Telesat (TSAT) Q2 2026 earnings summary

Executive summary

• Signed a $2.7 billion, 15-year ESCP-P contract with the Canadian government for secure Arctic connectivity, expanding the Lightspeed constellation to 225 satellites, a 44% increase over prior plans, and accelerating LEO business growth.

• Lightspeed is fully funded, with global commercial service targeted for end of Q1 2028.

• GEO business saw sequential backlog expansion due to new contracts, despite ongoing revenue pressures and cost discipline efforts.

• Received US$189 million in incentive payments eligibility from the FCC for C-Band spectrum repurposing.

• Borrowed US$120 million for general corporate purposes to support business and optimize capital structure.

Financial highlights

• Q2 2026 consolidated revenue: $79 million, down 25% year-over-year; adjusted EBITDA: $22 million, down 62%; net loss: $559 million, mainly due to non-cash losses from Lightspeed Financing Warrants and FX impacts.

• Six-month revenue: $167 million, down 25% year-over-year; adjusted EBITDA: $57 million, down 55%; net loss: $710 million, compared to a $24 million gain in the prior year.

• Interest expense: $50 million, down from prior year due to lower term loan rates.

• GEO segment Q2 revenue: $78 million, down 26% year-over-year; adjusted EBITDA: $43 million, down 42%.

• LEO segment investment in Q2: $165 million ($20 million opex, $145 million capex); $337 million invested in Lightspeed in H1 2026.

Outlook and guidance

• GEO segment 2026 revenue guidance: $300–$320 million; adjusted EBITDA: $210–$230 million, excluding refinancing/litigation costs.

• Lightspeed program spending forecast raised to $1.3–$1.5 billion, up $300 million due to constellation expansion.

• Lightspeed global commercial availability expected end of Q1 2028.