Viasat Secures A$252 Million Contract for SouthPAN Satellite Services

Viasat has secured a A$252 million contract with Geoscience Australia and Toitu Te Whenua Land Information New Zealand for its SouthPAN network across Australia and New Zealand. The contract strengthens Viasat's partnerships with key government agencies and broadens its presence in fast-growing sectors like aviation and emergency services. Despite the win, investors still need to consider the company's ongoing capital intensity and strain on free cash flow.

Title: Viasat Secures $252 Million Contract for SouthPAN Network Expansion in Australia and New Zealand

Viasat Inc. (NASDAQ: VSAT) has secured a $252 million AUD contract with Geoscience Australia (GA) and Toitū Te Whenua Land Information New Zealand (LINZ) to expand its SouthPAN network across Australia and New Zealand. This latest agreement builds on Viasat's existing partnership with the governments of both countries and represents a significant extension of its services in the region. The contract, which is part of Viasat's Communication Services segment, includes the continuation of services from existing in-orbit satellites and the addition of a new payload [1].

SouthPAN, a collaborative satellite-based augmentation system developed jointly by Australia and New Zealand, provides precise positioning and navigation services to support various sectors, including aviation, maritime, agriculture, surveying, and emergency response. The expanded network aims to enhance precision and reliability, enabling industries to innovate where accuracy is critical. For instance, in agriculture, SouthPAN can increase productivity through applications such as precision spraying, yield mapping, and controlled traffic farming. In mining and construction, it can improve personnel safety through smart geo-fencing technologies [1].

The contract marks a significant milestone for Viasat, which has a history of providing advanced Positioning, Navigation, and Timing (PNT) services globally. The company's President, Todd McDonell, expressed enthusiasm about the expansion, noting that SouthPAN represents extraordinary potential for the region. The network can save lives by enabling precision safety tracking, help farmers improve productivity through automated device tracking, and support future transport management systems [1].

While this contract is a notable win for Viasat, investors should also consider the company's ongoing capital intensity and strain on free cash flow. In the first quarter of its 2026 fiscal year, Viasat reported a 4% year-over-year increase in revenue, with the company's Defense and Advanced Technology division driving growth. However, the company reported a net loss of $56.4 million, which was lower than previous quarters but still a significant figure [3]. Viasat's capital expenditures, including the upcoming launches of the ViaSat-3 constellation, may continue to put pressure on its financials in the near term.

In conclusion, Viasat's $252 million contract for SouthPAN network expansion demonstrates the company's ability to secure significant government contracts and expand its services in key sectors. However, investors should remain mindful of the company's capital intensity and the potential impact on its financial performance.

References
[1] https://www.globenewswire.com/news-release/2025/08/19/3135439/0/en/Australia-and-New-Zealand-Expand-SouthPAN-Program-with-Viasat-through-252m-AUD-Award-for-Additional-Satellite-Services.html
[2] https://www.viasat.com/news/latest-news/government/2025/australia-new-zealand-expand-southpan-program-with-viasat/
[3] https://www.sdbj.com/technology/communication-tech/viasat-q1-shows-modest-growth/?utm_campaign=viasat-q1-shows-modest-growth&utm_medium=rss&utm_source=rss