SES S.A. Reports FY25 Results: Intelsat Integration Boosts Reported Revenue, But Like-for-Like Profitability Declines Amid Higher Leverage

summarizeSummary

SES S.A. reported full-year 2025 results, showing significant reported revenue growth driven by the Intelsat acquisition, but like-for-like revenue and Adjusted EBITDA declined, and net leverage increased to 3.9 times. The company expects stable like-for-like revenue and Adjusted EBITDA in 2026 with lower capital expenditures.

check_boxKey Events

• FY25 Financial Performance

  Reported revenue increased by 33.9% to €2,627 million and Adjusted EBITDA by 19.1% to €1,196 million (at constant FX), primarily due to the Intelsat acquisition. However, on a like-for-like basis, revenue declined by 1.6% to €3,512 million and Adjusted EBITDA by 12.1% to €1,529 million. Adjusted Net Profit fell to €47 million from €126 million in 2024, and Adjusted Free Cash Flow decreased to €229 million from €253 million.

• Intelsat Acquisition Impact

  The Intelsat acquisition closed on July 17, 2025, driving reported growth. The CEO noted that financial performance was below initial expectations for the first year of the combined company, but within the revised 2025 financial outlook, with solid progress on integration and synergy delivery.

• Increased Net Leverage

  The Adjusted Net Debt to Adjusted EBITDA ratio rose significantly to 3.9 times as of December 31, 2025, up from 1.1 times in 2024, exceeding the company's target of 3.0 times or below. This reflects the increased debt burden from the Intelsat acquisition.

• 2026 Financial Outlook

  For 2026, SES S.A. expects both Revenue and Adjusted EBITDA to be stable year-on-year on a like-for-like and constant FX basis. Capital expenditures are projected to be around €700 million, approximately €100 million lower than prior guidance.

auto_awesomeAnalysis

SES S.A.'s full-year 2025 results present a mixed picture, with reported revenue and Adjusted EBITDA showing significant growth due to the consolidation of Intelsat from July 2025. However, on a like-for-like basis (as if Intelsat was consolidated from January 2024), both revenue and Adjusted EBITDA declined, indicating underlying challenges in the combined entity's profitability. The company's net leverage ratio increased substantially to 3.9 times, exceeding its target of 3.0 times or below, raising concerns about its financial health post-acquisition. While the CEO acknowledged performance was below initial expectations, the company delivered within its revised outlook and expects stable like-for-like revenue and Adjusted EBITDA in 2026, coupled with a reduction in capital expenditure guidance. Investors should monitor the company's progress on synergy delivery and debt reduction efforts.