Telesat Corporation (TSAT) posts $709M loss but lands $2.7B Lightspeed deal

Rhea-AI Filing Summary

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.

Positive

• $2.7 billion ESCP-P contract with the Government of Canada materially strengthens LEO revenue visibility and supports the expanded Telesat Lightspeed constellation to 225 satellites.
• Total LEO backlog is ~$1.1 billion, rising to $5.6 billion pro forma for the ESCP-P contract, providing multi‑year demand visibility for the Lightspeed network.
• Telesat expects to receive US$189 million in incentive payments under the FCC Upper C-Band Report and Order, adding a meaningful prospective cash inflow.

Negative

• Quarterly revenue declined 25% to $79.5 million and adjusted EBITDA fell 62% to $22.1 million, sharply reducing the adjusted EBITDA margin to 27.8% from 55.3%.
• Net results swung from a $75.5 million gain to a $558.6 million loss in the quarter, and from a $24.1 million gain to a $709.5 million loss year‑to‑date, including a $84.5 million impairment and large non‑cash fair value and FX losses.
• GEO segment revenue fell 26% for both the quarter and first half, with satellite utilization at 60% and pressure from non‑renewals of broadcast contracts.
• Operating activities used $71.9 million of cash in the first half while the company invested $337 million into Telesat Lightspeed, contributing to higher leverage with current indebtedness at $2.74 billion and long‑term indebtedness at $1.05 billion.

Filing Explained

Cash was $383,241 thousand on June 30, while current liabilities were $4,192,257 thousand and GEO debt starts maturing later this year.

The company reports completed results for the six months ended June 30, 2026, and says it invested $165 million in Telesat Lightspeed during the second quarter and $337 million during the first half, increasing near-term cash deployment for the constellation.

It also reports a US$120 million borrowing at a Telesat GEO subsidiary for general corporate purposes, while working toward refinancing GEO debt that starts to mature later this year.

Cash and cash equivalents were $383,241 thousand at June 30, 2026, compared with $509,798 thousand at December 31, 2025; six-month operating cash flow was negative $71,868 thousand and investing cash flow was negative $278,604 thousand.

The filing identifies the GEO debt refinancing and the ability to access capital for the LEO constellation as specific financial matters still subject to uncertainty.

Key Figures

Q2 2026 Revenue: $79,493 (thousand) Q2 2026 Adjusted EBITDA: $22,093 (thousand) Q2 2026 Net Loss: $558,550 (thousand) +5 more

8 metrics

Q2 2026 Revenue $79,493 (thousand) Consolidated revenue for the three months ended June 30, 2026; down 25% year over year

Q2 2026 Adjusted EBITDA $22,093 (thousand) Adjusted EBITDA for the three months ended June 30, 2026; down 62% year over year

Q2 2026 Net Loss $558,550 (thousand) Net loss for the three months ended June 30, 2026, versus a $75,529 thousand gain in 2025

Telesat Lightspeed H1 2026 Investment $337,000 (thousand) Total investment in Telesat Lightspeed in the first six months of 2026; $40,000 operating, $297,000 capex

GEO Backlog $900,000 (approximate) GEO segment backlog as of June 30, 2026

LEO Backlog Pro Forma ESCP-P $5,600,000 Pro forma LEO backlog including the recently signed ESCP-P contract

Cash and Cash Equivalents $383,241 (thousand) Cash and cash equivalents balance as of June 30, 2026

Current and Long-Term Indebtedness $2,742,738 (current); $1,051,429 (long-term) Debt balances as of June 30, 2026

Key Terms

Adjusted EBITDA, backlog, goodwill impairment, Upper C-Band Report and Order, +1 more

5 terms

Adjusted EBITDA financial

"The following table provides a quantitative reconciliation of net income to Adjusted EBITDA"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

backlog financial

"As of June 30, 2026, backlog for our GEO segment totaled approximately $900 million"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

goodwill impairment financial

"The variance was primarily due to a loss associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants, a GEO goodwill impairment charge"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

Upper C-Band Report and Order regulatory

"we are scheduled to receive US$189 million in incentive payments as part of the process of repurposing 160 MHz of C-Band satellite spectrum"

Non-controlling interest financial

"Non-controlling interest $ (392,768) $ 54,533 $ (498,222) $ 18,614"

Non-controlling interest represents the portion of ownership in a company held by investors who do not have a controlling stake, meaning they do not have enough voting power to make major decisions. It is similar to owning a minority share of a business partner’s company—while they benefit from profits, they cannot control how the company is run. This matters to investors because it shows how much of the company's value is owned by outside shareholders and affects overall financial reporting.

