Telesat Reports Q2 Revenue Decline Amid Positive Lightspeed Developments

Telesat reported Q2 revenue of C$106 million, down 30% YoY, but its Telesat Lightspeed project backlog surpassed $1 billion. The company reaffirmed its 2025 guidance and maintained a disciplined focus on expanding its footprint in key markets. Despite a decline in revenue, Telesat's backlog and strategic focus on Lightspeed offer positive developments.

Telesat (NASDAQ/TSX: TSAT) reported its Q2 2025 financial results, showing significant revenue challenges but progress in its Telesat Lightspeed program. The company reported Q2 revenue of C$106 million, down 30% year-over-year (YoY), and Adjusted EBITDA of C$59 million, a 43% decrease. Despite revenue headwinds, Telesat achieved notable milestones, including a Lightspeed backlog exceeding $1 billion and a strategic agreement with Viasat Inc. The company's GEO backlog stands at C$900 million with fleet utilization at 70% [3].

The decline in revenue was primarily due to a lower rate on the renewal of a long-term agreement with a North American direct-to-home television customer, reductions in services for certain other customers, including an Indonesian rural broadband program and another North American direct-to-home customer, and lower LEO consulting revenues [3]. Operating expenses for the quarter were C$51 million, a decrease of 10% from 2024. The decrease was primarily due to higher capitalized engineering, lower consulting costs related to LEO consulting revenue, and lower share-based compensation, partially offset by headcount growth for Telesat Lightspeed and higher legal and professional fees [3].

Telesat's President and CEO, Dan Goldberg, commented on the performance, stating, "We’re making strong progress on the Telesat Lightspeed technical and commercial fronts, and continuing our disciplined execution in our GEO segment" [2]. The Telesat Lightspeed backlog stands at over $1 billion, with the company focused on adding to it as they pursue opportunities across their target segments of enterprise, aviation, maritime, and government [2].

For the six-month period ended June 30, 2025, Telesat reported consolidated revenue of C$223 million, a decrease of 27% compared to the same period in 2024. When adjusted for changes in foreign exchange rates, revenue declined 28% compared to 2024. The decrease for the six-month period is attributable to the same factors that accounted for the decrease in the three-month period ending June 30, 2025 [3].

Telesat maintained its 2025 guidance, projecting revenues between C$405-425 million and Adjusted EBITDA of C$170-190 million. The company expects capital expenditures between CAD 900 million to CAD 1.1 billion, nearly all related to Telesat Lightspeed [1].

References:
[1] https://www.ainvest.com/news/telesat-q2-2025-earnings-call-unraveling-contradictions-leo-backlog-geo-cash-flow-debt-restructuring-2508/
[2] https://www.thespec.com/globenewswire/telesat-reports-results-for-the-quarter-and-six-months-ended-june-30-2025/article_6335da8b-1ed1-59af-acc4-1ae4bac14531.html
[3] https://www.stocktitan.net/news/TSAT/telesat-reports-results-for-the-quarter-and-six-months-ended-june-30-k5qusm9h97x4.html