Telesat Corp SEC Filings

Telesat Corporation reported significantly weaker results for the three and six months ended June 30, 2026, while securing major long-term contracts for its LEO program. Quarterly revenue was $79.5 million, down 25% year over year, and adjusted EBITDA fell 62% to $22.1 million, cutting the adjusted EBITDA margin to 27.8%. For the first half of 2026, revenue declined 25% to $166.6 million and adjusted EBITDA decreased 55% to $57.2 million.

The company posted a large net loss of $558.6 million for the quarter and $709.5 million for the first half, versus gains in 2025, driven mainly by non‑cash losses from a higher fair value of Telesat Lightspeed Financing Warrants, foreign exchange losses on U.S. dollar debt, and a GEO goodwill impairment. GEO revenue fell 26% for both the quarter and year‑to‑date due to broadcast non‑renewals and fixed broadband reductions, partly offset by aviation contracts. GEO adjusted EBITDA margin remained relatively high at 73% for the first half, excluding refinancing costs.

Strategically, Telesat signed a $2.7 billion ESCP‑P contract with the Government of Canada, expanded the Telesat Lightspeed constellation plan to 225 satellites, and reported GEO backlog of ~$900 million and LEO backlog of ~$1.1 billion, or $5.6 billion pro forma for the new contract. Cash stood at $383.2 million with substantial indebtedness as the company invests heavily in Lightspeed.

Telesat Corporation reported sharply weaker results for the three and six months ended June 30, 2026. Revenue declined to $79.5M for the quarter and $166.6M year‑to‑date, down from $106.1M and $222.9M in 2025. The company posted a quarterly net loss of $558.6M and a six‑month net loss of $709.5M, compared with profits of $75.5M and $24.1M a year earlier. Results were heavily impacted by a $487.7M loss on change in fair value of financial instruments, an $84.5M impairment, and a $37.2M foreign‑exchange loss.

Cash and cash equivalents fell from $509.8M at year‑end 2025 to $383.2M, after negative operating cash flow of $71.9M and capital expenditures of $299.1M, largely for the Telesat Lightspeed LEO constellation. About $2.7B of Telesat GEO debt maturing between December 2026 and October 2027 has been reclassified as current. Management discloses a material uncertainty related to refinancing this debt that raises substantial doubt about the company’s ability to continue as a going concern if not successfully addressed.

Telesat Corporation announced a $2.3 billion Telesat Lightspeed services contract with Canada’s Defence Investment Agency to deliver secure Military Ka-band (Mil-Ka) Arctic connectivity to the Canadian Armed Forces under the Enhanced Satellite Communications Project – Polar program. The agreement covers 15 years of service, including two five-year option periods valued at about $200 million each, bringing total contract value to $2.7 billion, with service beginning in 2028.

Described as the largest contract in Telesat’s history, the deal allows an immediate expansion of the Telesat Lightspeed constellation by 69 fully funded satellites, increasing the network from 156 to 225 satellites and boosting capacity by 44%. The additional satellites will be built by MDA Space and launched on SpaceX Falcon 9 rockets, with the expansion funded through milestone-based payments from the Government of Canada starting in Q3 2026. Telesat’s total expected investment in the 225-satellite network is approximately $7 billion, with $2.7 billion invested to date.

Mil-Ka services will cover Canada’s Arctic region between 65 and 90 degrees North, and Telesat will also act as overall systems integrator for Mil-Ka, UHF and X-band networks under the broader ESCP-P program, positioning Telesat Lightspeed to support NATO members and other allied partners.

Telesat Corporation announced a change to its Board of Directors. Ralph (Cody) Kittle, a nominee of MHR Fund Management, has been appointed to the board, succeeding long-time director and prior MHR nominee Michael Targoff.

Kittle is the Founder and CEO of private equity firm RenWave Kore, which manages more than $1.5 billion in assets. He previously worked as a portfolio manager at Elliott Management and has served on multiple corporate boards. He also sits on the board of Freddie Mac, where he chairs the Audit Committee.