FAQ

How did Telesat (TSAT) perform financially in Q2 2026?

Telesat reported Q2 2026 revenue of $79.5 million, down 25% year over year, and adjusted EBITDA of $22.1 million, down 62%. The adjusted EBITDA margin dropped to , and the company recorded a net loss of $558.6 million.

What drove Telesat’s large net loss in the first half of 2026?

Telesat recorded a net loss of $709.5 million in the first half of 2026, compared with a $24.1 million gain a year earlier. The loss was mainly due to non-cash losses on Telesat Lightspeed Financing Warrants, foreign exchange losses on U.S. dollar debt, and a GEO goodwill impairment.

What is the size of Telesat’s new ESCP-P contract and its impact?

Telesat signed a $2.7 billion ESCP-P contract with the Government of Canada to provide secure Military Ka-band Arctic connectivity. This contract supports expanding the Telesat Lightspeed constellation to 225 satellites and increases LEO backlog to $5.6 billion on a pro forma basis.

What are Telesat’s current GEO and LEO backlogs as of June 30, 2026?

As of June 30, 2026, Telesat reported GEO backlog of approximately $900 million and LEO backlog of approximately $1.1 billion. Including the recently signed ESCP-P contract, the company stated that LEO backlog would be $5.6 billion on a pro forma basis.

How much is Telesat investing in the Telesat Lightspeed LEO program in 2026?

In the first half of 2026, Telesat invested $337 million in the Telesat Lightspeed program, including $40 million of operating expense and $297 million of capital expenditure. In Q2 alone, Lightspeed investment totaled $165 million.

What is Telesat’s debt and cash position as of June 30, 2026?

At June 30, 2026, Telesat held $383.2 million in cash and cash equivalents. Current indebtedness was $2.74 billion and long‑term indebtedness was $1.05 billion, reflecting a highly leveraged balance sheet amid ongoing Lightspeed investments.

What guidance or outlook did Telesat (TSAT) provide for 2026?

Telesat stated it is maintaining its GEO segment guidance provided in March and raising its Telesat Lightspeed spending forecast to reflect an expanded 225‑satellite constellation, assuming an average foreign exchange rate of US$1 = C$1.38.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Form 6-K: How Foreign Companies Report to the SEC →

Available on EDGAR 08/13/2026 - 07:18 AM Accepted by SEC EDGAR 08/13/2026 - 07:18 AM Learn about SEC filing dates

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934

For the Month of August 2026

Commission File No.: 001-41083

TELESAT CORPORATION (Name of Registrant)

160 Elgin Street, Suite 2100, Ottawa, Ontario, Canada K2P 2P7
(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒            Form 40-F ☐

EXHIBITS

The following information is furnished to the Securities and Exchange Commission as part of this report on Form 6-K:

Exhibit No.		Document
99.1		News release dated August 13, 2026 — “Telesat Reports Results for the Quarter and Six Months Ended June 30, 2026”

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	TELESAT CORPORATION
Date: August 13, 2026	By:	/s/ STEFANO TAUCER
	Name:	Stefano Taucer
	Title:	Vice President, General Counsel and Secretary

2

Exhibit 99.1

 

Telesat reports results for the three and six months ended June 30, 2026

OTTAWA, CANADA – August 13, 2026 – Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three- and six-month periods ended June 30, 2026. All amounts are in Canadian dollars and reported under IFRS® Accounting Standards unless otherwise noted.

