Telesat (TSAT) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was CAD 106 million (USD 106 million), down 30% year-over-year, mainly due to contract renewals and reduced services for key customers.

• Net income for Q2 2025 was CAD 76 million (USD 76 million), compared to CAD 129 million (USD 129 million) in Q2 2024, impacted by lower revenue and a smaller gain on debt repurchase, partially offset by a foreign exchange gain.

• Telesat Lightspeed LEO program is progressing technically and commercially, with backlog exceeding CAD 1 billion and new multi-year agreements, including Viasat.

• Six-month revenue was CAD 223 million, a 27% decrease year-over-year, with net income at CAD 24 million versus CAD 77 million in the prior year.

• Focus remains on refinancing restricted group debt due December 2026 and hiring a new CFO.

Financial highlights

• Q2 2025 consolidated revenues were CAD 106 million, down CAD 46 million or 30% year-over-year.

• Adjusted EBITDA for Q2 2025 was CAD 59 million (USD 59 million), down 43% year-over-year; margin at 55.3%.

• Net income for Q2 was CAD 76 million, compared to CAD 129 million in Q2 2024.

• Cash and cash equivalents at June 30, 2025, were CAD 547 million, nearly unchanged from year-end 2024.

• Operating expenses for Q2 2025 were CAD 51 million, down 10% year-over-year, mainly due to higher capitalized engineering and lower consulting costs.

• Interest expense fell by CAD 8 million due to debt repurchases; cumulative debt repurchased totals CAD 857 million at an average price of CAD 0.53.

• Recorded a CAD 115 million FX gain in Q2, compared to a CAD 34 million loss in Q2 2024.

Outlook and guidance

• 2025 revenue guidance reiterated at CAD 405–425 million (USD 405–425 million).

• Adjusted EBITDA expected between CAD 170–190 million for 2025, reflecting increased LEO operating expenses.

• Capital expenditures for 2025 expected at CAD 900 million to CAD 1.1 billion, nearly all for Lightspeed.

• CAD 2.2 billion available under government funding agreements; cash and short-term investments at CAD 550 million.