SES's New Empire: Growth Soars, Profits Dip After Intelsat Merger

LUXEMBOURG – March 02, 2026 – Satellite operator SES S.A. today unveiled a financial portrait of a company transformed, revealing the massive scale and complex realities of its landmark acquisition of Intelsat. The full-year 2025 results, the first to partially consolidate the American rival, showcased a dramatic 33.9% surge in reported revenue, while also laying bare the significant costs of ambition, including a sharp rise in debt and a steep decline in profitability.

In what CEO Adel Al-Saleh described as a "milestone year," SES closed the Intelsat deal on July 17, 2025, forging a new titan in the space and connectivity industry. The move created a global powerhouse with an expanded multi-orbit fleet designed to compete in an era of rapid technological change. However, the financial results underscore the immense task ahead: integrating a fellow giant while navigating the heavy financial gravity of such a monumental transaction.

A Titan Forged in Space

The acquisition has fundamentally reshaped SES, creating a stronger, truly global operator with an expanded fleet of approximately 120 satellites across Geostationary (GEO) and Medium Earth (MEO) orbits, plus strategic access to Low Earth Orbit (LEO) capacity. This multi-orbit architecture is the company's strategic answer to intense competition from new players like Starlink and consolidated rivals such as the Viasat-Inmarsat and Eutelsat-OneWeb combines.

The strategic rationale was clear: merge complementary capabilities to offer integrated, resilient connectivity solutions across government, aviation, maritime, and media markets. According to the company, integration and synergy delivery were "fast-tracked from Day 1," with SES making "solid progress" in uniting the two formerly separate entities. The company is targeting significant annual synergies and has already begun streamlining operations to achieve them. In his comments, Al-Saleh emphasized the plan to "accelerate integration, execute on synergies, grow in key markets, and continue innovating" in 2026, signaling a year of intense internal focus.

Navigating Financial Gravity

While the Intelsat consolidation propelled reported revenue to €2.63 billion, a closer look at the underlying numbers reveals a more complex picture. On a like-for-like basis, as if Intelsat had been part of SES for all of 2024 and 2025, combined revenue actually dipped by 1.6%. More strikingly, like-for-like Adjusted EBITDA fell 12.1%, indicating pressure on margins.

The most significant impact was on the bottom line. Adjusted Net Profit plummeted to just €47 million for 2025, a stark drop from €126 million the previous year. The company reported an overall net loss of €95 million, driven by €170 million in increased depreciation and amortization from the acquisition, alongside higher financing costs and merger-related expenses.

This financial strain is most evident on the balance sheet. The company's key leverage ratio—Adjusted Net Debt to like-for-like Adjusted EBITDA—jumped to 3.9 times. In response, SES stressed its commitment to a "disciplined financial policy," reaffirming its target to bring the ratio down to 3.0 times or below. To enforce this discipline, the Board has established a dedicated CapEx taskforce to ensure prudent capital allocation. This is reflected in a reduced capital expenditure forecast for 2026, now projected at around €700 million, approximately €100 million lower than prior guidance.

Engines of Growth: Aviation and Government

Despite the integration headwinds and financial pressures, SES's operational performance in key growth markets provides a powerful counter-narrative. The Networks division, which now accounts for 62% of revenue, posted its fourth consecutive year of growth, largely fueled by booming demand in Aviation and Government.

The Aviation segment was a standout performer, with reported revenue soaring 145.5%. The company's multi-orbit in-flight connectivity solution is now operational on over 500 aircraft, with a backlog for more than 1,000 additional planes from 16 carriers, including major names like American Airlines, Air Canada, and JAL. This momentum reflects what Al-Saleh called "the market’s confidence in SES and the unique value of our scalable, multi‑orbit architecture."

Similarly, the Government business saw robust growth of 47.0% on a reported basis, driven by global demand for secure and resilient communications. SES highlighted major contract wins with the U.S. Space Force (PTS-G) and the Defense Innovation Unit (SIMON), alongside progress on sovereign European programs like IRIS² and GovSat-2. These wins underscore the strategic importance of the combined company's enhanced capabilities in serving mission-critical government needs.

In contrast, the Fixed Data business continued to face "competitive pressures," prompting what the company called "decisive actions to transform the business." The Media division, while facing headwinds from market maturity, remains a strong cash generator, securing around €450 million in renewals with major broadcasters like Sky, RTL, and Warner Brothers Discovery.

Charting the Future with Multi-Orbit Tech

Looking ahead, SES is betting heavily on its technological leadership and multi-orbit strategy to drive future value. The expansion of its O3b mPOWER MEO constellation is a critical component of this plan. Satellites 7 through 10 are now in service, with three more scheduled to launch in the second half of 2026. This system is central to delivering high-performance, low-latency connectivity for its booming Aviation and Government segments.

Beyond O3b mPOWER, the company is developing its next-generation MEO network, meoSphere, in collaboration with New Space innovators like Kratos and K2 Space. This forward-looking investment is designed to maintain the company's competitive edge in an industry defined by constant innovation.

For 2026, SES projects a period of stability, with both revenue and Adjusted EBITDA expected to remain flat year-on-year on a like-for-like basis. This forecast, combined with reduced capital spending and a sharp focus on integration, paints a picture of a new industry giant taking a breath to digest its massive acquisition, solidify its finances, and position its powerful new platform for long-term leadership in the next era of global connectivity.