Key Highlights

● Third-quarter Revenue was C$81 million, down 20% from a year earlier.

● Telesat signed a C$2.7 billion initial agreement for the Lightspeed constellation.

● The planned Lightspeed constellation has grown from 156 to 225 satellites.

● Management says it is pursuing a refinancing of GEO debt.

Telesat Corporation (NASDAQ:TSAT), listed on Nasdaq and the Toronto Stock Exchange under the ticker TSAT, reported third-quarter 2026 results on October 29, 2026. The report pairs a large Canadian government contract for its Lightspeed low-earth-orbit constellation with falling legacy satellite revenue and approaching Debt maturities. Figures are in Canadian dollars. The company's shares are quoted in U.S. dollars on Nasdaq, while its reporting currency is the Canadian dollar.

Latest Company Context

For the three months ended September 30, 2026, Telesat reported revenue of C$81 million, down 20%, and Adjusted EBITDA of C$12 million, down 74%, or down 41% excluding debt refinancing costs. The net loss was C$157 million versus C$121 million a year earlier. Over nine months, revenue was C$247 million, down 24%, and the net loss was C$867 million versus C$97 million, driven by a Fair Value loss on Lightspeed financing warrants, a GEO Goodwill Impairment and lower EBITDA. GEO satellite utilization was about 59%, and GEO Backlog was about C$779 million. Management's 2026 guidance assumes an Exchange Rate of US$1 to C$1.38, which could affect comparisons for U.S. investors.

Key Business and index Drivers

Lightspeed is the main growth driver. Telesat signed a C$2.7 billion initial agreement with Canada's Defence Investment Agency for the ESCP-P program, with milestone payments of about C$2.0 billion expected between the third quarter of 2026 and the fourth quarter of 2028. The planned constellation has grown from 156 to 225 satellites, LEO backlog is about C$5.6 billion, and management says the program is fully funded, targeting high-latitude commercial service around the end of the first quarter of 2028. That fully funded statement is management's view. Third-quarter Lightspeed spending was C$368 million. Payments under the agreement depend on contract milestones, so timing may vary. Operational spending on Lightspeed was C$24 million and Capital spending was C$344 million in the quarter, and nine-month Lightspeed spending totaled C$705 million.

What Investors Should Watch

The Balance Sheet may be the pivotal issue. At September 30, 2026, current indebtedness was C$2.75 billion and long-term indebtedness was C$1.31 billion, with GEO debt beginning to mature later in 2026. Management says it is pursuing a refinancing and evaluating other alternatives, and risk disclosures reference litigation related to GEO debt and a 62% Equity distribution. Investors may watch refinancing progress, the pace of government milestone payments, and whether GEO results land within reiterated guidance of C$300 million to C$320 million of revenue and C$210 million to C$230 million of Adjusted EBITDA, excluding non-recurring refinancing costs. Lightspeed spending guidance was lowered to C$1.1 billion to C$1.3 billion because of payment timing. Delays in milestone receipts or deployment could affect Cash Flow timing.

Constellation Ambition Against Debt Pressure

Telesat's latest quarter shows a company balancing a promising, government-backed constellation program against declining legacy revenue and an unresolved debt picture. Confirmed facts include the contract, the backlog and the reported losses; the timing and terms of any refinancing, and the success of Lightspeed deployment, are uncertainties rather than predictions.