Telesat Q2 Revenue Down 30% YoY, Lightspeed Backlog Surpasses $1 Billion

Telesat reported a 30% YoY decline in Q2 2025 revenue to $106 million, with adjusted EBITDA down 43% to $59 million. Despite this, the Telesat Lightspeed backlog surpassed $1 billion, and a strategic agreement was signed with Viasat Inc. The company maintains its 2025 guidance, anticipating revenues between $405 million and $425 million and adjusted EBITDA between $170 million and $190 million.

Title: Telesat Reports Mixed Q2 2025 Results, Maintains 2025 Guidance

Telesat (NASDAQ/TSX: TSAT) reported its Q2 2025 financial results, revealing a significant decline in revenue and adjusted EBITDA. The company's Q2 revenue fell by 30% year-over-year (YoY) to $106 million, while adjusted EBITDA dropped by 43% to $59 million. Despite these challenges, Telesat achieved notable milestones, including a Lightspeed backlog exceeding $1 billion and a strategic agreement with Viasat Inc. The company maintained its 2025 guidance, projecting revenues between $405 million and $425 million and adjusted EBITDA between $170 million and $190 million.

The revenue decline was primarily attributed to lower renewal rates with North American direct-to-home TV customers, reduced services for Indonesian rural broadband 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 the prior year. The company's net income for the quarter was $76 million, down from $129 million in the same period in 2024.

Telesat's President and CEO, Dan Goldberg, expressed satisfaction with the company's progress on the Telesat Lightspeed program, noting that the backlog stands at over $1 billion. The company remains focused on expanding its backlog in enterprise, aviation, maritime, and government segments. For the six-month period ended June 30, 2025, Telesat reported consolidated revenue of $223 million, a decrease of 27% compared to the same period in 2024. Adjusted EBITDA for the six-month period was $126 million, a decrease of 41%.

Telesat's 2025 capital expenditures are expected to range between $900 million and $1.1 billion. The company's strategic agreement with Viasat Inc. is seen as a significant step forward in its efforts to expand its market reach and enhance its competitive position. Telesat's Lightspeed program is anticipated to redefine global satellite connectivity with its state-of-the-art Low Earth Orbit (LEO) satellite network.

Despite the quarterly challenges, Telesat's forward-looking statements and strategic initiatives suggest a promising outlook for the remainder of the year. The company's ability to maintain its 2025 guidance, despite the revenue and EBITDA declines, is a testament to its disciplined execution and focus on long-term growth opportunities.

References
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX465567:0-telesat-q2-revenue-falls-30-adjusted-ebitda-down-43/
[2] https://www.stocktitan.net/news/TSAT/telesat-reports-results-for-the-quarter-and-six-months-ended-june-30-k5qusm9h97x4.html