TSAT

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 10:30 a.m. ET Vice President, Investor Relations - James Maxwell Ratcliffe President and Chief Executive Officer - Daniel S. Goldberg Chief Financial Officer - Donald Tremblay Operator: Thank you for standing by. James is Jordan, and I will be your conference operator today. At this time, I would like to welcome everyone to the Telesat Second Quarter 26 Financial Results Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask questions during this time, simply press star followed by 1 on your telephone keypad. If you would like to withdraw your question, press 1 again. Thank you. I would now like to turn the call over to James Maxwell Ratcliffe. Vice president, investor relations. Please go ahead. James Maxwell Ratcliffe: Thank you, Jordan. Good morning, everyone, and thank you for joining us today. Earlier this morning, we filed our quarterly report for the period ending 06/30/2026, on Form 6-K with the SEC and on SEDAR plus. Our remarks today may contain forward looking statements. There are risks that Telesat's actual results may differ materially from the results contemplated by the forward looking statements as a result of known and unknown risks and uncertainties. For a discussion of known risks, please see TeleSat's annual report and updates filed with the SEC Telesat assumes no responsibility to update or revise these forward looking statements. I would now like to turn the call over to Daniel S. Goldberg Telesat's President and Chief Executive Officer. Daniel S. Goldberg: Okay. Thanks, James, and good morning, everyone. Thanks for joining us. I will start with a few words about the business, and then I will hand the call over to Donald to speak to the numbers in more detail, and we will then open the call up to questions. Just last week, we announced we signed the first contract in the escape program We are very pleased to have secured that key strategic opportunity to provide such a critical capability to the Canadian Armed Forces. To support the range of important missions and interests that they have and that Canada has in the Arctic. With that contract announced, and an expanded Lightspeed constellation fully funded for an accelerated rollout, we are very well positioned to execute on the wide range of additional opportunities for Lightspeed that we are now engaged on. Including in the defense and government segments. Allowing us to build on our already substantial $5.6 billion Telesat Lightspeed contractual backlog. Our strong confidence in our future prospects caused us to raise our publicly available revenue and EBITDA forecast for Lightspeed, which I hope you all saw last week. In addition to the strong commercial traction we are getting, we have also been making excellent progress on the technical and operations fronts for LightSpeed. On the constellation development side of things, we signed a firm contract with MDA for 69 additional satellites bringing the fully funded and committed constellation size to 225 satellites. We have secured almost all the launch capacity we need and expect to sign an agreement for the final Falcon 9 rocket required to complete the deployment of the 225 satellite constellation in the near future. And we continue to expect global commercial availability in the first quarter of 28. In light of the expansion of the constellation, you may have noticed in today's earnings release that we updated our 2026 Lightspeed total investment guidance for 2026. Which includes both OpEx and CapEx associated with delivering the global network. Our prior guidance was CAD 1 billion to CAD 1.2 billion of investment this year, which we have now brought up to CAD1.3 billion to CAD1.5 billion a $300 million increase to the bottom and top end of the range. In our GEO segment, first quarter results came in largely as we had expected with most of the year over year decline coming from non renewals and lower revenue renewals in our broadcast activities and to a lesser extent in reductions in services for fixed broadband customers. That was partially offset by new contracts for broadband services or commercial airline broadband connectivity. As you may have noticed, our GEO backlog increased during the quarter. Due primarily to a meaningful term extension of 1 of our broadcast video contracts. Evidence of our continued efforts to maximize the value of our existing GEO satellites, lock in long term commitments where we can, to improve cash flow visibility in the legacy business, all while retaining careful cost controls to mitigate the impact of ongoing revenue pressures in the Geo segment. During the quarter, 2 of our GEO satellites, Anik F4 and Telstar 14R, reached the end of their useful lives. And were retired from service. While we have been able to transfer nearly half the traffic from these satellites on the certain of our remaining GEO satellites, The decommissioning of these satellites will still be a headwind for the balance of this year and into the future. We had anticipated this impact. We knew that these satellites were going to be retired this year. When we provided our Geo segment guidance for 2026, and we are reiterating that revenue and EBITDA guidance today. Staying with our Geo segment, we were pleased to see late last month, the FCC's report and order to repurpose a 160-megahertz of C-band satellite spectrum for terrestrial wireless use. Under the terms of the report and order, Telesat is due to receive US$189 million in incentive payments for our role in freeing up that valuable spectrum We are actively working to develop a plan to ensure that spectrum is cleared prior to the transition deadlines in 2030 and 2031. We successfully cleared C band spectrum in the prior FCC C band reallocation proceeding and we are confident we will be successful this time as well. Lastly, for Telesat Geo, we have entered into a new term loan agreement with a third party lender for US$120 million to be used for general corporate purposes. These new funds will provide Telesat with greater financial resources to support our legacy business. We remain heavily focused on the upcoming Telesat GEO debt maturities and achieving a fair and balanced consensual outcome for all of our stakeholders. So with that, I will hand over to Donald, who will speak to the numbers in more detail. And then we will open the call up to questions. Donald Tremblay: Thank you, Dan, and good morning, everyone. My prepared remarks today will focus on highlights from this morning's press release and filing. In the second quarter of 26, we reported consolidated revenue of $79 million adjusted EBITDA of $22 million and net loss of $559 million Consolidated net loss for the quarter was impacted by an increase of $475 million in the fair value of Telesat Lightspeed warrants, and the weakening of Canadian dollar during the quarter impacting the value of our U.S. dollar-denominated debt. The warrants are now valued at more than $1.3 billion reflecting the expansion of the constellation to 225 satellites and our ability to accelerate the execution of our plan. Interest expense for the quarter totaled $50 million down from $54 million in the second quarter of 25, due to lower interest rate on our term loan. Interest relating to the Telesat Lightspeed totaling $18 million during the second quarter of 26. Was capitalized to the project compared to $8 million for the same period last year, as the amount outstanding on the Telesat Lightspeed financing has increased to $974 million at the end of the quarter, including capitalized interest of $54 million Our GEO segment results were in line with our expectations during Q2. We generated $78 million in revenue, down 26% or $28 million compared to the same period last year. For the year, revenue of our GEO business segment was $184 million, also down 26% from last year. The majority of the revenue decline during the quarter and for the year was in our broadcast segment, driven by the expiration of contract for service on our Anik F4 satellite in 2025, and lower capacity and rate as part of the renewal of a contract on Anik F5. In our enterprise segment, the decline was primarily driven by lower revenue from our Xplore contract renewed in October 2025. These decline were partially offset by new contract added in 2025 in our aviation vertical by our global commercial team. The utilization of our satellites was 60% at the end of Q2, I will note that this utilization figure benefit from the retirement of our Telstar 14R and Anik F4 satellite during the quarter. If we adjust for these retirements, Utilization declined about 2 percentage points from the end of Q1. The backlog of our GEO segment rose to $900 million at the end of June, due in large part to the extension of 1 of our broadcast service contract for 5 years during the quarter. Adjusted EBITDA for our GEO segment was $43 million for the second quarter, down $37 million compared to last year. Driven by lower revenue and higher expense related to our debt refinancing process. Our second quarter 26 results include approximately $14 million in costs related to our debt refinancing up approximately $7 million compared to the same period last year. Adjusting for these expense, our GEO adjusted EBITDA would have been $57 million during the period, down 30% from last year. For the year, adjusted EBITDA totaled $119 million after excluding expense relating to our refinancing process. As a result of this performance, for the first half of 26, we are reiterating our GEO business segment guidance for the year of revenue of $300 million to $320 million and adjusted EBITDA of $210 million to $230 million excluding debt refinancing and related litigation expenditure. Turning to the cash and liquidity position of our GEO business segment. Cash at the end of Q2 was approximately $160 million and we announced today we borrowed US$120 million under a new term loan providing meaningful additional cash for Telesat GEO. We invested $165 million in the Telesat Lightspeed program during the second quarter of 26, including $145 million in capital expenditure and $20 million in non capitalized labor and other operating costs. For a total investment of $336 million this year. Given the accelerated expansion of the constellation deployment from 156 to 225 satellites we announced last week, we now expect full year investment in the program to be between $1.3 billion to $1.5 billion up from $1 billion to $1.2 billion guidance we provided earlier this year. With the incremental investment funded by pre-service payment to be received from the government of Canada. In the LEO segment, we ended the quarter with over $200 million in cash on hand. This