Telesat Q2 Revenue Misses, Loss Widens to C$559M; Lightspeed Spending Raised
TSAT has more than doubled off its 52-week low of $19.59.
Summary
Telesat's Q2 revenue fell 25% year-over-year to C$79M, slightly below the C$79.77M consensus, while adjusted EBITDA dropped 62% on GEO weakness and higher refinancing costs. The company posted a C$559M net loss, or C$10.89 per share, and disclosed going concern doubt and a material weakness in internal controls in its 6-K filed today. Despite the weak quarter, Telesat signed a C$2.7B contract with the Canadian government to expand its Lightspeed LEO constellation to 225 satellites and raised its 2026 Lightspeed spending forecast to C$1.3B–C$1.5B from C$1.0B–C$1.2B. The stock trades near its 52-week high, suggesting the market has been pricing in the Lightspeed opportunity, but the earnings miss and control weaknesses introduce near-term risk. Watch for management's commentary on the refinancing process and whether the raised spending guidance pressures liquidity.
At the time of this announcement, TSAT was trading at $60.72 on NASDAQ in the Technology sector, with a market capitalization of approximately $934.5M. The 52-week trading range was $19.59 to $61.54. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.