TSAT Narrows Losses, Delays LEO Launch Amid $1B Investment Push

Telesat (TSAT) reported fiscal 2025 Q4 earnings on March 17, 2026, with results reflecting a narrowing of losses and progress in its LEO initiatives. The company exceeded adjusted EBITDA guidance for 2025 and outlined a 3-month delay in LEO commercial service to Q1 2028 due to ASIC chip readiness. Guidance for 2026 included reduced GEO revenue expectations and significant Lightspeed investments.

Revenue

The total revenue of Telesat decreased by 26.5% to $94.04 million in 2025 Q4, down from $128 million in 2024 Q4.

Earnings/Net Income

Telesat narrowed losses to $8.48 per share in 2025 Q4 from $8.90 per share in 2024 Q4, a 4.7% improvement. The company also reduced its net loss to $-433.21 million in 2025 Q4, a 3.1% reduction compared to the $-447.23 million net loss in 2024 Q4. The 4.7% EPS improvement and 3.1% reduction in net loss indicate progress in cost optimization, though losses persist.

Price Action

The stock price of Telesat surged 23.15% during the latest trading day, 21.67% during the most recent full trading week, and 60.62% month-to-date, reflecting strong post-earnings momentum.

Post-Earnings Price Action Review

Telesat’s stock has demonstrated robust post-earnings performance, with a 60.62% monthly gain and a 23.15% single-day surge. The upward trajectory accelerated through the week, highlighting investor confidence in the company’s LEO advancements and guidance clarity. While the 3-month delay in LEO commercial service may introduce near-term uncertainty, the overall market reaction underscores optimism about long-term growth prospects.

CEO Commentary

Daniel Goldberg emphasized progress in optimizing GEO cash flow and accelerating LEO development, noting Lightspeed’s milestones in satellite and user terminal progress. He acknowledged the 3-month delay in full commercial service due to ASIC chip readiness but expressed confidence in MDA’s support. Goldberg highlighted growing demand in defense and sovereignty, with new Mil-Ka spectrum integration enhancing resilience, and outlined robust pipelines for U.S. Shield and Canada’s ESCaPE projects.

Guidance

For 2026, Telesat expects GEO revenue of $300–$320 million and adjusted EBITDA of $210–$220 million. LEO investments are projected at $1–$1.2 billion, with $90–$110 million in OpEx. The company confirmed $510 million in 2025 cash and $337 million in LEO liquidity, sufficient to fund operations until global commercial service. Debt refinancing of $1.7 billion in Telesat Canada debt is expected before 2026 maturities, with all covenants currently met.

Additional News

Telesat’s Q4 earnings call highlighted strategic M&A activity, including MDA’s acquisition of SatixFy, which is critical to Lightspeed’s ASIC development. The company reiterated confidence in its leadership team, with Daniel Goldberg and Donald Tremblay reaffirming focus on LEO growth. No dividend or buyback announcements were made, as resources remain allocated to Lightspeed’s development and debt refinancing.