By Leo Marchandon March 2 (Reuters) - European satellite operator SES on Monday reported full-year results in line with market expectations and lowered its 2026 capital spending target, as it prepares
SES cuts capital spending target ahead of 2026 satellite launches (March 2)
SES Reports Results and Adjusts Capital Spending Amid Satellite Launch Plans
(In a story first published on March 2, corrects paragraph 1 to say the number of satellite launches this year is three, not up to 13.)
By Leo Marchandon
Financial Performance and Market Response
March 2 (Reuters) - European satellite operator SES on Monday reported full-year results in line with market expectations and lowered its 2026 capital spending target, as it prepares to launch three satellites later this year.
The company's Paris-listed shares dipped up to 7% in early trading, but reversed course to rise 3.7% by 0945 GMT.
Analyst Insights
Analysts from ING said SES's fourth-quarter earnings looked better than expected, though they noted the company did not provide an outlook beyond 2026 and that the satellite launch was now expected in the second half of the year, implying somewhat delayed revenue growth from the platform.
Company Operations and Revenue
The Luxembourg-based operator, which completed its $3.1 billion acquisition of Intelsat last year, reported annual revenue of 2.63 billion euros ($3.09 billion) and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.2 billion euros, both matching analysts' consensus.
Growth Drivers and Challenges
Demand for secure communications grew in Europe, offsetting the impact of the U.S. government shutdown and spending cuts implemented by the now-closed Department of Governmental Efficiency (DOGE), the company said.
Contract Wins and Backlog
SES signed 1.8 billion euros worth of new contracts in 2025, lifting its gross backlog to more than 6.6 billion euros, it said.
Future Outlook and Strategic Initiatives
It forecast stable 2026 revenue and core earnings on a like-for-like basis, while cutting expected capital expenditures by 100 million euros to around 700 million, as it balances investments in its medium orbit O3b mPOWER constellation and the European Union's low orbit IRIS² programme.
Collaboration with the European Commission
The company said it was working with the European Commission to validate costs and timelines for IRIS², the bloc's sovereign connectivity infrastructure designed to compete with Elon Musk's Starlink.
Additional Information
($1 = 0.8503 euros)
(Reporting by Leo Marchandon in Gdansk, editing by Milla Nissi-Prussak)
