Telesat Posts C$157 Million Loss Despite Beating Adjusted EPS Expectations
Key Facts
Telesat reported a net loss of C$157 million in the third quarter of 2026, compared with a loss of C$121 million in the same period a year earlier, while consolidated revenue fell 20% to C$81 million. In results published on October 29, the company said the wider loss was mainly tied to lower adjusted EBITDA and a larger fair-value loss on Lightspeed financing warrants. The net result contrasted with the impression that could be created by adjusted earnings per share of C$1, as that figure does not represent the company’s net income. Official statements showed a basic and diluted loss of C$3.09 per share, compared with C$2.38 in the third quarter of 2025. TSAT shares closed at C$45.55 on October 28, according to EL7 data.
Adjusted EBITDA for the quarter fell 74% to C$12 million, down C$35 million from the year-earlier period. Telesat said the decline was 41% after excluding the effect of higher refinancing expenses, which affected the operating comparison. In the GEO segment, revenue fell 21% to C$79 million, a decline of C$22 million. The company attributed this to a non-renewed broadcasting contract, reduced contracted capacity with a broadcasting customer, and reduced service to a North American broadband customer. The retirement of some geostationary satellites also weighed on revenue.
GEO segment adjusted EBITDA included C$25 million in refinancing expenses during the quarter. Excluding these expenses, the adjusted EBITDA margin was 78%, compared with 79% in the same quarter of 2025. For the nine months ended September 30, consolidated revenue fell 24% to C$247 million, while adjusted EBITDA declined 60% to C$69 million. The net loss for the period widened to C$867 million from C$97 million a year earlier. The company attributed the nine-month decline to the fair-value loss on Lightspeed warrants, a GEO goodwill impairment, lower adjusted EBITDA and a foreign-exchange loss. The loss from changes in the fair value of financial instruments was C$577.256 million, compared with C$109.780 million in the year-earlier period.
Telesat continues to invest in the Lightspeed program, with investment totaling C$368 million during the quarter, including C$24 million in operating expenses and C$344 million in capital expenditures. In August, the company announced a C$2.7 billion agreement with the Canadian Defence Investment Agency to provide military services through Lightspeed to the Canadian Armed Forces using Ka-band. The agreement runs for 15 years, including option periods, with service to begin when the network enters commercial operation. It includes milestone payments totaling C$2.0 billion, which the company expects to receive between the third quarter of 2026 and the fourth quarter of 2028. Those payments will fund the planned expansion of the constellation from 156 to 225 satellites.
The order backlog stood at about C$779 million in GEO and about C$5.6 billion in LEO at September 30, while GEO satellite utilization was about 59%. The company maintained its 2026 GEO revenue guidance at C$300 million to C$320 million and adjusted EBITDA at C$210 million to C$230 million, excluding non-recurring refinancing costs. But it cut its Lightspeed spending outlook to C$1.1–1.3 billion from C$1.3–1.5 billion in its second-quarter guidance. Chief Executive Dan Goldberg said the program was “fully funded” and that the start of commercial service at high latitudes was expected near the end of the first quarter of 2028. He added that the company was focused on refinancing GEO debt that begins maturing later in the year, and that its advisers continued to engage with creditors and assess other alternatives. Goldberg described the government agreement as “the first step” among government and defense opportunities with Canada and allied countries that the company is seeking to convert into contracted orders.