Canada's Telesat Q3 revenue falls 20%, but beats estimates

Telesat

29/10/2026 11:15

Overview
Canada satellite operator's Q3 revenue fell 20% yr/yr but remained above analysts' expectations
Adjusted EBITDA dropped 74% yr/yr, impacted by debt refinancing expenses
Company signed C$2.7 bln contract with Canadian government for Lightspeed program

Outlook
Telesat reiterates 2026 GEO revenue guidance of C$300 mln to C$320 mln
Company expects 2026 GEO adj EBITDA of C$210 mln to C$230 mln, excluding debt refinancing costs
Telesat lowers 2026 Lightspeed program spending forecast to C$1.1 bln–C$1.3 bln from C$1.3 bln–C$1.5 bln

Result Drivers
CONTRACT NON-RENEWALS - Co said lower GEO revenue was mainly due to non-renewal of broadcast contracts, reduced capacity for broadcast and broadband customers, and removal from service of some GEO satellites
DEBT REFINANCING COSTS - Co said higher expenses related to debt refinancing weighed on adjusted EBITDA

Company press release: ID:nGNX51cYmj

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$81 mln
C$77.10 mln (6 Analysts)
Q3 Loss Per Share
 
C$3.09
 
Q3 Net Loss
 
C$157 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the wireless telecommunications services peer group is "buy"

Reuters Recommended Reads
Oct 27 - Canada's BCE sells minority stake in new tower unit to La Caisse for $1.75 billion
Oct 28 - Netherlands' KPN Q3 group service revenue rises;  reiterates 2026 outlook
Oct 28 - Norway's Telenor Q3 service revenue rises, maintains 2026 forecast

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)