SES reported a transformative year in its Q4 2025 earnings call held on March 2, 2026, as the satellite operator accelerates integration of Intelsat and advances its next-generation meoSphere MEO network. Operating in what executives described as an increasingly contested and defense-focused space domain, SES is repositioning itself around multi-orbit connectivity, sovereign capabilities, and higher-margin government services.
Revenue Surges on Intelsat Consolidation
For the full year ended December 31, 2025, SES delivered reported revenue of €2.6 billion, reflecting 33.9 percent growth. The increase was largely driven by the consolidation of Intelsat’s assets beginning July 17, 2025, following the $3.1 billion acquisition.
However, on a like-for-like basis – assuming the transaction had closed on January 1, 2024 – revenue declined 1.6 percent at constant exchange rates, highlighting continued structural pressure in legacy segments.
Adjusted EBITDA reached €1.2 billion on a reported basis, with a margin of 45.4 percent. On a like-for-like basis, EBITDA declined 12.1 percent due to initial margin dilution from high-volume electronically steered antenna installations in aviation and third-party capacity costs related to the IS-33e satellite anomaly.
Networks Segment Becomes Core Growth Engine
SES’ Networks division now accounts for approximately 60 percent of total revenue, offsetting declines in the Media business.
Like-for-like divisional performance:
Aviation: €382 million, up 29.0 percent. SES delivered more than 450 electronically steered antennas, with over 600 additional installations pending. The company now supports around 3,000 aircraft tails, strengthening its in-flight connectivity footprint.
Government: €726 million, up 17.3 percent. Growth was supported by rising demand from European and global governments, including programs such as IRIS2. In the United States, demand for secure multi-orbit solutions increased despite temporary budget delays and contract rationalization efforts.
Fixed and Maritime: €530 million, down 15.0 percent amid competitive pressure in fixed data markets. Maritime performance remained resilient, supported by cruise renewals.
Media: €977 million, down 12.6 percent due to the structural decline in linear television and the impact of a major customer bankruptcy in Brazil.
Regional Performance Highlights
Brazil’s revenue was significantly affected by a Media customer bankruptcy, underscoring structural challenges in traditional broadcasting markets.
In the United States, the Government segment experienced headwinds from federal budget delays early in 2025. Nevertheless, demand for resilient, secure, multi-orbit satellite solutions continues to grow, particularly for defense and space relay applications.
Europe is witnessing accelerating government investment in sovereign space infrastructure amid geopolitical tensions, with IRIS2 emerging as a strategic growth platform for SES.
Capex, Leverage and Financial Position
SES is transitioning from a heavy investment cycle toward deleveraging and operational optimization as it prepares to expand its meoSphere constellation.
Capital Expenditure: €559 million in 2025, below prior guidance of €600 to €700 million.
2026 Capex Outlook: Approximately €700 million as satellites 11 to 13 are scheduled for launch in the second half of the year.
Net Debt to EBITDA: 3.9x at year-end 2025 on a like-for-like adjusted basis, with a long-term target of 3.0x or below.
Liquidity: €674 million in cash and equivalents, excluding €401 million in restricted cash for IRIS2.
Debt Maturity: €1.3 billion due in 2026, including €525 million in hybrid notes.
Total gross backlog stands at €6.6 billion, split between €3.0 billion in Media and €3.6 billion in Networks, providing medium-term revenue visibility.
Strategic Shift Toward Multi-Mission Defense Platforms
SES is intensifying its focus on vertical integration and multi-mission satellite capabilities, including missile tracking and space relay services, targeting higher-margin defense budgets. The company expects to realize €400 million in transformation and efficiency benefits to offset inflationary pressures and integration costs.
As global 5G adoption expands and hybrid satellite-terrestrial architectures gain traction, SES aims to position meoSphere as a foundational layer for secure, sovereign, multi-orbit connectivity.
Management expects Media trends to gradually stabilize, while Aviation and Government remain primary growth engines in 2026 and beyond. With integration synergies accelerating and new MEO capacity coming online, SES is shifting from capital-intensive expansion toward sustainable cash flow generation and investment-grade balance sheet metrics.
FASNA SHABEER