Telesat is increasing its expected 2026 spending on Lightspeed by $300 million as it expands the satellite network under a new Canadian military contract, even as revenue and earnings from its existing satellite business continue to contract sharply.
The Ottawa-based company now expects to spend between $1.3 billion and $1.5 billion on Lightspeed this year, up from its previous forecast of $1.0 billion to $1.2 billion. Telesat attributed the increase to last week’s decision to enlarge the planned constellation by 44%, from 156 satellites to 225.
That expansion followed an approximately $2.3 billion contract awarded by Canada’s Defence Investment Agency for military satellite communications in the Arctic and other high-latitude regions. Two option periods could bring the procurement’s total value to approximately $2.73 billion.
Sponsored · Selkirk Copper Mines
The contrast with Telesat’s existing geostationary satellite operations was visible in its Q2 2026 numbers. Consolidated revenue fell 25% year over year to $79.5 million, while adjusted EBITDA declined 62% to $22 million.
GEO revenue declined 26% to $78 million as broadcast contract non-renewals and lower fixed-broadband services outweighed new aviation business, while GEO adjusted EBITDA fell 42% to $43 million.
The company also reported a consolidated net loss of $558.6 million, reversing a $75.5 million profit a year earlier. The headline number substantially exceeded the deterioration in the operating business because it included a $471.9 million loss from changes in the fair value of financial instruments and a $19.9 million foreign-exchange loss. Operating loss was $12.7 million compared with operating income of $17.9 million a year earlier.
Of the quarterly net loss, $165.8 million was attributable to Telesat Corporation shareholders and $392.8 million to non-controlling interests.
Telesat invested $165 million in Lightspeed during the quarter, including $145 million of capital spending. First-half investment reached $337 million. Pro forma for the new military contract, the company said its Lightspeed backlog would rise from approximately $1.1 billion to $5.6 billion.
Meanwhile, cash and cash equivalents stood at $383.2 million at June 30, down from $509.8 million at the end of 2025. Telesat continues working to refinance debt at its GEO business that begins maturing later this year and disclosed that a GEO subsidiary borrowed another US$120 million in August under a four-year secured term loan.
The company maintained its 2026 GEO revenue guidance of $300 million to $320 million and adjusted EBITDA guidance of $210 million to $230 million, excluding non-recurring refinancing costs. Telesat continues to target commercial service for Lightspeed around the end of Q1 2028.
Telesat shares were down approximately 9.6% in Nasdaq morning trading Thursday.
