Telesat Corporation
- Open
- 43.12
- Day high
- 44.00
- Day low
- 42.64
- Prev close
- 42.82
- Volume
- 90K
- Mkt cap
- $661M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 2.4
- P/S
- 2.5
- Yield
- —
- Per share
- —
Telesat Corporation (TSAT) is a Technology company listed on NASDAQ. The stock is up 111% over the past year. Drillr has 1 published research article covering TSAT.
Telesat Corporation (TSAT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TSAT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 13, 2026 | $-0.71 | $-7.67 | -986.6% | $56M | -0.3% |
| May 5, 2026 | $-0.67 | $-2.21 | -231.5% | $63M | +0.9% |
| Mar 17, 2026 | $-1.90 | $-0.97 | +49.0% | $68M | -0.0% |
| Nov 4, 2025 | $-0.78 | $-1.73 | -121.8% | $72M | -21.2% |
| Mar 27, 2025 | $-3.76 | $-5.90 | -56.9% | $89M | -16.6% |
| Nov 14, 2024 | $-0.36 | $-0.08 | +77.8% | $102M | -16.2% |
| Aug 14, 2024 | $2.47 | $-2.87 | -216.2% | $111M | +14.1% |
| May 10, 2024 | $-0.80 | $-0.80 | +0.0% | $112M | -76.8% |
| Aug 11, 2023 | — | $1.53 | — | $136M | — |
| May 11, 2023 | — | $0.44 | — | $136M | — |
| Aug 5, 2022 | — | $-0.13 | — | $145M | — |
| May 6, 2022 | — | $0.89 | — | $149M | — |
Telesat Corporation company profile
Overview
Telesat Corporation (NASDAQ:TSAT) is a Canadian satellite communications company founded in 1969 and headquartered in Ottawa, Canada. Originally established as a domestic satellite operator, Telesat has evolved into a global satellite services provider operating a fleet of geostationary (GEO) satellites. The company went public in 2005 and is currently undergoing a major strategic transformation, investing billions of dollars to develop Telesat Lightspeed, a next-generation low Earth orbit (LEO) satellite constellation designed to compete with emerging players like SpaceX's Starlink while targeting enterprise and government customers.
Business
Telesat operates in the satellite communications industry, providing mission-critical connectivity services through space-based infrastructure. The company's core business revolves around satellite capacity leasing and managed satellite services to various customer segments worldwide. The company operates two distinct business segments. The GEO segment represents approximately 90% of current revenues and utilizes traditional geostationary satellites positioned 22,236 miles above Earth's equator. These satellites provide coverage to large geographic areas but have higher latency due to the distance signals must travel. GEO services include direct-to-home television broadcasting, enterprise connectivity, cellular backhaul, maritime and aeronautical communications, and government services. The LEO segment represents Telesat's future growth strategy through the Lightspeed constellation. Low Earth orbit satellites operate much closer to Earth (typically 500-1,200 miles altitude), enabling lower latency communications crucial for modern applications. The Lightspeed network will consist of 198 satellites providing global coverage with fiber-like performance characteristics. Telesat's services enable television broadcasters to deliver programming directly to consumers' homes, provide internet connectivity to remote areas, support cellular network infrastructure in underserved regions, and offer secure communications for government and defense applications. The company also provides value-added services including digital encoding, signal authorization, and ground station operations that complement basic satellite capacity leasing.
