Telesat Reports 27% Revenue Drop Amid GEO Decline, Bets on Lightspeed for Defense Growth
Event summary
- Telesat reported a 27% year-over-year revenue decline to $418M in 2025, driven by drops in North American DTH and rural broadband enterprise segments.
- Operating expenses rose 2% to $212M, while Adjusted EBITDA fell 45% to $213M due to revenue declines.
- Telesat invested $777M in its LEO constellation Telesat Lightspeed, with $1.85B remaining in its financing facility.
- The company added Military Ka-band (Mil-Ka) capacity to 156 Lightspeed satellites to meet growing defense demand.
- GEO satellite utilization stood at 59% at year-end, with backlog at $800M and LEO backlog at $1.0B.
The big picture
Telesat's financial results reflect the ongoing challenges in its legacy GEO business, compounded by broader industry pressures in broadcast and rural broadband segments. The strategic pivot to Telesat Lightspeed, particularly its defense applications, aligns with a global surge in military satellite connectivity needs. Success hinges on executing the LEO deployment while managing significant debt obligations and maintaining customer momentum in a competitive LEO satellite market.
What we're watching
- Defense Demand
- Whether Telesat can sustain its defense growth momentum amid rising NATO and allied government investments in secure satellite connectivity.
- Debt Refinancing
- The pace at which Telesat completes refinancing of its $2.1B debt maturing between late 2026 and October 2027.
- LEO Deployment
- How the addition of Mil-Ka capacity impacts the overall Telesat Lightspeed schedule and operational integration.
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