Telesat (TSAT) Shares Soar 6.08% on Vocus Partnership, Q2 Earnings

Telesat (TSAT) shares rose to their highest level since January 2022 today, with an intraday gain of 6.08%.

The strategy of buying TSAT shares after they reached a recent high and holding for 1 week yielded moderate returns over the past five years, with an average annual return of 6.5%. While this is below the S&P 500's average return over the same period, it still represents decent income, especially in comparison to the broader market's returns. The maximum drawdown during this period was 15.4%, which is relatively low given the volatility of the broader market. This suggests that this strategy, though not risk-free, could be a reasonable approach for investors looking for steady returns with lower risk.

Telesat has recently secured a significant multi-year contract with Vocus, Australia's leading digital infrastructure provider. This agreement involves the deployment of Telesat Lightspeed's terrestrial infrastructure and services, with Vocus set to build and operate Australia's first Telesat Lightspeed Low Earth Orbit (LEO) Landing Station. This strategic partnership is poised to bolster Telesat's global satellite service capabilities, potentially driving investor confidence and stock performance.

In addition to this strategic partnership, Telesat released its financial results for the second quarter of 2025. The company reported revenue of 81.19 million USD, marking a year-over-year decrease of 27.76%. Net income stood at -35.79 million USD, reflecting a year-over-year change of 7.42%. These financial metrics are crucial for investors as they assess the company's operational efficiency and financial health, which in turn can influence TSAT's stock price.