Revenue model
Telesat generates revenue primarily through satellite capacity leasing and managed services contracts. Customers pay for dedicated satellite bandwidth on either long-term contracts (typically multi-year agreements) or shorter-term occasional use arrangements. The company's paying customers include television broadcasters, direct-to-home service providers like EchoStar/DISH, telecommunications carriers, government agencies, maritime operators, and enterprise customers requiring connectivity in remote locations. The business model benefits from high recurring revenue visibility due to long-term contracts, though this also creates challenges when major contracts come up for renewal at lower rates. Current revenue streams include approximately $400-425 million annually, with the GEO business generating strong EBITDA margins around 74-78%. Several factors influence Telesat's profitability margins. Positive margin drivers include the high fixed-cost nature of satellite operations (once launched, satellites have minimal incremental operating costs), long-term contracted revenue providing stability, and premium pricing for specialized government and enterprise services. Negative margin pressures come from intense competition from LEO providers like Starlink forcing price reductions, satellite end-of-life requiring costly replacements, customer migration to alternative technologies, and the significant ongoing investment in Lightspeed development creating substantial operating expenses of $110-120 million annually. The company faces particular pressure in maritime and enterprise segments where customers are migrating to lower-cost LEO alternatives, resulting in revenue declines that management expects will be offset once Lightspeed becomes operational in the late 2020s.
Competitive moat
Telesat's competitive moat is currently moderate but weakening in its legacy GEO business while potentially strengthening in its future LEO business. The company's traditional moat relied on spectrum licenses, orbital slot rights, and established customer relationships built over decades of reliable service. However, this moat is being eroded by new LEO constellation operators offering superior performance at competitive prices. The company's strongest defensive assets include valuable spectrum rights and orbital positions that cannot be easily replicated, deep technical expertise in satellite operations spanning over 50 years, established relationships with government customers who value reliability and security, and significant barriers to entry in satellite manufacturing and deployment. Competitive threats primarily come from SpaceX's Starlink, which has already deployed thousands of LEO satellites and captured significant market share in maritime and enterprise segments. Amazon's Project Kuiper and other emerging LEO constellations pose additional future competition. The company also faces pressure from terrestrial alternatives like fiber networks and 5G cellular infrastructure in some markets. Telesat's future moat depends heavily on successful execution of Lightspeed, which aims to differentiate through superior service level agreements, managed enterprise services, and government-focused offerings rather than competing directly in the consumer broadband market. The company's partnership approach and focus on B2B customers could provide sustainable competitive advantages if properly executed, though this remains unproven given the constellation is still under development.
Risks & safety
Telesat presents moderate financial risk with adequate liquidity but high leverage and ongoing cash burn from Lightspeed development. • Liquidity position: Strong with $559 million in cash and short-term investments as of Q1 2025, providing runway for continued operations and Lightspeed development • Debt burden: High debt-to-equity ratio of 4.73x indicates significant leverage, though the company has been actively repurchasing debt when advantageous • Cash flow: Positive operating cash flow of $97 million in Q1 2025 and free cash flow of $73 million, though this varies quarterly due to Lightspeed investments • Valuation metrics: Trading at EV/EBITDA of 17.0x and price-to-book of 0.55x, with negative P/E due to Lightspeed development costs • Solvency considerations: The company has government backing for Lightspeed funding and maintains strong relationships with Canadian authorities, reducing existential risk despite high capital requirements
Recent development
Telesat's most significant strategic development is the Lightspeed LEO constellation program, representing a fundamental business transformation. Over the past few years, the company has secured financing agreements with the Canadian and Quebec governments, selected MDA as the prime contractor, and committed over $1 billion in development spending. The constellation design was optimized from 298 to 198 satellites, reducing total program costs to approximately $3.5 billion while maintaining global coverage capabilities. The company has made substantial commercial progress, securing nearly CAD $1.1 billion in LEO backlog including a significant multi-year agreement with ViaSat covering aviation, maritime, enterprise, and defense markets. Management expects the first satellite launch toward the end of 2025, with full global coverage targeted by 2027. On the operational side, Telesat has expanded its workforce from approximately 500 to over 700 employees to support Lightspeed development. The company has procured critical infrastructure including 27 gateway antennas from Intellian and is developing new satellite flight operations facilities. Simultaneously, the company has been managing the decline of its legacy GEO business through strategic contract restructuring, including renegotiated agreements with major customers like EchoStar/DISH and Explorer. Management has focused on maximizing EBITDA and cash flow from existing satellites while preparing for the transition to LEO services.
TSAT company profile · for informational purposes only — not investment advice.
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