“It’s been an eventful past few months for Telesat and I’m very pleased with the rapid progress the company is making and the strong traction we’re seeing with customers for Telesat Lightspeed,” commented Dan Goldberg, Telesat’s President and CEO. “In our LEO business, the most significant highlight was the announcement last week that we signed a $2.7 billion contract, including option periods, with the Government of Canada under the ESCP-P program to deliver secure Military Ka-band Arctic connectivity to the Canadian Armed Forces. As a result of this initial ESCP-P contract, we announced the expansion of the Telesat Lightspeed satellite constellation to 225 satellites, a 44% increase over our prior plan, which positions us to accelerate the growth of our LEO business while serving the evolving and mission critical requirements of defence and commercial customers. Telesat Lightspeed is fully funded and we remain on track to commence global commercial service around the end of Q1 2028.”

“In our GEO business, our efforts to drive resilient cash flow from our existing GEO satellite fleet resulted in contract signings that led to a sequential expansion of our GEO backlog. We continue to be focused on maintaining strict cost discipline to mitigate revenue pressures. We were pleased to see the release of the U.S. Federal Communications Commission’s Upper C-Band Report and Order last month, under the terms of which we are scheduled to receive US$189 million in incentive payments as part of the process of repurposing 160 MHz of C-Band satellite spectrum for terrestrial wireless use.”

“Finally, we continue to work to optimize the company’s capital structure and toward refinancing the Telesat GEO debt that starts to mature later this year. We recently borrowed US$120 million to be used for general corporate purposes at a subsidiary of Telesat GEO, providing us with further financial resources to support the business.”

For the quarter ended June 30, 2026, Telesat reported consolidated revenue of $79 million, a decrease of 25% ($27 million) compared to the prior year, and adjusted EBITDA¹ of $22 million, a decrease of 62% ($37 million) from the second quarter of 2025. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 45%. Telesat net loss for the quarter was $559 million compared to a $76 million gain in the prior year. The net loss was primarily due to non-cash losses associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants and, owing to a weakening of the Canadian dollar relative to the U.S. dollar, an increase in the Canadian dollar value of our U.S. dollar-denominated debt.

In our GEO segment, revenue for the quarter was $78 million, a 26% decline ($28 million) from the same period in 2025. The revenue decline was driven primarily by non-renewals of certain broadcast contracts in 2025 and, to a lesser extent, reductions in services for fixed broadband customers, partially offset by new contracts in our aviation vertical. The GEO segment adjusted EBITDA for the quarter was $43 million, a 42% ($32 million) decline from the comparable period in 2025, reflecting lower revenue and higher expenses related to our debt refinancing process. Excluding the costs related to our Telesat GEO debt refinancing process, adjusted EBITDA for the GEO segment was 30% lower than the prior period and the adjusted EBITDA margin¹ was 73%, compared to 77% in the same period of 2025.

In our LEO segment, we invested $165 million in the Telesat Lightspeed program in the second quarter of 2026, reflecting $20 million in operating expense and $145 million in capital expenditure.

For the six-month period ending June 30, 2026, Telesat reported consolidated revenue of $167 million, a decrease of 25% ($56 million) compared to the prior year, and adjusted EBITDA¹ of $57 million, a decrease of 55% ($69 million) from the first half of 2025. Foreign exchange does not materially impact these year-on-year comparisons. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 43%. Telesat net loss for the first six months of 2026 was $710 million, compared to a $24 million gain in the prior year. The variance was primarily due to a loss associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants, a GEO goodwill impairment charge, lower adjusted EBITDA, and a foreign exchange loss associated with the impact of a weaker Canadian dollar on the Canadian dollar value of the company’s U.S. dollar-denominated debt.

GEO segment revenue in the six months ending June 30, 2026, was $164 million, a 26% decline ($57 million) from the same period in 2025. GEO segment adjusted EBITDA for the six months ending June 30, 2026, was $98 million, a 39% decline from the comparable period in 2025. Excluding expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA for the GEO segment was 30% lower than the prior period, and the adjusted EBITDA margin was 73% in the first six months of 2026, compared to 77% in the same period of 2025.