cash, combined with $1.6 billion in availability under our Telesat Lightspeed financing, US$325 million from our vendor financing, and US$1.5 billion in milestone payment related to the ESCAPE contract is expected to fully fund the Telesat Lightspeed project including US$500 million of contingencies. Until it achieved global commercial service around the end of Q1 of 28. Our backlog for Lightspeed increased significantly to approximate $5.6 billion with the increase coming largely from the 15-year ESCAPE contract we announced last week. We also signed a 5-year contract with Northwestel in early Q2 for rural broadband connectivity in Canada. Before I conclude my prepared remark, I would like to confirm that we are in compliance with all government in our credit agreements and indenture. I will now turn the call back to the operator for the Q&A. Operator: Thank you. As a reminder, if you would like to ask a question in today's call, simply press star. and 1 follow-up question. We will take a brief moment to compile the Q and A roster. Your first question comes from the line of Caleb Henry from Quilty Space. Your line is now live. Caleb Henry: Hi, guys. Okay. First question is actually on the future expansion of the Lightspeed contract or excuse me, Lightspeed Constellation. On the previous call, it was mentioned that there is going to be X in UHF band, which you are partnered with MDA on. Can you talk about the role that Telesat is playing as a partner there? Is that capacity that you also anticipate being able to sell? Or is Telesat mainly managing the constellation on behalf of the Canadian government? Daniel S. Goldberg: Hey, Caleb. Good morning, and thanks for the question. So maybe just a quick step back on Escape and we have talked a little bit about this before. it is all about Arctic satellite communications capability. there is a military Ka-band component of that. And as we have, you know, announced before, that is going to be provided using Lightspeed, and we have expanded the constellation to meet those requirements. So that is Number 1. Number 2, is there will be also a UHF and expand capability that is expected to be in MEO That is a constellation that will be primed by MDA and Telesat will be a subcontractor to MDA And so there is still more work that needs to be done on that. More work with the government of Canada, DND, you know, the Canadian Air Force to define exactly what that capability is going to look like. And contracts need to be in place. We have got a teaming agreement with MDA on that. Telesat and MDA have been you know, already, we announced this a while ago, named as kind of strategic partners for that capability. it is not my expectation that we are gonna end up owning that MEO constellation. Would we have some ability to resell excess capacity on it? I do not know. that is not something that we have explored at this point in time. And it is gonna take it is gonna take a little while from here. We have gotta do definition work and whatnot. I think at a minimum, what Telesat will be doing in connection with the MEO constellation again, as a subcontractor to MDA is providing you know, network integration expertise, ground segment expertise, overall Escape integration. You got the Mil-Ka. You have got the UHF. You have got the X band. that is all got to operate as an integrated network. So in any event, I do think it is a meaningful opportunity for Telesat. When we talked about the Escape contract that we announced just last week, we are pretty clear that is an initial contract. We expect follow on contracts probably next year for even still the military Ka-band. That it will be more about network integration user terminals, and other ground segment. And that, you know, we expect to be a meaningful set of contracts for us. And then on MEO, that work's going to take, probably a couple of years to get in place. But here again, you know, our expectation is we will have a long term role in supporting that constellation. And that represents a very material revenue opportunity for the company. So I hope that is helpful. Caleb Henry: That is. And then my 1 follow-up, also, harking back to last week's call. The presentation had a couple of mentions of, Relay as an emerging service area. I was wondering if you could talk a little bit about the forecast for Relay revenue and sort of when you see that turning on in some of the drivers? Daniel S. Goldberg: Yeah. We so, you know, when we talk about Space Relay, that is really about leveraging the Lightspeed constellation to communicate with other satellites. Those could be satellites, you know, Earth observation, for instance, and we have the ability to connect those satellites into our global backbone. So many of those satellites today they are taking images. They are collecting data. But the user, the end user has to wait for the satellite to pass over a gateway that data gets downloaded, and only then is it available to the end user we can get that data back to the users in real time. If that satellite is connected to the Lightspeed constellation, it can collect the data. It can instantly relay that data to Lightspeed, and we can terminate that traffic anywhere on the face of the earth in milliseconds. And so we think that is very powerful. We are already doing work with NASA to demonstrate this capability. And we have we have disclosed that NASA contract before, and we have been engaged with quite a few potential customers for this, earth observation companies, other governments, You know, governments have a lot of those satellites in orbit. Collecting valuable data with you know? And they want access to that information as fast as possible. So when you know? Oh, and I should also say that our optical intersatellite links meet the US government's SDA standard. And so and so that opens up, you know, we think a big opportunity because other operators will have their optical links also meeting those standards, which means we can pass traffic to 1 another. So, you know, when you have seen our forecast that revenue you know, ramps I do not have it in front of me. It sort of ramps gradually but we are bullish on that opportunity for defense applications, for civil applications, We think We think there is great promise there. Certainly, when you hear others talk about data centers in space, you know, that is that is that is another opportunity If there are data centers in space, you gotta get you know, that it needs to be connected back to the Earth. And so when we think about space relay, it covers a pretty wide range of applications that we are quite bullish on. Operator: Your next question comes from the line of Edison Yu from Deutsche Bank. Your line is now live. Analyst: Hey, good morning. Thanks for taking our questions. First, I want to ask you about your latest thoughts regarding D2D. You probably saw, you know, MDA addressed the, you know, the space ran proposal. Is that something that you would take part in? Have you had discussions around a potential role in operating such a constellation? Daniel S. Goldberg: So I would say this on D2D. And maybe the first thing I would say is you know, we are very, very focused right now on executing on Lightspeed. it is the biggest project in Telesat's history. it is the biggest project space project in Canada's history, and is we see a huge opportunity there and but we need to stay focused on executing that And we are But that said, we are, you know, pretty well acquainted with what know, the various operators around the world and here in Canada are doing around D2D. We have had conversations with a number of parties about what role Telesat could potentially play in a D2D constellation. And so, anyway, I will not offer any more specifics than that. Other than to say it is not in any sense our principal area of focus. But opportunistically, if we can you know, play a role in a D2D network where we can add value that can be accretive to Telesat. Does not distract us from, you know, our top priorities. Yeah, you know, that is something that we would think about. Understood. I wanted to also ask you just going back to LightSpeed. Obviously, you put out those numbers, which I am sure were very positive. Can you maybe talk about the underlying assumptions a bit more? Outside of the big change in mix to government and military. Did you have a lot of movement in terms of, like, the pricing assumptions, the price per bit, kind of-- yeah. Just can you maybe kind of double-click on just the some of the underlying assumptions that went into those forecast that may have changed versus 3 years ago? Yeah. I would say fundamentally, there is certainly been, as you noted, meaningful change in mix When we first started down the path of Lightspeed, the world, you know, was pretty different place than it is today in these geopolitical shifts. And some of these conflicts that are ongoing around the world have opened up this you know, very significant opportunity for, defense and kind of sovereign requirements to respond to that and to respond to what the government of Canada was needing for their ESCAPE program, we changed our frequency plan to add the military Ka band. And so in any event, so that in and of itself has a big impact on you know, our expectations around revenue mix because obviously, the Mil-Ka is going to be used for those government defense and sovereignty applications. Beyond that, though, yeah, we updated all the assumptions, obviously, underpinning the plan with respect to pricing, with respect to take up, with respect to you know, geographic distribution and whatnot. But there were there were not I would say, wholesale changes in terms of our expectations around the pricing environment. We know that the market for satellite delivered broadband connectivity is going to be a competitive market. We always knew that. We have we have modeled you know, downward price pressure over time throughout the plan. We did that previously. You know, we can that is still embedded in our in our current plan. We sort of sharpened our pricing assumptions in some instances down, in some instances up. Based on you know, kind of the more current information that we have. So, anyway, it is in that is that is how we went about doing it. I hope that was helpful. Yeah. That was. Thank you. If I could just sneak in just 1 financial 1. Just in terms of the you know, obviously, you got the extra the debt. Any update on when we can expect any sort of update on the near-term maturity? Just in terms of the negotiations and how we should think about that? Yeah. You know, here's what I would say about that. And, obviously, and everyone on this call knows it, we are limited in terms