Telesat (TSAT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $87 million, down 25% year-over-year, with adjusted EBITDA of $35 million, down 48% year-over-year.

• Net loss widened to $151 million from $51 million in Q1 2025, mainly due to non-cash goodwill impairments and lower GEO segment performance.

• Significant progress on the Telesat LightSpeed LEO constellation, with $2.7 billion invested to date and commercial service expected by end of Q1 2028.

• Major contract signed with Northwestel for LightSpeed services in Nunavut, highlighting strong commercial and government interest, especially from defense sectors.

• Ongoing engagement with the Canadian government to finalize the ESCAPE program contract, a material opportunity for the business.

Financial highlights

• Consolidated revenue was $87 million, down 25% year-over-year; adjusted EBITDA was $35 million, down 48% year-over-year.

• GEO segment revenue dropped 26% to $86 million, mainly due to broadcast contract expirations and lower renewals; adjusted EBITDA was $53 million, down 37% year-over-year.

• LEO segment investment in Q1 2026 totaled $171 million ($152 million capex, $19 million opex).

• Cash and cash equivalents rose to $523 million at March 31, 2026.

• GEO segment adjusted EBITDA margin was 72% excluding refinancing costs.

Outlook and guidance

• 2026 GEO revenue expected between $300 million and $320 million.

• 2026 GEO adjusted EBITDA forecasted at $210 million to $230 million, excluding non-recurring refinancing costs.

• Total 2026 LightSpeed program spending projected at $1.0–$1.2 billion.

• LightSpeed global commercial service anticipated by end of Q1 2028.