Telesat invested $337 million in the Telesat Lightspeed program in the first six months of 2026, of which $40 million was recorded as operating expense and $297 million as capital expenditure.

As of June 30, 2026, backlog² for our GEO segment totaled approximately $900 million and LEO backlog² totaled approximately $1.1 billion. Pro forma for the addition of the recently-signed ESCP-P contract, LEO backlog would be $5.6 billion. GEO satellite utilization was 60% at June 30, 2026, down approximately 2% from March 31, 2026, after adjusting for the impact of the retirement of Telstar 14R and Anik F4 during the quarter.

Business Highlights

● In August, Telesat signed a $2.7 billion agreement, including option periods, with Canada's Defence Investment Agency to deliver Telesat Lightspeed Military Ka-band services to the Canadian Armed Forces for the Enhanced Satellite Communications Project – Polar (ESCP-P) program. The contract is for a period of 15 years, including option years, with service under the contract beginning once Telesat Lightspeed enters commercial service. The contract includes milestone-based payments totaling $2.0 billion which are expected to be received between Q3 2026 and Q4 2028. The milestone payments will principally be used to fund the expansion of the Telesat Lightspeed constellation from 156 to 225 satellites.

● In July, the U.S. Federal Communications Commission issued its Upper C-Band Report and Order, which established the framework for repurposing 160 MHz of Upper C-Band satellite spectrum in the U.S. for terrestrial wireless use. As set forth in the FCC’s Order, Telesat is eligible to receive US$189 million in incentive payments, contingent upon meeting the specified transition deadlines. The order also has a mechanism for the reimbursement of reasonable and necessary transition costs.

● In August, Telesat entered into a secured term loan agreement with an unaffiliated third-party lender, on arm’s length terms, under which Telesat borrowed US$120 million for general corporate purposes. The funds were borrowed by a subsidiary of Telesat GEO Inc. The borrower is a non-guarantor under the documents governing Telesat GEO’s existing term loan and senior notes. The loan matures in four years, subject to acceleration and a prepayment premium upon certain customary events, and accrues interest based on SOFR plus an applicable margin. Additional information about the loan agreement can be found in Telesat’s quarterly report of Form 6-K filed on or about the date hereof.

2026 Financial Outlook

(assumes an average foreign exchange rate of US$1=C$1.38)

Telesat is maintaining its GEO segment guidance provided in March:

● GEO revenue to be between $300 million and $320 million;

● GEO adjusted EBITDA¹ to be between $210 million and $230 million, excluding non-recurring Telesat GEO debt refinancing costs; and

Telesat is raising its Telesat Lightspeed spending forecast to reflect the expanded constellation of 225 satellites:

● Total spending on the Telesat Lightspeed program, including both expensed and capitalized costs, to be between $1.3 billion and $1.5 billion, an increase of $300 million from the prior range of $1.0 billion to $1.2 billion.

Telesat’s quarterly report on Form 6-K for the quarter and six months ended June 30, 2026, has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC’s website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca.

Conference Call

Telesat has scheduled a conference call on Thursday, August 13^th, 2026, at 10:30 a.m. EDT to discuss its financial results for the three- and six-month periods ended June 30, 2026. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Donald Tremblay, Chief Financial Officer, of Telesat.

Dial-in Instructions:

The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 2873917 followed by the number sign (#). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe).

Webcast:

The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/bx45s7mp. A replay of the webcast will be archived on Telesat’s website under the tab “Investors”.

Dial-in Audio Replay:

A replay of the teleconference will be available one hour after the end of the call on August 13, 2026, until 11:59 p.m. EDT on August 27, 2026. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 2873917 followed by the number sign (#).

2

About Telesat

Telesat Corporation (Nasdaq and TSX: TSAT) (“Telesat”) is a global satellite operator and leader in advanced satellite communications, redefining broadband connectivity through its Telesat Lightspeed Low Earth Orbit (LEO) network.

