Telesat Corporation
11/04/2025 | Press release | Distributed by Public on 11/04/2025 06:02
Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2025 (Form 6-K)
Telesat Reports Results for the Quarter and Nine Months Ended September 30, 2025
OTTAWA, CANADA - November 4, 2025 - Telesat (Nasdaq and TSX: TSAT), one of the world's largest and most innovative satellite operators, today announced its financial results for the three and nine-month periods ended September 30, 2025. All amounts are in Canadian dollars and reported under IFRS® Accounting Standards unless otherwise noted.
"I am pleased with our performance thus far in 2025," commented Dan Goldberg, Telesat's President and CEO. "Our Telesat Lightspeed team continues to make good progress on both the engineering and commercial fronts, as we work toward an initial satellite launch late next year and toward further expanding our $1.1 billion Telesat Lightspeed backlog. On the GEO side of the business, the year has developed largely as we had expected, and we maintain our disciplined focus on maximizing the utilization of, and cash flow from, our existing GEO satellite fleet, while remaining open to value-creating opportunities. We also took important steps to optimize the company's corporate and capital structure and enhance our financing options. We distributed 62% of the equity in Telesat Lightspeed to an indirect subsidiary of Telesat Corporation, and our advisors have started to engage with the advisors of the major holders of our GEO segment debt, with the goal of finding the best approach to address that debt."
For the quarter ended September 30, 2025, Telesat reported consolidated revenue of $101 million, a decrease of 27% ($37 million) compared to the same period in 2024. The impact from foreign exchange was minimal. The decrease was primarily due to a lower rate on the renewal of a long-term agreement with a North American direct-to-home television customer and the expiration of a separate agreement with that customer, as well as to reductions in services for certain other customers, including an Indonesian rural broadband program and another North American direct-to-home customer.
Operating expenses for the quarter were $58 million, an increase of 26% ($12 million) from 2024. The impact from foreign exchange was minimal. The increase was primarily due to higher legal and professional fees and to LEO headcount growth, partially offset by higher capitalized engineering.
Adjusted EBITDA1 for the quarter was $47 million, a decrease of 51% ($49 million). The impact from foreign exchange was minimal. The consolidated Adjusted EBITDA margin1 was 46.3%, compared to 69.5% in the same period in 2024.
Telesat's net loss for the quarter was $121 million compared to $68 million in net income for the same period in the prior year. The change was due to lower revenue combined with a foreign exchange loss this year compared to a foreign exchange gain in 2024 (due to the impact of changes in foreign exchange rates on the Canadian dollar value of our US dollar denominated debt), and a loss in 2025 associated with the changes in the fair value of the Telesat Lightspeed Financing Warrants, as well as a gain on repurchase of debt recorded in 2024.
For the nine-month period ended September 30, 2025, Telesat reported consolidated revenue of $324 million, a decrease of 27% ($119 million) compared to the same period in 2024. When adjusted for changes in foreign exchange rates, revenue declined 28% ($125 million) compared to 2024. The decrease for the nine-month period is attributable to the same factors that accounted for the decrease in the three-month period ending September 30, 2025, along with lower LEO consulting revenues.
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Operating expenses for the nine-month period were $161 million, up 8% ($12 million) from the same period in 2024. When adjusted for changes in foreign exchange rates, operating expenses were up 7% ($10 million) from 2024. The increase for the nine-month period is attributable to the same factors that accounted for the increase in the three-month period ending September 30, 2025, partially offset by lower expenses associated with the lower LEO consulting revenue.
Adjusted EBITDA1 for the nine-month period was $173 million, a decrease of 44% ($137 million) or 45% ($141 million) when adjusted for foreign exchange rates. The Adjusted EBITDA margin1 was 53.4%, compared to 70.0% in the same period in 2024.
For the nine months ended September 30, 2025, Telesat's net loss was $97 million compared to net income of $145 million for the same period in the prior year. The change for the nine-month period is attributable to the same factors that accounted for the change in the three-month period ending September 30, 2025.
Business Highlights
| ▲ | Telesat Lightspeed Equity Distribution |
| - | In September 2025, Telesat Canada distributed 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. The indirect subsidiary is wholly-owned by Telesat Canada's parent entities and is a non-guarantor under Telesat Canada's debt documents. There were no changes to the Company's operations as a result of this transaction. |
| ▲ | Donald Tremblay Joins Telesat as Chief Financial Officer |
| - | In August 2025, Telesat announced that Donald Tremblay would be joining the company as CFO, succeeding Andrew Browne, whose plan to retire was announced in March 2025. Donald, most recently CFO at Champion Iron, brings over 35 years of finance leadership to Telesat, including at publicly-listed companies in high-growth, capital-intensive industries. |
| ▲ | Backlog and Utilization as of September 30, 2025 |
| - | Telesat had contracted GEO backlog2 of approximately $900 million. |
| - | Telesat had contracted LEO backlog2 of approximately $1.1 billion. |
| - | Fleet utilization was 69%. |
2025 Financial Outlook
(assumes an average foreign exchange rate of US$1=C$1.42)
Telesat expects full year 2025:
| ● | Revenues to be between $405 million and $425 million; |
| ● | Adjusted EBITDA1 to be between $170 million and $190 million on a consolidated basis; |
| ● | LEO operating expense of between $75 million and $85 million; |
| ● | Capital expenditures (including both cash paid and accrued) to be in the range of $900 million to $1,100 million, virtually all of which is related to Telesat Lightspeed. |
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Telesat's quarterly report on Form 6-K for the quarter ended September 30, 2025 has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC's website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca.
Conference Call
Telesat has scheduled a conference call on Tuesday, November 4, 2025, at 10:30 a.m. EST to discuss its financial results for the quarter ended September 30, 2025.
Dial-in Instructions:
The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 9159435. Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe).
Webcast:
The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/dao6hwjc. A replay of the webcast will be archived on Telesat's website under the tab "Investors".
Dial-in Audio Replay:
A replay of the teleconference will be available from one hour after the end of the call on November 4, 2025 until 11:59 p.m. EST on November 18, 2025. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 9159435.
About Telesat
Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world's most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth.
Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company's state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.
Investor Relations Contact:
James Ratcliffe
+1-613-748-8424
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Telesat Corporation published this content on November 04, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on November 04, 2025 at 12:02 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]