of what we are able to say about the upcoming maturities But what I can say is it remains a key priority. It always has been throughout the year. Our focus working with our advisers is to reach consensual outcome with the legacy lenders prior to the maturities coming due. that is something that we are very focused on and doing it in a way that is yeah, fair and balanced for all the stakeholders of the business. Including, obviously, the lenders. So that is what our focus has been. Our focus remains that. We, you know, just given the nature of these kinds of processes, there is only so much that we can say about it. But obviously, as soon as we have a material update that we can share we will. But that is you know, that is kind of the status at this point. Operator: Your next question comes from the line of David McFadgen from ATB. Your line is live. David McFadgen: Hi, guys. Yeah. A couple of questions, if I may. So I see that you increased the warrant valuation quite a bit. I was if you could tell us what you are actually valuing LEO at to get to that warrant evaluation. And then secondly, when do you think you would be able to announce some more defense customers like some other NATO countries buying some capacity on Lightspeed? Thank you. Daniel S. Goldberg: Thanks for the questions, David. So on, trying to extrapolate the value of Lightspeed from the warrant value, We are we are not gonna do that for folks. But you are absolutely right, though. You know, the value of the warrants has gone up you know, by more than 50%, and that is totally a function of the fact that we got the Escape contract done. We have got this you know, very significant backlog now. On Lightspeed. We have been able to accelerate you know, our expectations around revenue and EBITDA. Take up commensurate with us accelerating the expansion of the constellation. And so anyway, I mean, that is obviously a positive sign for the business. it is good news if you are a Canadian taxpayer because of the Government of Canada and the Government of Quebec have warrants in the Lightspeed projects. So anyway, and I am no sophisticated financial analyst. You are. You can probably you know, working backwards, you know, make your own calculations about what that might imply for the value of Lightspeed, but we are not gonna do it for you. So that was 1. And then on your question about further defense opportunities and when we would be in a position to announce them, it is always tricky You know? I mean, escape itself, you know, we laugh about this a little bit. You know, we bid on that originally in 2008. We always knew it was a question of when and not a question of if. If someone had told me in 2008, it would take 18 years I would have been surprised. But I do not expect the opportunities that we have in the pipeline for Lightspeed to take 18 years because given the nature of the world right now, the customers that we are talking to, they want this capability as soon as possible. And so we are having real meaningful concrete opportunities with I would say, you know, sovereign customers about using Lightspeed. it is always hard to handicap just how long those things will take. My expectation is by the end of next year, our backlog will be meaningfully higher because of my confidence, our confidence about converting things that we have in the pipeline today into firm, you know, take or pay contracts like Escape, you know, is it possible to get something more done by the end of this year? Recognizing that, you know, we are already halfway through August. I do not know. Maybe. I would not I would not foreclose it, but I sure would not you know, telegraph that we have got high conviction about doing that. But we do have higher conviction about getting that done between now, again, and the end of next year before you know, Lightspeed even goes into full commercial service. So that is our expectation. But I gotta say, you know, we never gave backlog guidance for this year. I think at most, I would have said we expect, you know, backlog to be some multiples higher at the end of this year than it was, you know, at the beginning of this year. And there, you know, we are very pleased sitting here today having gotten Escape. We signed the Northwestel contract. We have very positive, significant opportunities still in the pipeline above and beyond the incremental meaningful opportunities with Escape. So we are very bullish about our ability to meaningfully grow backlog from here even before we enter commercial service. David McFadgen: Would it be possible to squeeze 1 more in? Daniel S. Goldberg: Sure. So I saw you got that additional loan and the GEO sub. what is the collateral for that additional loan? So I would say this. Like, we are we are not gonna get into the weeds of it on this call. But I will say at the highest level, under our covenant package in the and I am just talking about in the legacy borrowing. So the term loan and the notes that we have out there. We obviously had scope to raise this incremental funding. And so we were we were pleased to get it done. It just gives us more financial resources to support the legacy business, which here again, I think is a good thing for the business. And so and I will say this also. We have we have provided some disclosure about this loan in the release and in the financial statements. And in the fullness of time, we will we will, you know, file the loan agreement as well. And so you know, that will be out there. Operator: Your next question comes from the line of Mayor Yaghi from Scotiabank. Your line is live. Analyst: Great. Thank you for taking my question. I have a few. Maybe I will start with you know, the escape contract that you signed. Maybe if we can go back. It was great to see the contract being finalized. I wanted to ask you specifically the new satellites that you are, going to deploy, following that contract being signed, are they in any way different technologically speaking in terms of frequencies that they operate under versus the initial 56. Daniel S. Goldberg: You know, thanks for the question. No. They are identical. To the first 156 And so what is good about that is they are gonna, you know, just follow immediately, down the, assembly line from the 156. So it means that nothing about adding those 69 additional satellites is going to slow down in any way the delivery of those first 156, which is why you know, we are standing behind our target entry date in terms of when we go into global service. And then those next 69 just follow right on from the initial 156. So yeah, all 225 will be identical. Okay. Okay. So given this, I was trying to figure out, you know, when I look at the revenue run rate, of the program beyond the initial spike in cash payments upfront I was wondering why do you need the new satellites? Because I was trying to figure out the capacity that the new contract is gonna consume out of your existing 156 satellites. On the mil-Ka band, which is 25% of your spectrum, allocation, does not seem to me like it is gonna use up much of that 25% anyway. So why did we move in the direction of putting up more satellites, right away instead of waiting as you know, after commercial launch and then putting up more satellites. Yeah. No. it is a great question. And there are a couple of reasons. So 1, when we converted the frequency plan for the first 156, absolutely the right thing to do given all the opportunities we see with defense users. And how much demand we expect there will be for this you know, very advanced military Ka-band capability. So we are, you know, excited about that. But at the same time, we took 25% of the frequencies that were going to be available for our commercial customers sort of off the market. And so and we see huge opportunities there, and we did not want to reduce our capacity that could support those commercial verticals like broadband connectivity for the airline industry, broadband connectivity for the maritime sector, broadband connectivity for rural broadband, enterprise users around the world, and the like. And so what was great about accelerating the, you know, expansion of the satellites because we our plans were always to have more satellites than 156. We were just going to fund the expansion satellites with the cash flow from the first 156. So it was not a view that we will not see demand for that capacity. We just did not have enough money to, grow the constellation as much as we wanted to. And so with this deal with Escape, we are able to restore the 25% of commercial capacity that we had diverted for the defense market, number 1. 2, accelerate the satellites that we always need that we always knew the market would need. And then I would say, lastly, just having more satellites in the constellation means more resiliency, more redundancy, better performance of the network. So it was just a big win. Operator: Your next question comes from the line of Walter Piecyk. From LightShed. Your line is live. Analyst: Thanks. Hey, Daniel. Just wanna go to the expansion. And specifically Falcon 9. Are these contracted? Because I know SpaceX has talked about stop taking third-party bookings beyond 2028, and I assume that extension will go beyond 2028, so I am just curious if these things are contracted and whether they have to be on Falcon 9 or you are going to look for other launch opportunities. Daniel S. Goldberg: So to launch the 225 satellites, we need 15 rockets. We already have 14 under contract with SpaceX We had, you know, sort of 3 for lack of a better term, surplus rockets that we did not need for the 156. But when we added the 69, we needed those 3. So those got kind of brought forward. And then we needed 1 more. And so that and 1 more Falcon 9. And we like using Falcon 9. Super reliable. They obviously, SpaceX launches at a very rapid cadence. We are very focused on getting the constellation deployed as quickly as possible. So that is the right launch vehicle for light speed. And so we needed 1 more rocket. So we have been in touch with our friends at SpaceX. They have agreed to make that rocket available to us. We are you know, getting the launch services agreement in place to do that. But I would also note, it is our expectation that all of our launches, for all 225 satellites will get done by the end of 28. So that is the plan. that is good to know you are locked and loaded. I know I have asked this question many times over the last couple years, so I suspect I know the answer. I am just gonna ask again because there is just a lot of talk in the market about SpaceX out looking for additional spectrum. there is companies out there that own spectrum. Their stocks are really moving. Any kind of