Designed from inception for interoperability with enterprise and government applications, Telesat Lightspeed delivers secure, resilient, high-performance broadband connectivity with fibre-like speeds. Its advanced, software-defined architecture operates in both commercial and military Ka-band spectrum, enabling mission-critical communications with enhanced security and protection against evolving threats. Purpose-built to meet the most demanding requirements, Telesat Lightspeed provides telecom, enterprise, aviation, maritime and defence customers with unprecedented flexibility and control to dynamically manage their own services and deliver differentiated, end-to-end connectivity solutions worldwide.

With nearly 60 years of innovation, engineering excellence and a collaborative approach to customer success, Telesat is uniquely positioned to deliver secure, scalable and future-ready connectivity solutions that help customers solve their most complex communications challenges and achieve mission success. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com.

Investor Relations Contact:

James Ratcliffe

+1 613 748 8424

ir@telesat.com

Forward-Looking Statements Safe Harbor

This news release contains statements that are not based on historical fact, including financial outlook for 2026, estimated timing of the commencement of global commercial service on Telesat Lightspeed, commencement of service under specific contracts, the impact of certain contracts on Telesat’s scale and capacity, the timing of milestone payments under certain contracts, the growth opportunities of Telesat Lightspeed, and potential eligible payments under the Upper C-Band Report and Order, are “forward-looking statements’’ and “future-orientated financial performance” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expect,”, “scheduled”, “continue,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Telesat undertakes no obligation to update the information made in this news release in the event facts or circumstances subsequently change after the date of this release.

These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat’s current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation, the ability to refinance Telesat GEO Inc.’s debt, the outcome of litigation related to Telesat GEO Inc.’s debt and the 62% equity distribution, volatility of securities values in an industry sector where values may be influenced by economic and other factors beyond Telesat’s control, inflation, rising or prolonged elevated interest rates, fluctuations in foreign exchange rates, and tariffs; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures, impaired satellite performance or dependence on large customers; the ability to deploy successfully an advanced global LEO satellite constellation and the timing of any such deployment; Telesat’s ability to meet the conditions for advance of the loans under the funding agreements for the constellation; technological hurdles, including Telesat’s and Telesat’s contractors’ development and deployment of the new technologies required to complete the constellation in time to meet Telesat’s schedule, or at all, the availability of services and components from Telesat’s and Telesat’s contractors’ supply chains; competition, including with other LEO systems, deployed and yet to be deployed; risks associated with domestic and foreign government regulation, including government restrictions and regulations, access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; and the ability to expand Telesat’s existing satellite utilization. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat’s annual report on Form 20-F for the year ended December 31, 2025, that was filed on March 17, 2026, and the Form 6-K that was filed on May 5, 2026, with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval + (SEDAR+), and may be accessed on the SEC’s website at www.sec.gov and SEDAR’s website at www.sedarplus.ca.

3

Telesat Corporation

Unaudited Interim Condensed Consolidated Statements of Income (Loss)

For the periods ended June 30

		Three months								Six months
(in thousands of Canadian dollars, except per share amounts)		2026				2025				2026				2025
Revenue		$	79,493			$	106,106			$	166,553			$	222,855
Operating expenses			(61,728	)			(50,556	)			(117,064	)			(103,598	)
Depreciation			(22,064	)			(25,914	)			(44,194	)			(51,823	)
Amortization			(8,729	)			(11,639	)			(17,340	)			(22,538	)
Other operating gains (losses), net			293				(131	)			(82,054	)			3,819
Operating income			(12,735	)			17,866				(94,099	)			48,715
Interest expense			(50,446	)			(53,631	)			(100,404	)			(110,295	)
Gain on repurchase of debt			—				6,896				—				6,896
Interest and other income			1,864				6,834				6,013				13,042
Gain (loss) on change in fair value of financial instruments			(471,925	)			(13,248	)			(487,746	)			(46,660	)
Gain (loss) on foreign exchange			(19,900	)			114,610				(37,206	)			117,090
Income (loss) before income taxes			(553,142	)			79,327				(713,442	)			28,788
Tax (expense) recovery			(5,408	)			(3,798	)			3,943				(4,716	)
Net income (loss)		$	(558,550	)		$	75,529			$	(709,499	)		$	24,072
Net income (loss) attributable to:
Telesat Corporation shareholders		$	(165,782	)		$	20,996			$	(211,277	)		$	5,458
Non-controlling interest			(392,768	)			54,533				(498,222	)			18,614
		$	(558,550	)		$	75,529			$	(709,499	)		$	24,072
Net income (loss) per common share attributable to Telesat Corporation shareholders
Basic		$	(10.89	)		$	1.43			$	(14.16	)		$	0.38
Diluted		$	(10.89	)		$	1.38			$	(14.16	)		$	0.36
Total Weighted Average Common Shares Outstanding
Basic			15,219,358				14,684,485				14,915,651				14,503,290
Diluted			15,219,358				16,562,440				14,915,651				16,238,156

