the prior year [21] Business Line Data and Key Metrics Changes - Air and Liquid Processing segment achieved record revenue and adjusted EBITDA in 2025, with Q4 revenue 10% higher than the prior year and full year revenue 7% above the prior year [6][7] - Forged and Cast Engineered Products (FCEP) reported Q4 net sales of $70.9 million, up from $66.5 million in Q4 2024, and full year net sales of $292.6 million, stable compared to $286.6 million in the prior year [12] - FCEP adjusted EBITDA for Q4 was $2.2 million, down from $5.5 million in the prior year, while full year adjusted EBITDA was $24.4 million [13] Market Data and Key Metrics Changes - Backlog for Air and Liquid declined by $8 million year-over-year, primarily due to the U.S. Navy's termination of the Constellation-class frigate program [8] - Significant order activity was noted at the start of 2026, with bookings up 73% compared to the prior year [8] - Demand for heat exchangers in the nuclear market reached record levels, indicating long-term growth potential [9] Company Strategy and Development Direction - The company initiated the removal of underperforming assets to improve adjusted EBITDA by $7-$8 million annually [4] - Focus on optimizing the Sweden facility and ramping up production to meet expected market growth [13][15] - Anticipation of significant margin expansion in the second half of 2026 and full year 2027 due to operational improvements and tariff protections [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about emerging from the steel market slowdown and improving profitability in 2026 [52] - The company noted that the roll market is recovering, and shutdown costs are behind them [25] - Management highlighted strong demand in the nuclear and AI data center markets, positioning the company for growth [10][9] Other Important Information - The company recorded significant one-time charges related to the exit from unprofitable operations, totaling $42.4 million in Q4 and $52.2 million for the full year [19] - The pension plan achieved fully funded status in early 2026, enhancing the company's liquidity position [24] Q&A Session Summary Question: Inquiry about Air and Liquid Processing margins - Management indicated that Q4 margins were affected by an unusual mix, and the full year is more representative of typical performance [29] Question: Clarification on customer behavior changes in Forged and Cast rolls - Management explained that customer behavior was impacted by tariff calculations, leading to a pause in orders, but demand is now recovering [32][34] Question: Involvement with Westinghouse's AP1000 reactors - Management confirmed past supply to Westinghouse and noted positive indicators for future activity in the nuclear market [46][48]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 2025 was $3.2 million, down from $6 million in the prior year, primarily due to a pause in customer orders in the forged and cast segment after new global tariffs were announced [4] - Full year consolidated adjusted EBITDA was $29.2 million, an increase of $1.1 million compared to the prior year, marking the third consecutive year of growth [21] - Net sales for Q4 2025 were $108.8 million, an increase of $7.8 million compared to Q4 2024, while full year net sales were $434.2 million, up $3.8 million from the previous year [20] Business Line Data and Key Metrics Changes - The Air and Liquid Processing segment achieved record revenue and adjusted EBITDA in 2025, with Q4 revenue up 10% year-over-year and full year revenue up 7% [6] - The Forged and Cast Engineered Products (FCEP) division reported Q4 net sales of $70.9 million, compared to $66.5 million in Q4 2024, and full year sales of $292.6 million, stable compared to $286.6 million in the prior year [12] Market Data and Key Metrics Changes - Backlog for the Air and Liquid segment declined by $8 million year-over-year, primarily due to the U.S. Navy's termination of the Constellation-class frigate program [7] - Significant order activity was noted at the start of 2026, with bookings up 73% compared to the prior year [7] Company Strategy and Development Direction - The company initiated the removal of underperforming assets to improve adjusted EBITDA by $7-$8 million annually [4] - The focus for FCEP is on optimizing the Sweden facility and ramping up production, with expectations for a 20% increase in production levels by Q3 2026 [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved profitability as the company emerges from the steel market slowdown, anticipating better results in 2026 [50] - The nuclear market continues to show strong activity, with expectations for growth in demand for heat exchangers and other products [10][46] Other Important Information - The company recorded significant one-time charges related to the exit from unprofitable operations, including a $42.4 million deconsolidation charge in Q4 [18] - The pension plan achieved fully funded status in early 2026, which is expected to positively impact the company's financial position [22] Q&A Session Summary Question: Insights on Air and Liquid Processing margins - Management indicated that the full year margins are more representative of typical performance, with Q4 being affected by an unusual mix of orders [28] Question: Changes in customer behavior regarding forged and cast rolls - Management explained that customer behavior was impacted by uncertainty around tariffs, but demand is now recovering as pricing stabilizes [31][32] Question: Involvement with Westinghouse's AP1000 reactors - Management confirmed past supply to Westinghouse and noted ongoing activity in the nuclear market, which is expected to ramp up [43][46]

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]