Foreign issuer report

Summary

• Telesat signed a $2.7 billion agreement, including option periods, with Canada's Defence Investment Agency to deliver Telesat Lightspeed Military Ka-band services under the ESCP-P program, a 15-year contract with milestone payments totaling $2.0 billion expected between Q3 2026 and Q4 2028.
• The company expanded the Telesat Lightspeed constellation from 156 to 225 satellites, a 44% increase, with global commercial service on track around the end of Q1 2028.
• Q2 2026 consolidated revenue was $79 million, a decrease of 25% ($27 million), and adjusted EBITDA was $22 million, down 62% ($37 million), with a net loss of $559 million compared to a $76 million gain a year earlier.
• GEO segment Q2 revenue fell 26% ($28 million) to $78 million, and Telesat invested $165 million in Telesat Lightspeed in the quarter, including $145 million of capital expenditure.
• Under the FCC's Upper C-Band Report and Order, Telesat is eligible for US$189 million in incentive payments for repurposing 160 MHz of Upper C-Band spectrum, contingent on meeting transition deadlines.
• Telesat borrowed US$120 million under a secured four-year term loan at a subsidiary of Telesat GEO for general corporate purposes, and raised its Lightspeed spending forecast to between $1.3 billion and $1.5 billion.

Why it mattersThe ESCP-P contract and constellation expansion increase Telesat Lightspeed to 225 satellites and raise LEO backlog to a pro forma $5.6 billion. Telesat's GEO revenue continues to decline while it works to refinance GEO debt maturing later this year.