4

Telesat Corporation

Unaudited Interim Condensed Consolidated Balance Sheets

(in thousands of Canadian dollars)		June 30, 2026				December 31, 2025
Assets
Cash and cash equivalents		$	383,241			$	509,798
Trade and other receivables			54,529				58,422
Other current financial assets			556				430
Current income tax recoverable			19,425				5,952
Prepaid expenses and other current assets			256,313				257,456
Total current assets			714,064				832,058
Satellites, property and other equipment			3,067,722				2,716,708
Deferred tax assets			5,365				4,231
Other long-term financial assets			18,513				18,283
Long-term income tax recoverable			2,815				6,993
Other long-term assets			324,562				368,657
Intangible assets			428,877				442,278
Goodwill			2,198,887				2,214,575
Total assets		$	6,760,805			$	6,603,783
Liabilities
Trade and other payables		$	50,176			$	57,447
Other current financial liabilities			1,344,570				857,637
Income taxes payable			117				2,772
Other current liabilities			54,656				58,431
Current indebtedness			2,742,738				2,341,145
Total current liabilities			4,192,257				3,317,432
Long-term indebtedness			1,051,429				1,152,462
Deferred tax liabilities			68,643				91,991
Other long-term financial liabilities			9,533				10,091
Other long-term liabilities			254,120				262,211
Total liabilities			5,575,982				4,834,187
Shareholders’ Equity
Share capital			87,186				69,997
Accumulated earnings			118,935				330,814
Reserves			170,483				130,009
Total Telesat Corporation shareholders’ equity			376,604				530,820
Non-controlling interest			808,219				1,238,776
Total shareholders’ equity			1,184,823				1,769,596
Total liabilities and shareholders’ equity		$	6,760,805			$	6,603,783

5

Telesat Corporation

Unaudited Interim Condensed Consolidated Statements of Cash Flows

For the six months ended June 30

(in thousands of Canadian dollars)		2026				2025
Cash flows (used in) generated from operating activities
Net income (loss)		$	(709,499	)		$	24,072
Adjustments to reconcile net income (loss) to cash flows from operating activities
Depreciation			44,194				51,823
Amortization			17,340				22,538
Tax expense (recovery)			(3,943	)			4,716
Interest expense			100,404				110,295
Interest income			(8,330	)			(13,295	)
(Gain) loss on foreign exchange			37,206				(117,090	)
(Gain) loss on change in fair value of financial instruments			487,746				46,660
Share-based compensation			6,939				5,592
(Gain) loss on disposal of assets			(5	)			(3,819	)
Gain on repurchase of debt			—				(6,896	)
Impairment			84,469				—
Deferred revenue amortization			(22,840	)			(29,183	)
Pension expense			2,251				2,728
Other			3,880				2,387
Income taxes paid, net of income taxes received			(15,339	)			(9,961	)
Interest paid, net of interest received			(87,118	)			(91,158	)
Operating assets and liabilities			(9,223	)			108,847
Net cash (used in) generated from operating activities			(71,868	)			108,256
Cash flows (used in) generated from investing activities
Cash payments related to satellite programs			(178,181	)			(347,267	)
Cash payments related to property and other equipment			(98,704	)			(69,945	)
Net proceeds from disposal of assets			—				4,500
Investments and other			(1,719	)			—
Net cash (used in) generated from investing activities			(278,604	)			(412,712	)
Cash flows (used in) generated from financing activities
Proceeds from indebtedness			230,286				340,000
Repurchase of indebtedness			—				(4,501	)
Payments of principal on lease liabilities			(1,394	)			(1,552	)
Satellite performance incentive payments			(1,808	)			(1,204	)
Proceeds from exercise of stock options			599				—
Tax withholdings on settlement of restricted and performance share units			(14,733	)			(8,325	)
Net cash (used in) generated from financing activities			212,950				324,418
Effect of changes in exchange rates on cash and cash equivalents			10,965				(24,640	)
Changes in cash and cash equivalents			(126,557	)			(4,678	)
Cash and cash equivalents, beginning of period			509,798				552,064
Cash and cash equivalents, end of period		$	383,241			$	547,386

