Telesat Corporation Q1 FY2026 earnings call

• GEO business faces structural challenges but came in ahead of adjusted EBITDA guidance for 2025, optimized cost structure. - LEO: significant progress on Lightspeed, first satellites scheduled to launch end of 2025, launch cadence heavy in 2027, service now expected Q1 2028 due to chip readiness issues, commercial landscape evolving favorably for Lightspeed, strong opportunities in government defense market, added military Ka spectrum to Lightspeed, key priorities for 2026 include successfully deploying Lightspeed, maximizing GEO revenue and controlling costs, refinancing Telesat Canada debt. - Donald joined as CFO, provided details on 2025 financials and 2026 guidance

In 2025, reported revenue was $418 million, adjusted EBITDA was $213 million, and cash on balance sheet was $510 million. Fourth quarter 2025 revenue was $94 million, adjusted EBITDA was $40 million. Legacy GEO business segment EBITDA in 2025 was $284 million (or $317 million excluding $33 million of expense related to equity distribution and debt refinancing - related costs), margin 77%, down from 80% in 2024. LEO loss before interest, tax, depreciation, and amortization for 2025 was $67 million, operating expenses $72 million. Capital expenditures in 2025 on accrued basis were $708 million, nearly all related to Lightspeed. For 2026, legacy GEO expected revenue between $300 - $320 million (year - on - year decline of $90 - $110 million), adjusted EBITDA $210 - $220 million. LEO expected to spend $1.0 - $1.2 billion in 2026 including operating costs, capitalized labor and interest

• Legacy GEO: 2026 revenue between $300 - $320 million, adjusted EBITDA $210 - $220 million. - LEO: 2026 investment in Lightspeed between $1.0 - $1.2 billion including operating costs, capitalized labor and interest. Guidance assumes average exchange rate of 1.38 Canadian dollars per U.S. dollar

Q: Decision to put military Ka band on Lightspeed, no deal with Canadian Armed Forces announced, still expect deal? Where licensing sit?

A: Announced in December to form partnership for ESCaPE, still negotiating, focused on getting contract done before end of year, licensing relates to negotiation with Government of Canada Q: Launch schedule with three - month delay, sense of satellites launched by end of 2027?

A: Initial launch still end of 2025, significant launch cadence kicks off mid next year, by end of next year at least 96 satellites in orbit for full global coverage Q: Mil Ka - spacecraft side, gateway infrastructure update, user terminal development?

A: Gateway frequencies unaffected, Mil Ka - compatible user terminals for various platforms available when in service, user terminal partners can accommodate Mil Ka addition Q: Backlog potential from Canadian military and others for ESCaPE, additional spend?

A: Robust pipeline for Lightspeed, especially in defense and sovereignty applications, expect significant growth in backlog this year, but need to get through contract negotiation with Government of Canada Q: Spectrum change explanation, impact on launches and customer attention?

A: Military Ka band adjacent to commercial Ka band, easy modification, progress on Lightspeed and geopolitical environment changes lead to more engagement with enterprise/government customers, not commenting on Amazon's schedule