let's call it, request from potential customers for you to layer in additional spectrum to the satellite that you have developed before you actually get these launches going. So these first 225, we are done. And by done, I mean, the design's done. The hardware's been, you know, ordered, and satellites are already, at MDA's new factory. Like, we are we are we are going hard down the path. We have got and these are great satellites. I mean, it is and with the right frequency plan with the military Ka-band, we feel really good about that. So we do not have any scope at this point in time without taking some massive delay, which we will not do, to make modifications to these 225. So the ship has sailed on those for future satellites, and our expectation is absolutely the Lightspeed Constellation is going to grow over time. That will be a response to demand that we are seeing out there in the market, but we are very bullish on that. We are already, doing a fair amount of work around here. As to what our next generation of Lightspeed satellites will look like. Could those accommodate other frequency bands, hosted payloads, absolutely. But not these first 225. Operator: Your next question comes from the line of James Ratzer from New Street Research. Your line is now live. James Ratzer: Yes. Great. Yeah. Daniel, thanks very much for taking the questions. So I have a couple, please. Just the first 1 was just coming back, if we can, to the refinancing coming up. I think you mentioned you wanted to be kind of fair, balanced, and consensual. Was reading, though, the kind of court document from July 27, and that seemed to suggest that you might also be considering a Chapter 11 process as well. So I was wondering if you could just kind of respond to that if that is something you are seriously thinking about at this stage as 1 outcome? And secondly, just coming on to the $120 million of new financing you have just received, Can you just let us know where in the stack that ranks? Is it kind of pari passu with the senior debt or the unsecured? So just be interested to know where that sits in the stack. Many thanks. Daniel S. Goldberg: Okay. Thanks, James. The filing, I am not sure what you are referencing to what you are referencing in terms of you know, drawing a conclusion that we are entertaining, you know, a bankruptcy filing. that is not the case at all. Our focus is strongly no. Just to say, our focus is strongly on refinancing the debt prior to the maturities achieving a consensual outcome. that is the focus. We are spending a lot of time and a lot of energy to achieve that outcome, number 1. And then on the $120 million where it fits in, here again, like, the on this call this morning, the plan is not to go into the weeds on that. As I said, we will share more information about that. You know, we have said that the borrowings were made you know, within a nonguarantor subsidiary of Telesat Geo. So, you know, we are over there in the legacy, you know, debt silo. And as I said also, the loan agreement will get filed and made available. And so for now, we will leave it at that. James Ratzer: Got it. You cannot say, Daniel, whether it was linked to the new C-band proceeds that you are know you are going to be receiving? Or is that something that is separate from the new debt you just raised? Daniel S. Goldberg: Yeah. So there we you are right. I will not say But I will note that, obviously, having that FCC order come out and tell us that being eligible for those proceeds subject to our meeting, our obligations to clear that spectrum on time. that is obviously a very accretive development for the business. Got it. No. that is clear. Thank you very much. Operator: Thank you. Your next question comes from the line of Christopher Quilty. From Quilty Space. Your line is live. Chris Quilty: Thanks. Just a follow-up on the Escape program. Is that going to require an incremental ground segment? Or is that something that you know, the existing Lightspeed ground segment you can sort of lease back to the to the customer. And just more broadly, where do you sit in terms of the ground segment build out? And I think you had some past deliberations around bringing in outside financing or not for the ground segment. Where do you stand on that? Daniel S. Goldberg: Yes, Christopher, thanks. We are making really good progress on rolling out the ground segment. So we are talking about landing stations here. So you know, we have I am looking at my technical colleague, at least 3 or 4 landing stations already under development here in Canada. And we have been you know, installing, you know, the big gateway antennas, doing tests that is going well. We have announced that we have got some ground stations being built for us in Australia. We did the deal with Orange in France at their first night teleport. So that is being it is the word I am looking for. Commission. Thank you, Michel. Commission right now. Sure. We are making really good progress there. We have been doing testing on the antennas, and we gave Intellian a big contract to build the landing station antennas. And so we have been commissioning those and doing the testing. So that is all going very positively. As to working with third parties, to support the landing stations, I would say absolutely that is something we are receptive to and it is something that we have always done. You know, even our geostationary the ground stations around the world that support our GEO satellites. Some of those we own, including some in Canada, 1 in The US. But many of them, we are relying on third party teleports to provide the service with light speed. And by the way, this is not unique to Telesat. it is what everyone does, including Amazon, Starlink, OneWeb, I believe. Certainly, you know, SCS, we all make use of third party teleports. We might own some of the equipment that sits at those third party teleports. They kind of host that equipment for us. And provide us a service. And we are not thinking about it any differently with respect to Lightspeed, and there is some real benefits if we work with third party providers. We do not need to own teleports all over the world. That would not be a good use, I think, of our capital or time. And so we have already are working with some third parties in, I will say, Australia, Europe, I mentioned. We are having some conversations with folks in Asia. Because we need landing stations there too, and we are receptive to doing something I would say, kind of broader, more comprehensive with 1 or more third parties if that is something that would accelerate our rollout, if that were financially accretive, Always, of course, provided that they can provide the mission critical services we need and do it in a secure environment given the nature of the traffic that we will be supporting on Lightspeed. Chris Quilty: And is that something that would likely happen this year or slipping out into next year? Daniel S. Goldberg: Well, we are I mean, we are rolling out landing stations. We have to support our upcoming launches. And so, you know, we are we are we have got at least, you know, 8-plus teleports, landing stations, under development, various stages right now. Some of them are already done. Some of them are in flight. We will be doing more. Even over the course of this year. And so, yeah, you know, we expect to be able to share more information about our plans for that. Great. Thank you. Operator: Thank you. That concludes our question-and-answer session. I would like to turn the call over to Daniel S. Goldberg for closing remarks. Daniel S. Goldberg: Okay. Well, operator, thank you very much. Maybe I would just say in some, I mean, we are about 2-thirds of the way through the year. And we feel very good about how the business is performing, how we are executing. Where we reiterated our guidance for GEO, Last week, we announced the largest contract in Telesat's history with the Escape contract, the pipeline for Lightspeed is very, very significant. We have, you know, $5.6 billion of backlog at this point in time with Lightspeed. And between the further opportunities with Escape, the other sovereign opportunities that we have and commercial opportunities that we have in the pipeline. We are actually more bullish than ever about our prospects. The constellation has expanded. it is accelerated. it is fully funded. We have US$500 million in contingency to support Lightspeed, which we are very focused on not needing to dip into. The GEO business actually is performing pretty well year to date. We actually grew our backlog in GEO this past quarter, which we have not done for a while. I think that shows some of the resiliency around that business and improved cash flow visibility when we are able to grow it, certainly the announcement by the FCC recently on the C band process and Telesat being eligible for US$189 million of proceeds on the back of the $344 million in proceeds that we received from the earlier proceeding, which gives us confidence that we will secure this $189 million I think we end Q2 and head into the rest of the year really optimistic and bullish about where the business is going and our prospects. So in any event, thank you all for joining us. This morning, and we look forward to chatting with you when we issue our third quarter numbers. So thank you, operator. Operator: This concludes today's meeting. You may now disconnect. Before you buy stock in Telesat, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Telesat wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Telesat (TSAT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Telesat Corporation? Here are five stocks we like better. Telesat reported a CAD 559 million second-quarter net loss, driven largely by a CAD 475 million increase in the fair value of Lightspeed financing warrants and foreign-exchange effects on U.S.-dollar debt. Revenue was CAD 79 million and adjusted EBITDA was CAD 22 million. Telesat expanded its fully funded Lightspeed constellation to 225 satellites from 156, increasing contractual backlog to approximately CAD 5.6 billion. The company raised 2026 Lightspeed investment guidance to CAD 1.3–1.5 billion and still targets global commercial service by the end of the first quarter of 2028. The legacy GEO business remained under pressure, with second-quarter revenue down 26% to CAD 78 million because of lower broadcast and enterprise revenue. Telesat maintained its full-year GEO guidance, while reporting a CAD 900 million backlog and expecting CAD 189 million in FCC C-band clearing payments. Telesat (NASDAQ:TSAT) reported a second-quarter net loss of CAD 559 million as the satellite operator continued to invest in its Lightspeed low Earth orbit network, while its legacy geostationary-orbit business faced ongoing revenue pressure. Chief Financial Officer Donald Tremblay said the quarterly loss reflected a CAD 475 million increase in the fair value of Telesat Lightspeed Financing Warrants and the effect of a weaker Canadian dollar on the company’s U.S. dollar-denominated debt. The warrants were valued at more than CAD 1.3 billion at quarter-end, following the expansion of the Lightspeed constellation and an accelerated deployment plan. