Telesat Corp Reports Decline in Revenue Amid Strategic Progress.

Telesat Corp reported a decline in revenue and adjusted EBITDA for Q2 2025 due to a lower rate on a long-term agreement and reductions in services for other customers. Despite this, the company is making progress with its Telesat Lightspeed project, maintaining a backlog of over $1 billion and focusing on expanding opportunities across its target segments. Analysts rate the stock a Buy with a C$28.00 price target.

Telesat Corp (NASDAQ/TSX: TSAT) reported its Q2 2025 financial results, showing significant revenue challenges but notable progress in its Telesat Lightspeed program. The company reported Q2 revenue of $106 million, down 30% year-over-year, and Adjusted EBITDA of $59 million, a 43% decrease. Despite these 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 $900 million with fleet utilization at 70% [1].

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

The revenue decline 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. Operating expenses for the quarter were $51 million, a decrease of 10% from 2024. Adjusted EBITDA for the quarter was $59 million, a decrease of 43% [1].

Analysts have rated the stock a Buy with a C$28.00 price target, reflecting their optimism about the company's long-term prospects, particularly in the context of the Lightspeed project. Telesat maintains its 2025 guidance, projecting revenues between $405-425 million and Adjusted EBITDA of $170-190 million [1].

References:
[1] https://www.stocktitan.net/news/TSAT/telesat-reports-results-for-the-quarter-and-six-months-ended-june-30-k5qusm9h97x4.html