6

Telesat’s Adjusted EBITDA Margin⁽¹⁾:

The following table provides a quantitative reconciliation of net income to Adjusted EBITDA and Adjusted EBITDA margin, each of which are non-IFRS Accounting Standards measures.

		Three Months Ended June 30,								Six Months Ended June 30,
(in thousands of Canadian dollars) (unaudited)		2026				2025				2026				2025
Net income (loss)		$	(558,550	)		$	75,529			$	(709,499	)		$	24,072
Tax expense (recovery)			5,408				3,798				(3,943	)			4,716
(Gain) loss on foreign exchange			19,900				(114,610	)			37,206				(117,090	)
(Gain) loss on change in fair value of financial instruments			471,925				13,248				487,746				46,660
Interest and other income			(1,864	)			(6,834	)			(6,013	)			(13,042	)
Interest expense			50,446				53,631				100,404				110,295
Gain on repurchase of debt			—				(6,896	)			—				(6,896	)
Depreciation			22,064				25,914				44,194				51,823
Amortization			8,729				11,639				17,340				22,538
Other operating (gains) losses, net			(293	)			131				82,054				(3,819	)
Non-recurring compensation expenses(3)			518				763				806				1,222
Non-cash expense related to share-based compensation			3,810				2,351				6,939				5,592
Adjusted EBITDA		$	22,093			$	58,664			$	57,234			$	126,071
Revenue		$	79,493			$	106,106			$	166,553			$	222,855
Adjusted EBITDA Margin			27.8	%			55.3	%			34.4	%			56.6	%

End Notes

¹ Non-IFRS Accounting Standards Measures – Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS Accounting Standards measures. EBITDA is defined as “Earnings Before Interest, Taxes, Depreciation and Amortization.” Adjusted EBITDA is used to measure Telesat’s financial performance. Adjusted EBITDA is defined as operating income (less certain operating expenses such as share-based compensation expenses and unusual and non-recurring items, including restructuring related expenses) before interest expense, taxes, depreciation and amortization. Adjusted EBITDA margin is used to measure Telesat’s operating performance. Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to revenue.

Adjusted EBITDA and Adjusted EBITDA margin are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. Adjusted EBITDA allows investors and Telesat to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists investors and Telesat to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes that the use of Adjusted EBITDA improves comparability of performance by excluding interest expense.

Telesat believes that the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS Accounting Standards measures enhances the understanding of our operating results and is useful to investors and us in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA and Adjusted EBITDA margin as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA and Adjusted EBITDA margin should be used in conjunction with IFRS Accounting Standards measures and are not presented as a substitute for cash flows from operations as a measure of our liquidity or as a substitute for net income (loss) as an indicator of our operating performance.

² Telesat’s backlog represents future cash inflows from capacity allocation or service delivery contracts. As of June 30, 2026, GEO backlog was $0.9 billion and represents our expected future revenue from existing GEO service contracts (without discounting for present value) including any deferred revenue that we will recognize in the future in respect of cash already received. As of June 30, 2026, the expected cash inflow from Telesat Lightspeed capacity allocation and service contracts (without discounting for present value) was $1.1 billion.

³ Includes severance payments and special compensation and benefits for executives and employees.

7

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