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Consolidated revenue for the second quarter was CAD 79 million and adjusted EBITDA was CAD 22 million. Interest expense totaled CAD 50 million, down CAD 54 million from a year earlier, which Tremblay attributed to a lower interest rate on the company’s term loan. President and Chief Executive Officer Dan Goldberg highlighted Telesat’s recently announced initial contract under Canada’s Enhanced Satellite Communications Project – Polar, or ESCP-P. The program is intended to provide Arctic satellite communications capability for the Canadian Armed Forces. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand The agreement helped bring Telesat Lightspeed’s contractual backlog to approximately CAD 5.6 billion. Telesat also signed a five-year contract with Northwestel early in the second quarter to provide rural broadband connectivity in Canada. Telesat has expanded its fully funded Lightspeed constellation to 225 satellites from 156 satellites. Goldberg said the company signed a firm contract with MDA for 69 additional satellites, which will be identical to the first 156 and will proceed directly through the production line without delaying the initial deployment. → On Holding's Price Stumble May Be an Opening for a Company Built to Run The company has 14 Falcon 9 launches under contract with SpaceX and expects to sign an agreement for one additional Falcon 9 launch needed to deploy the full 225-satellite constellation. Goldberg said Telesat expects all launches to be completed by the end of 2028 and continues to target global commercial availability around the end of the first quarter of 2028. Annual Lightspeed investment guidance was raised to CAD 1.3 billion to CAD 1.5 billion for 2026, from a prior range of CAD 1 billion to CAD 1.2 billion. Tremblay said the higher investment reflects the accelerated constellation expansion and will be funded by pre-service milestone payments from the Government of Canada. Telesat invested CAD 165 million in Lightspeed during the second quarter, including CAD 145 million of capital expenditures. Total Lightspeed investment reached CAD 336 million in the first half of 2026. The LEO segment ended the quarter with more than CAD 200 million of cash. Telesat said available Lightspeed funding includes CAD 1.6 billion under its financing facility, CAD 325 million in vendor financing and CAD 1.5 billion in ESCP-P-related milestone payments. The company said those resources are expected to fully fund the project, including CAD 500 million of contingencies, through global commercial service. Goldberg said Telesat expects government, defense and sovereignty applications to represent a more significant portion of Lightspeed’s anticipated revenue mix than previously envisioned. The company changed the constellation’s frequency plan to include military Ka-band capacity, responding to Canadian government requirements and what Goldberg described as growing defense-related demand. The expanded constellation is intended to restore commercial capacity that had been redirected toward military Ka-band use, while also adding redundancy, resiliency and network performance. Goldberg said Telesat sees commercial opportunities in aviation, maritime, rural broadband and enterprise connectivity. Telesat is also working with NASA to demonstrate space-relay capabilities that would allow other satellites to relay data through Lightspeed’s global backbone in near real time. Goldberg said the company sees potential demand from Earth-observation businesses and governments, and noted that Lightspeed’s optical inter-satellite links meet the U.S. government’s SDA standard. Regarding Canada’s separate UHF and X-band component of ESCP-P, Goldberg said MDA is expected to lead a medium Earth orbit constellation, with Telesat serving as a subcontractor. Telesat expects to provide network integration, ground-segment expertise and overall integration among military Ka-band, UHF and X-band capabilities. The company has not determined whether it could resell any excess capacity from that MEO system. Telesat’s GEO segment generated CAD 78 million in second-quarter revenue, down 26% from the prior-year period. First-half GEO revenue totaled CAD 164 million, also down 26%. Tremblay said the decline was driven primarily by broadcast revenue, including the expiration of a Nimiq 4 service contract in 2025 and lower capacity and pricing associated with a renewed Nimiq 5 contract. Enterprise revenue also declined, largely due to a lower-revenue Explorer contract renewed in October 2025. New aviation contracts partially offset those pressures. GEO adjusted EBITDA was CAD 43 million in the quarter, down CAD 37 million year over year. Results included roughly CAD 14 million in debt refinancing costs. Excluding those costs, GEO adjusted EBITDA would have been CAD 57 million, down 30% from a year earlier. The company retired its Anik F4 and Telstar 14R satellites during the quarter. While it transferred nearly half the traffic from those satellites to remaining GEO assets, Goldberg said their retirement will remain a headwind through the rest of 2026 and beyond. Satellite utilization was 60% at the end of the quarter; excluding the impact of the retirements, utilization declined about two percentage points from the first quarter. GEO backlog rose to CAD 900 million, aided by a five-year extension of a broadcast service contract. Telesat reiterated full-year GEO guidance for revenue of CAD 300 million to CAD 320 million and adjusted EBITDA of CAD 210 million to CAD 230 million, excluding debt refinancing and related litigation expenses. Telesat GEO ended the quarter with approximately CAD 160 million in cash and entered a new CAD 120 million term loan agreement for general corporate purposes. Goldberg said the company remains focused on reaching a consensual refinancing outcome for upcoming GEO debt maturities and said a bankruptcy filing was not under consideration. The company also said it expects to receive CAD 189 million in FCC incentive payments for clearing C-band spectrum for terrestrial wireless use, subject to meeting transition deadlines in 2030 and 2031. Goldberg said Telesat had successfully completed a prior C-band clearing process and was confident it could do so again. Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat's infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications. In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Telesat Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Secured the first contract for the ESCAPE program with the Canadian Armed Forces, providing critical Arctic communications and driving a $5.6 billion Lightspeed backlog. Expanded the fully funded Lightspeed constellation from 156 to 225 satellites to meet increased defense and sovereign requirements while restoring commercial capacity. Attributed GEO segment revenue declines to non-renewals in broadcast and fixed broadband, partially offset by growth in commercial aviation connectivity. Increased GEO backlog through a meaningful five-year term extension of a broadcast video contract, improving long-term cash flow visibility for the legacy business. Retired two GEO satellites, Anik F4 and Telstar 14R, at the end of their useful lives; while half the traffic was transferred, their decommissioning remains a near-term headwind. Confirmed eligibility for US$189 million in FCC C-band incentive payments, leveraging previous experience in spectrum clearing to meet 2030-2031 deadlines. Secured a new US$120 million term loan for the GEO segment to provide additional financial resources while focusing on upcoming debt maturities. Increased 2026 Lightspeed investment guidance to CAD 1.3 billion–1.5 billion to account for the accelerated deployment of 69 additional satellites. Maintained the target for global commercial availability of the Lightspeed network in the first quarter of 2028 despite the expanded constellation size. Anticipates all 15 required Falcon 9 launches for the 225-satellite constellation will be completed by the end of 2028. Expects meaningful backlog growth by the end of 2027 driven by sovereign and defense opportunities currently in the pipeline. Reiterated full-year 2026 GEO segment guidance with revenue of $300 million–$320 million and adjusted EBITDA of $210 million–$230 million. Reported a $475 million increase in the fair value of Lightspeed warrants, now valued at over $1.3 billion, reflecting the expanded constellation and accelerated plan. Incurred $14 million in debt refinancing costs during Q2, a $7 million increase over the prior year, impacting GEO adjusted EBITDA. Management remains focused on achieving a consensual and balanced outcome for upcoming GEO debt maturities with legacy lenders. The ESCAPE contract includes US$1.5 billion in milestone payments, which are critical to the full funding of the Lightspeed project. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Telesat will act as a subcontractor to MDA for the UHF and X-band MEO portion of the ESCAPE program, providing network integration and ground segment expertise. Management does not expect to own the MEO constellation but views the integration role as a material long-term revenue opportunity. Space Relay leverages optical inter-satellite links to provide real-time data downloads for Earth observation satellites, bypassing the need to wait for gateway passes. The service meets U.S. government SDA standards, opening opportunities for defense and civil applications, including potential 'data centers in space'. Updated forecasts include sharpened pricing assumptions that account for a competitive satellite broadband market and downward price pressure over time. The revenue mix has shifted significantly toward government and military segments due to geopolitical changes and the addition of military Ka-band capacity. Telesat is developing at least 8 landing stations globally, utilizing third-party teleports in Australia, Europe, and Asia to optimize capital use. Management is open to broader partnerships with third parties if they accelerate the rollout or are financially accretive while maintaining security standards.

