Canada's Telesat Q1 revenue falls 25%, hurt by contract non-renewals; net loss widens

Telesat

05/05/2026 12:43

Overview

Canada satellite operator's Q1 revenue fell 25% yr/yr amid GEO segment contract non-renewals

Q1 adjusted EBITDA dropped 48% yr/yr, reflecting lower revenue and higher refinancing-related expenses

Net loss widened to C$151 mln, mainly due to lower revenue and goodwill impairment in GEO segment

Outlook

Telesat maintains 2026 GEO revenue guidance at C$300 mln to C$320 mln

Company expects 2026 GEO adjusted EBITDA of C$210 mln to C$230 mln, excluding debt refinancing costs

Telesat forecasts 2026 total Lightspeed program spending at C$1.0 bln to C$1.2 bln

Result Drivers

BROADCAST CONTRACT NON-RENEWALS - Co said GEO segment revenue decline was mainly due to non-renewals of certain broadcast contracts in 2025

COST CONTROL - Co said disciplined cost control helped partially offset revenue pressures in GEO segment

DEBT REFINANCING EXPENSES - Higher expenses related to debt refinancing weighed on adjusted EBITDA

Company press release: ID:nGNX29bPbg

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$87 mln
C$85 mln (1 Analyst)
Q1 Net Income
-C$151 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the wireless telecommunications services peer group is "buy"

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(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.)