MHR Fund Management and affiliated entities have updated their disclosure of large holdings in Telesat Corporation’s Class B Variable Voting Shares through Amendment No. 2 to their Schedule 13D. Based on 51,003,269 Issuer Voting Securities outstanding, MHR Fund Management may be deemed to beneficially own 18,035,092 Class B Shares, representing 35.4% of this class, while Mark H. Rachesky, M.D. may be deemed to beneficially own 18,096,228 Class B Shares, or 35.5%.

The amendment reflects a continuation vehicle transaction completed on July 8, 2026, in which Institutional Partners II, Institutional Partners IIA and Institutional Partners III transferred Class B Units to newly formed vehicles SAT Holdco A, SAT SubHoldco A, SAT Holdco B and SAT SubHoldco B, and to MHR Sun II, MHR Sun IIA and MHR Sun III, depending on whether limited partners chose cash or rollover options. These new vehicles are managed by MHR Fund Management and ultimately controlled by entities associated with Dr. Rachesky and funded in part by RenWave Kore–affiliated funds and MHR Sun Holdings.

A side letter gives the Lead Investor the right to identify one Telesat director candidate for designation under the existing Investor Rights Agreement and establishes liquidity protections, including a Minimum Liquidity Threshold requiring proceeds to the Lead Investor of 125% of its capital contributions, with rights to trigger sales or wind-down steps if that threshold or later realization milestones are not met. The filing also notes that Institutional Partners IIA and Institutional Partners III each ceased to be beneficial owners of more than five percent of the Class B Shares as of July 8, 2026.

Telesat Corporation filed a Form 6-K describing an agreement in principle between its subsidiary Telesat LEO ULC and Canada’s Defence Investment Agency. The deal would provide secure Military Ka-band connectivity across Canada’s Arctic for the Enhanced Satellite Communications Project – Polar (ESCP-P) program.

The planned solution includes Mil-Ka coverage from 65 to 90 degrees North latitude plus end-to-end services such as user terminals, ground and control infrastructure, training, and support. The agreement remains subject to execution of a definitive contract in the coming weeks. Telesat states that this agreement and the anticipated contract will not change the planned Telesat Lightspeed global service launch in Q1 2028.

Telesat Corporation reported the results of its 2026 annual general meeting, held virtually on June 3. Shareholders voted in favour of all items of business, re-electing all ten director nominees with strong support and approving the appointment of Deloitte LLP as auditor, with 49,493,437 votes for and 81,972 votes against or withheld.

Telesat Corp ownership update: Heard Capital LLC and William Heard report beneficial ownership of 610,570 Class B Variable Voting Shares, representing 4.16% of the combined Class A and Class B shares. The percentage is calculated on March 31, 2026 using an aggregate outstanding total of 14,666,890 shares.

The shares are held in the name of Heard High Conviction Long Only Fund LLC and separate managed accounts for which Heard Capital serves as investment manager with shared voting and dispositive power.

Telesat reported a much weaker first quarter of 2026 as it invests heavily in its Lightspeed LEO network while its GEO business faces revenue pressure. Consolidated revenue fell to $87.1 million from $116.7 million, and Adjusted EBITDA dropped to $35.1 million with margin sliding to 40.4% from 57.7%.

The company posted a net loss of $150.9 million versus a $51.5 million loss a year earlier, mainly from lower GEO revenue and a non‑cash goodwill impairment in the GEO segment. GEO revenue declined 26% to $86 million, while GEO Adjusted EBITDA fell 37% to $53 million.

Telesat invested $171 million in the Lightspeed program in the quarter and has spent about $2.7 billion cumulatively. As of March 31, 2026, GEO backlog was about $800 million and LEO backlog about $1.1 billion. Management reaffirmed 2026 GEO revenue and Adjusted EBITDA guidance and still expects Lightspeed to begin global commercial service around the end of Q1 2028.