OTTAWA, Canada, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three- and six-month periods ended June 30, 2026. All amounts are in Canadian dollars and reported under IFRS® Accounting Standards unless otherwise noted. “It’s been an eventful past few months for Telesat and I’m very pleased with the rapid progress the company is making and the strong traction we’re seeing with customers for Telesat Lightspeed,” commented Dan Goldberg, Telesat’s President and CEO. “In our LEO business, the most significant highlight was the announcement last week that we signed a $2.7 billion contract, including option periods, with the Government of Canada under the ESCP-P program to deliver secure Military Ka-band Arctic connectivity to the Canadian Armed Forces. As a result of this initial ESCP-P contract, we announced the expansion of the Telesat Lightspeed satellite constellation to 225 satellites, a 44% increase over our prior plan, which positions us to accelerate the growth of our LEO business while serving the evolving and mission critical requirements of defence and commercial customers. Telesat Lightspeed is fully funded and we remain on track to commence global commercial service around the end of Q1 2028.” “In our GEO business, our efforts to drive resilient cash flow from our existing GEO satellite fleet resulted in contract signings that led to a sequential expansion of our GEO backlog. We continue to be focused on maintaining strict cost discipline to mitigate revenue pressures. We were pleased to see the release of the U.S. Federal Communications Commission’s Upper C-Band Report and Order last month, under the terms of which we are scheduled to receive US$189 million in incentive payments as part of the process of repurposing 160 MHz of C-Band satellite spectrum for terrestrial wireless use.” “Finally, we continue to work to optimize the company’s capital structure and toward refinancing the Telesat GEO debt that starts to mature later this year. We recently borrowed US$120 million to be used for general corporate purposes at a subsidiary of Telesat GEO, providing us with further financial resources to support the business.” For the quarter ended June 30, 2026, Telesat reported consolidated revenue of $79 million, a decrease of 25% ($27 million) compared to the prior year, and adjusted EBITDA1 of $22 million, a decrease of 62% ($37 million) from the second quarter of 2025. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 45%. Telesat net loss for the quarter was $559 million compared to a $76 million gain in the prior year. The net loss was primarily due to non-cash losses associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants and, owing to a weakening of the Canadian dollar relative to the U.S. dollar, an increase in the Canadian dollar value of our U.S. dollar-denominated debt. In our GEO segment, revenue for the quarter was $78 million, a 26% decline ($28 million) from the same period in 2025. The revenue decline was driven primarily by non-renewals of certain broadcast contracts in 2025 and, to a lesser extent, reductions in services for fixed broadband customers, partially offset by new contracts in our aviation vertical. The GEO segment adjusted EBITDA for the quarter was $43 million, a 42% ($32 million) decline from the comparable period in 2025, reflecting lower revenue and higher expenses related to our debt refinancing process. Excluding the costs related to our Telesat GEO debt refinancing process, adjusted EBITDA for the GEO segment was 30% lower than the prior period and the adjusted EBITDA margin1 was 73%, compared to 77% in the same period of 2025. In our LEO segment, we invested $165 million in the Telesat Lightspeed program in the second quarter of 2026, reflecting $20 million in operating expense and $145 million in capital expenditure. For the six-month period ending June 30, 2026, Telesat reported consolidated revenue of $167 million, a decrease of 25% ($56 million) compared to the prior year, and adjusted EBITDA1 of $57 million, a decrease of 55% ($69 million) from the first half of 2025. Foreign exchange does not materially impact these year-on-year comparisons. Excluding the impact of higher expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA decreased 43%. Telesat net loss for the first six months of 2026 was $710 million, compared to a $24 million gain in the prior year. The variance was primarily due to a loss associated with an increase in the fair value of the Telesat Lightspeed Financing Warrants, a GEO goodwill impairment charge, lower adjusted EBITDA, and a foreign exchange loss associated with the impact of a weaker Canadian dollar on the Canadian dollar value of the company’s U.S. dollar-denominated debt. GEO segment revenue in the six months ending June 30, 2026, was $164 million, a 26% decline ($57 million) from the same period in 2025. GEO segment adjusted EBITDA for the six months ending June 30, 2026, was $98 million, a 39% decline from the comparable period in 2025. Excluding expenses related to our Telesat GEO debt refinancing process, adjusted EBITDA for the GEO segment was 30% lower than the prior period, and the adjusted EBITDA margin was 73% in the first six months of 2026, compared to 77% in the same period of 2025. Telesat invested $337 million in the Telesat Lightspeed program in the first six months of 2026, of which $40 million was recorded as operating expense and $297 million as capital expenditure. As of June 30, 2026, backlog2 for our GEO segment totaled approximately $900 million and LEO backlog2 totaled approximately $1.1 billion. Pro forma for the addition of the recently-signed ESCP-P contract, LEO backlog would be $5.6 billion. GEO satellite utilization was 60% at June 30, 2026, down approximately 2% from March 31, 2026, after adjusting for the impact of the retirement of Telstar 14R and Anik F4 during the quarter. Business Highlights In August, Telesat signed a $2.7 billion agreement, including option periods, with Canada's Defence Investment Agency to deliver Telesat Lightspeed Military Ka-band services to the Canadian Armed Forces for the Enhanced Satellite Communications Project – Polar (ESCP-P) program. The contract is for a period of 15 years, including option years, with service under the contract beginning once Telesat Lightspeed enters commercial service. The contract includes milestone-based payments totaling $2.0 billion which are expected to be received between Q3 2026 and Q4 2028. The milestone payments will principally be used to fund the expansion of the Telesat Lightspeed constellation from 156 to 225 satellites. In July, the U.S. Federal Communications Commission issued its Upper C-Band Report and Order, which established the framework for repurposing 160 MHz of Upper C-Band satellite spectrum in the U.S. for terrestrial wireless use. As set forth in the FCC’s Order, Telesat is eligible to receive US$189 million in incentive payments, contingent upon meeting the specified transition deadlines. The order also has a mechanism for the reimbursement of reasonable and necessary transition costs. In August, Telesat entered into a secured term loan agreement with an unaffiliated third-party lender, on arm’s length terms, under which Telesat borrowed US$120 million for general corporate purposes. The funds were borrowed by a subsidiary of Telesat GEO Inc. The borrower is a non-guarantor under the documents governing Telesat GEO’s existing term loan and senior notes. The loan matures in four years, subject to acceleration and a prepayment premium upon certain customary events, and accrues interest based on SOFR plus an applicable margin. Additional information about the loan agreement can be found in Telesat’s quarterly report of Form 6-K filed on or about the date hereof. 