Telesat Corporation

What they do

Telesat provides satellite-based telecommunications services, including broadband data, video, and government communications, primarily through its fleet of geostationary (GEO) satellites. The company also provides satellite fleet management, ground network operations, and consulting services. Its principal operating subsidiary is Telesat Canada, and it is developing Telesat Lightspeed, a low-earth-orbit (LEO) broadband network.

Revenue drivers

• Broadband Services — Provides satellite broadband services to enterprise, government, and carrier customers, generating recurring revenue from long-term contracts.
• Video Services — Distributes video content via satellite to broadcasters and content providers, contributing a significant portion of total revenue.
• Government Services — Serves national defense and other government agencies with secure satellite communications, a stable and growing revenue stream.
• Consulting and Other Services — Generates revenue from engineering, operations, and consulting services, though this is a smaller contributor relative to core satellite services.

Recent performance

For the fiscal year ended December 31, 2025, Telesat reported revenue of approximately $580 million, down from $600 million in the prior year. Net income was $120 million, compared to a net loss of $150 million in 2024, driven by lower operating expenses and a favorable tax item. Adjusted EBITDA was approximately $400 million, maintaining a healthy margin. The decline in revenue was primarily due to non-renewal of certain video contracts, partially offset by growth in broadband services.

Strategy

Telesat's stated strategy centers on the construction and launch of its Telesat Lightspeed LEO network, targeting enterprise and government customers with low-latency, high-throughput broadband. Management is prioritizing investment in Lightspeed, with planned launches expected to begin in 2026. The company also continues to optimize its GEO fleet, reduce costs, and seek multi-year contracts to stabilize revenue. Telesat is actively managing its balance sheet to fund the Lightspeed build-out.

Risks

• Lightspeed execution risk — The LEO constellation is a large, capital-intensive project with significant launch, technology, and schedule risks, including potential delays and cost overruns.
• Customer concentration — A limited number of customers, particularly in video distribution, account for a large share of revenue; loss of any major customer could materially impact results.
• Competition from LEO operators — Other LEO constellations, such as Starlink and OneWeb, present competitive pressure on pricing and market share in broadband services.
• Funding and liquidity risk — The company may need additional capital or refinancing to complete Lightspeed, and there is no guarantee of access to affordable financing.

Outlook

Management expects revenue to remain under modest pressure in the near term due to video contract churn, but anticipates growth in broadband and government services to offset this. The company reaffirmed its commitment to the Lightspeed program, with the first satellite launches slated for 2026 and commercial service expected to begin in 2027. Cost discipline and debt management remain key priorities as the company funds its LEO build-out.