SES Revenue Reaches €870 Million, Beating Expectations, With Adjusted Earnings of €413 Million
Key Facts
SES reported revenue of €870 million and adjusted earnings before interest, taxes, depreciation and amortization of €413 million in the third quarter of 2026, exceeding the average estimates of analysts surveyed by the company, according to data reported by Reuters via Euronext. Analysts had expected revenue of €832 million and adjusted earnings of €367 million. Reuters said strong demand from defense customers and growth in mobility helped support the results. On a like-for-like, constant-currency basis, quarterly revenue rose 4.2% year over year, while adjusted earnings increased 18.6%. The wider increase in adjusted earnings than in revenue stands out in a quarter when results exceeded expectations.
SES attributed the quarter’s improvement to strong momentum in mobility, including a positive impact from a contract restructuring, strong performance in government and defense, and a recovery in media trends. The company reported sequential improvement in fixed data activity in the third quarter compared with the second quarter, despite continued challenges in the business. Over the first nine months of 2026, revenue declined 2% on a like-for-like, constant-currency basis compared with the same period in 2025, while adjusted earnings rose 1.4%. The company said the nine-month performance reflected good execution and supported its confidence in the financial outlook it reaffirmed. It also said the integration of Intelsat was progressing well and synergies were on track, with a focus on cost control and capital allocation discipline.
SES signed €5.8 billion in new business and contract renewals from the start of 2026 through November 5, including a €3.4 billion contribution from IRIS², lifting its backlog to €10 billion. The company said long-term renewals with Canal+ and Sky totaled €900 million, and new business included contracts extending beyond the next decade. In aviation, it said it had won more than 250 new aircraft since the start of the year, and nearly 650 aircraft were using its multi-orbit electronically steered antenna solution. These contracts and orders position mobility among the growth drivers cited by the company, while the IRIS² contribution accounts for part of the value of announced new business and renewals. The company reported net leverage of 3.7 times as of September 30, with cash and cash equivalents of €1.26 billion.
SES reaffirmed its 2026 outlook for revenue and adjusted earnings to remain stable year over year on a like-for-like, constant-currency basis. At the same time, it lowered its capital expenditure estimate to about €600 million for the financial year, from €700 million previously. The company defines this expenditure as net cash used in investing activities, excluding acquisitions, financial investments and C-band scope. Reuters said the company reaffirmed its annual outlook for stable growth in revenue and core earnings. The company is scheduled to host a Capital Markets Day alongside the release of its 2026 full-year results on March 11, 2027.
On operations, SES launched the final three O3b mPOWER satellites on September 13, 2026, and expects them to enter service by mid-2027, strengthening the performance, resilience and reach of its medium Earth orbit network. In the upper C-band, a clearinghouse is due to be selected by the end of 2026, with the expected auction to be completed by July 2027. The company has also begun construction of a satellite manufacturing facility in Luxembourg, which it expects to complete in the first half of 2028 to support IRIS² and meoSphere. At its Capital Markets Day on March 11, 2027, SES expects to provide updates on its medium-term financial targets, long-term ambitions, capital allocation policy and deleveraging path. SES expects to pay a final dividend for 2026 in May 2027, subject to shareholder approval.