2026 Financial Outlook (assumes an average foreign exchange rate of US$1=C$1.38) Telesat is maintaining its GEO segment guidance provided in March: GEO revenue to be between $300 million and $320 million; GEO adjusted EBITDA1 to be between $210 million and $230 million, excluding non-recurring Telesat GEO debt refinancing costs; and Telesat is raising its Telesat Lightspeed spending forecast to reflect the expanded constellation of 225 satellites: Total spending on the Telesat Lightspeed program, including both expensed and capitalized costs, to be between $1.3 billion and $1.5 billion, an increase of $300 million from the prior range of $1.0 billion to $1.2 billion. Telesat’s quarterly report on Form 6-K for the quarter and six months ended June 30, 2026, has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC’s website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca. Conference Call Telesat has scheduled a conference call on Thursday, August 13th, 2026, at 10:30 a.m. EDT to discuss its financial results for the three- and six-month periods ended June 30, 2026. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Donald Tremblay, Chief Financial Officer, of Telesat. Dial-in Instructions: The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 2873917 followed by the number sign (#). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe). Webcast: The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/bx45s7mp. A replay of the webcast will be archived on Telesat’s website under the tab “Investors”. Dial-in Audio Replay: A replay of the teleconference will be available one hour after the end of the call on August 13, 2026, until 11:59 p.m. EDT on August 27, 2026. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 2873917 followed by the number sign (#). About Telesat Telesat Corporation (Nasdaq and TSX: TSAT) (“Telesat”) is a global satellite operator and leader in advanced satellite communications, redefining broadband connectivity through its Telesat Lightspeed Low Earth Orbit (LEO) network. Designed from inception for interoperability with enterprise and government applications, Telesat Lightspeed delivers secure, resilient, high-performance broadband connectivity with fibre-like speeds. Its advanced, software-defined architecture operates in both commercial and military Ka-band spectrum, enabling mission-critical communications with enhanced security and protection against evolving threats. Purpose-built to meet the most demanding requirements, Telesat Lightspeed provides telecom, enterprise, aviation, maritime and defence customers with unprecedented flexibility and control to dynamically manage their own services and deliver differentiated, end-to-end connectivity solutions worldwide. With nearly 60 years of innovation, engineering excellence and a collaborative approach to customer success, Telesat is uniquely positioned to deliver secure, scalable and future-ready connectivity solutions that help customers solve their most complex communications challenges and achieve mission success. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com. Investor Relations Contact:James Ratcliffe                                        +1 613 748 8424                        [email protected] Forward-Looking Statements Safe Harbor This news release contains statements that are not based on historical fact, including financial outlook for 2026, estimated timing of the commencement of global commercial service on Telesat Lightspeed, commencement of service under specific contracts, the impact of certain contracts on Telesat’s scale and capacity, the timing of milestone payments under certain contracts, the growth opportunities of Telesat Lightspeed, and potential eligible payments under the Upper C-Band Report and Order, are “forward-looking statements’’ and “future-orientated financial performance” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expect,”, “scheduled”, “continue,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Telesat undertakes no obligation to update the information made in this news release in the event facts or circumstances subsequently change after the date of this release. These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat’s current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation, the ability to refinance Telesat GEO Inc.’s debt, the outcome of litigation related to Telesat GEO Inc.’s debt and the 62% equity distribution, volatility of securities values in an industry sector where values may be influenced by economic and other factors beyond Telesat’s control, inflation, rising or prolonged elevated interest rates, fluctuations in foreign exchange rates, and tariffs; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures, impaired satellite performance or dependence on large customers; the ability to deploy successfully an advanced global LEO satellite constellation and the timing of any such deployment; Telesat’s ability to meet the conditions for advance of the loans under the funding agreements for the constellation; technological hurdles, including Telesat’s and Telesat’s contractors’ development and deployment of the new technologies required to complete the constellation in time to meet Telesat’s schedule, or at all, the availability of services and components from Telesat’s and Telesat’s contractors’ supply chains; competition, including with other LEO systems, deployed and yet to be deployed; risks associated with domestic and foreign government regulation, including government restrictions and regulations, access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; and the ability to expand Telesat’s existing satellite utilization. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat’s annual report on Form 20-F for the year ended December 31, 2025, that was filed on March 17, 2026, and the Form 6-K that was filed on May 5, 2026, with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval + (SEDAR+), and may be accessed on the SEC’s website at www.sec.gov and SEDAR’s website at www.sedarplus.ca. End Notes 1 Non-IFRS Accounting Standards Measures – Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS Accounting Standards measures. EBITDA is defined as “Earnings Before Interest, Taxes, Depreciation and Amortization.” Adjusted EBITDA is used to measure Telesat’s financial performance. Adjusted EBITDA is defined as operating income (less certain operating expenses such as share-based compensation expenses and unusual and non-recurring items, including restructuring related expenses) before interest expense, taxes, depreciation and amortization. Adjusted EBITDA margin is used to measure Telesat’s operating performance. Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to revenue. Adjusted EBITDA and Adjusted EBITDA margin are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. Adjusted EBITDA allows investors and Telesat to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists investors and Telesat to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes that the use of Adjusted EBITDA improves comparability of performance by excluding interest expense. Telesat believes that the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS Accounting Standards measures enhances the understanding of our operating results and is useful to investors and us in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA and Adjusted EBITDA margin as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA and Adjusted EBITDA margin should be used in conjunction with IFRS Accounting Standards measures and are not presented as a substitute for cash flows from operations as a measure of our liquidity or as a substitute for net income (loss) as an indicator of our operating performance. 2 Telesat’s backlog represents future cash inflows from capacity allocation or service delivery contracts. As of June 30, 2026, GEO backlog was $0.9 billion and represents our expected future revenue from existing GEO service contracts (without discounting for present value) including any deferred revenue that we will recognize in the future in respect of cash already received. As of June 30, 2026, the expected cash inflow from Telesat Lightspeed capacity allocation and service contracts (without discounting for present value) was $1.1 billion. 3 Includes severance payments and special compensation and benefits for executives and employees.

