Canada's Telesat Q3 revenue falls 20%, but beats estimates

Overview

• Canada satellite operator's Q3 revenue fell 20% yr/yr but remained above analysts' expectations

• Adjusted EBITDA dropped 74% yr/yr, impacted by debt refinancing expenses

• Company signed C$2.7 bln contract with Canadian government for Lightspeed program

Outlook

• Telesat reiterates 2026 GEO revenue guidance of C$300 mln to C$320 mln

• Company expects 2026 GEO adj EBITDA of C$210 mln to C$230 mln, excluding debt refinancing costs

• Telesat lowers 2026 Lightspeed program spending forecast to C$1.1 bln–C$1.3 bln from C$1.3 bln–C$1.5 bln

Result Drivers

• CONTRACT NON-RENEWALS - Co said lower GEO revenue was mainly due to non-renewal of broadcast contracts, reduced capacity for broadcast and broadband customers, and removal from service of some GEO satellites

• DEBT REFINANCING COSTS - Co said higher expenses related to debt refinancing weighed on adjusted EBITDA

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)