Telesat Corp (NASDAQ: TSAT)

Telesat Corporation is a leading global satellite operator that provides mission critical communications services through its fleet of geostationary (GEO) satellites and is developing a low Earth orbit (LEO) constellation named Telesat Lightspeed. The company serves customers worldwide with voice, data, video and broadband connectivity solutions, leveraging more than five decades of experience in satellite communications. Since the launch of the world’s first domestic commercial satellite in 1972, Telesat has been a pioneer in the field, introducing innovations such as the first Ku band direct to home television service in 1978 and the first consumer two way Ka band broadband via satellite in 2004.

Telesat generates revenue primarily from service agreements for satellite capacity, ground services and end to end managed services. For the year ended December 31, 2025, broadcast services accounted for approximately 47% of revenue, enterprise services for about 49%, and consulting and other services for the remaining 4%. Its broadcast customers include major direct to home television providers such as Bell TV, Shaw Direct and DISH Network, while enterprise clients range from telecommunications carriers like Bell Canada and Hughes Network Systems to maritime and aviation firms such as Marlink and Viasat. Government contracts with the Canadian administration and allied nations also contribute to revenue. The company reports a geostationary contracted revenue backlog of $0.8 billion and has secured future cash inflows of $1.0 billion from agreements for its Telesat LEO service. In 2025, Telesat produced an adjusted EBITDA of $220.8 million, representing an adjusted EBITDA margin of 52.8%. It reported an average fleet utilization rate of 59% and an average remaining commercial life of about four years for its GEO satellites. Historically, roughly 80% of each year’s total revenue is already under contract at the start of the year, providing strong visibility into future earnings.

Telesat holds a strong position as one of the world's leading satellite operators, competing with peers such as SES S. A., Eutelsat Group, Viasat and SpaceX. Its competitive advantages stem from over 55 years of operational heritage, a portfolio of 14 GEO satellites occupying favorable orbital slots, long standing relationships with a blue chip customer base, and deep expertise in satellite design, launch and operations. The company’s early adoption of high throughput spot beams and its ongoing investment in the Telesat LEO constellation further differentiate it in the evolving market for low latency broadband connectivity. Telesat’s LEO initiative aims to deliver fiber like broadband speeds with low latency to enterprise and government users worldwide, addressing a growing demand for high capacity connections that terrestrial networks cannot always reach economically.

Telesat serves a diverse mix of customers across the broadcast, enterprise and government sectors. Specific broadcast clients include Bell TV, Shaw Direct and DISH Network. Enterprise customers encompass Bell Canada, Hughes Network Systems, iForte, Marlink, Northwestel, Telespazio, Viasat and Vodafone. Government work spans contracts with the Canadian government, U. S. defense agencies and other allied nations, supporting applications such as secure communications, surveillance and remote connectivity. Notable agreements include a multi year partnership with Viasat for Telesat LEO services and a ten year, $600 million commitment from the Government of Canada to support rural broadband connectivity.