Canada's Telesat Q4 revenue falls 26% on DTH, enterprise weakness

Telesat

17/03/2026 11:10

Overview

Canada satellite operator's Q4 revenue declined 26% yr/yr due to DTH and enterprise segment weakness

Q4 adjusted EBITDA fell 46% yr/yr, reflecting lower revenue and debt refinancing-related costs

Company posted narrower net loss of C$433 mln due to foreign exchange gains

Outlook

Telesat expects 2026 GEO revenue between C$300 mln and C$320 mln

Company sees 2026 GEO adj EBITDA at C$210 mln to C$230 mln, excluding non-recurring costs

Telesat projects 2026 Lightspeed spending of C$1.0 bln to C$1.2 bln

Result Drivers

DTH AND ENTERPRISE WEAKNESS - Co said Q4 revenue decline was mainly due to rate and capacity reductions by North American DTH customers and lower revenue from enterprise customers serving rural broadband

COST CONTROL - Co said lower share-based compensation and increased capitalized labour in LEO segment more than offset higher legal and professional fees related to equity distribution and debt refinancing, bringing operating expenses down by 14%

Company press release: ID:nGNXRNKQr

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
C$94 mln
C$90.35 mln (2 Analysts)
Q4 Net Income
-C$433.2 mln
Q4 Operating Expenses
C$50.3 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"

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.)