OTTAWA, July 31, 2026 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, has scheduled a conference call for Thursday, August 13, 2026, at 10:30 a.m. EDT to discuss its financial results on the three- and six-month periods ended June 30, 2026. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Donald Tremblay, Chief Financial Officer, of Telesat. Prior to the commencement of the call, Telesat will post a news release containing its financial results on its website (www.telesat.com) under the tab “Investors” and the heading “Investor News.” Dial-in Instructions: The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 2873917 followed by the number sign (#). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe). Webcast: The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/bx45s7mp. A replay of the webcast will be archived on Telesat’s website under the tab “Investors”. Dial-in Audio Replay: A replay of the teleconference will be available one hour after the end of the call on August 13, 2026 until 11:59 p.m. EDT on August 27, 2026. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 2873917 followed by the number sign (#). About Telesat Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth. Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com. Investor Relations Contact:James Ratcliffe+1 613 748 [email protected]

Telesat said it made significant strides on its LightSpeed LEO program — progress on satellites, user terminals, software and ground stations — and still expects full global commercial service around the end of Q1 2028, with LightSpeed backlog reported at about CAD 1.1 billion (not including a recent Northwestel agreement). Adding military Ka‑band (Mil‑Ka) capacity has generated strong allied government interest, and Telesat is negotiating the ESCAPE Arctic program with the Canadian government; management said the deal could be "meaningfully accretive" and would prompt updates to financial projections if finalized, though no agreement is assured. Q1 results: consolidated revenue of CAD 87 million, adjusted EBITDA of CAD 35 million and a net loss of CAD 151 million driven mainly by non‑cash goodwill impairments; GEO revenue fell 26% YoY and GEO backlog was just below CAD 800 million, while liquidity (GEO cash ~CAD 200m, LEO cash ~CAD 300m plus CAD 1.72 billion of LightSpeed financing availability and $325m vendor financing) is expected to fund LightSpeed until commercial service begins. Interested in Telesat Corporation? Here are five stocks we like better. Telesat (NASDAQ:TSAT) reported first-quarter 2026 results that management said were in line with expectations for its legacy geostationary (GEO) business while continuing to advance development and commercialization efforts for its Telesat LightSpeed low Earth orbit (LEO) constellation. President and CEO Dan Goldberg said the company “made significant strides” in developing and commercializing LightSpeed during the quarter, citing progress not only on satellite development but also on user terminals, software development, and the deployment of the ground station network. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook Goldberg reiterated the expected timing for service readiness, saying the company continues to expect “full global commercial service around the end of the first quarter of 2028.” On the commercial front, Goldberg highlighted a LightSpeed agreement signed last month with Northwestel to provide broadband connectivity to communities across Nunavut. CFO Donald Tremblay noted that LightSpeed backlog totaled approximately CAD 1.1 billion at the end of the first quarter, adding that the backlog figure “does not include the recently signed agreement with Northwestel.” → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches Goldberg also emphasized increasing interest from allied government customers after Telesat incorporated military Ka-band (Mil-Ka) capacity into LightSpeed. He said the company is seeing “a very positive response” from allied governments that want secure, resilient LEO satellite services on Ka-band frequencies used for mission-critical operations. During the Q&A, Goldberg said several governments are evaluating how to secure military Ka-band capability in LEO and that Telesat is engaging with those potential customers. In response to questions about the market impact of allocating capacity to Mil-Ka, Goldberg said the company believes “the market that the Mil-Ka addresses is a very large market,” and he described the ESCAPE opportunity as “meaningfully accretive,” assuming contractual arrangements are finalized. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries Goldberg discussed ongoing work with the Canadian government following its selection of Telesat and MDA late last year to deliver the Enhanced Satellite Communications Project – Polar (ESCAPE) for the Canadian Armed Forces in the Arctic. He said the company has been engaged with the government to finalize contractual arrangements for a significant portion of the program and anticipates these could be concluded “in the coming months,” while cautioning that “there can be no assurance an agreement will ultimately be reached.” If the arrangements are finalized, Goldberg said Telesat intends to update investors on the expected financial impact. “Our intention is to update our financial projections at that time so that investors can take into account the expected impact on our business,” he said. Later in the Q&A, Goldberg told analysts the company would update annual guidance if ESCAPE affects the current year and would also update LightSpeed financial projections previously provided to the market if ESCAPE incorporates LightSpeed capabilities. Goldberg added that one ESCAPE requirement is military Ka-band capacity in the Arctic, along with UHF and X-band. He also said he does not “connect the CAD 2 billion loan to future business with the Government of Canada,” describing government procurement as centered on value for taxpayers. Tremblay reported consolidated revenue of CAD 87 million and adjusted EBITDA of CAD 35 million for the first quarter. The company posted a consolidated net loss of CAD 151 million, compared to a CAD 51 million loss in the prior-year quarter. Tremblay attributed most of the CAD 100 million negative swing to “non-cash impairments of goodwill” and lower adjusted EBITDA in the GEO business. Interest expense totaled CAD 50 million, down from CAD 57 million a year earlier, which Tremblay said reflected a lower interest rate on floating-rate debt and a stronger Canadian dollar’s impact on U.S.-dollar denominated debt. He added that interest related to LightSpeed of CAD 14 million was capitalized to the project during the quarter, up from CAD 3.5 million last year as LightSpeed financing amounts outstanding increased. In the GEO segment, Tremblay said revenue was CAD 86 million, down 26% year-over-year. The decline was driven primarily by broadcast, reflecting the expiration of contracts on the Nimiq 4 and Anik F3 satellites in 2025 and lower capacity and pricing tied to a renewal on Nimiq 5. In enterprise, he said lower revenue was mainly due to the October 2025 renewal of the Xplore contract, which he said did not materially impact operating cash flow because it was “mostly prepaid at inception.” The declines were partially offset by aviation contracts added in 2025. Additional GEO metrics provided on the call included: Satellite utilization of 55% at the end of the first quarter GEO backlog “just below CAD 800 million” at the end of March GEO adjusted EBITDA of CAD 55 million, down 37% year-over-year Tremblay said the quarter included approximately CAD 7 million of costs related to the GEO debt refinancing process, about CAD 3 million higher than the prior year. Excluding refinancing expenses, GEO adjusted EBITDA would have been CAD 52 million for the period. Goldberg noted that while GEO is “a largely fixed cost business,” the company is focused on reducing costs, and he pointed to adjusted operating expenses (excluding debt refinancing costs) that were down 11% year-over-year. Telesat reiterated full-year 2026 guidance for the GEO segment, with Tremblay reaffirming revenue of CAD 300 million to CAD 320 million and adjusted EBITDA of CAD 210 million to CAD 230 million, excluding debt refinancing expenditures. The company also reiterated expectations for total 2026 LightSpeed investment and said it remains focused on refinancing Telesat GEO debt that begins to mature in December. On liquidity, Tremblay said the GEO segment ended the quarter with just over CAD 200 million in cash, “largely unchanged” from the end of 2025, and that the company believes GEO cash and 2026 cash flow will be sufficient to meet obligations prior to the December debt maturity. For the LEO segment, he said Telesat ended the quarter with nearly CAD 300 million in cash, and that this cash, combined with CAD 1.72 billion of availability under LightSpeed financing and $325 million of vendor financing, is expected to be sufficient to fund LightSpeed until global commercial service begins around the end of Q1 2028. He also said the company is in compliance with all covenants in its credit agreement and indenture. Goldberg said Telesat has been watching industry developments related to terminals and believes the company is “in an excellent spot” on its terminal strategy, which he said is centered on flat-panel antennas tailored by vertical (including maritime, aeronautical, government, and fixed broadband). He referenced cooperation with Intellian, as well as relationships with Kymeta and Farcast, and said the network is open, allowing government users to certify their own desired terminals. In discussing competition, Goldberg described Starlink as “far ahead of everyone else” and said it has become a benchmark for users. He said Amazon’s LEO effort is “coming” and that Telesat is hearing Amazon in the market. Goldberg said Telesat’s approach is to compete on “some mix of quality of service, price, and customer support,” while also emphasizing LightSpeed’s Layer 2 service and APIs designed to integrate with telecom operators’ networks. He added that because Telesat is not pursuing a direct-to-consumer model, it is “not seen as a competitor” to incumbents in the same way as providers that also target consumer subscribers. Separately, Goldberg noted that the company recently changed the name of its GEO operating subsidiary from Telesat Canada to Telesat GEO Inc. to reduce confusion with the public parent company, Telesat Corporation. Telesat is a leading global satellite operator that designs, builds and delivers high-performance satellite communications solutions across multiple markets. The company operates a fleet of geostationary satellites to provide video distribution, data networking and managed broadband services to media companies, network operators, governments and enterprise customers. Telesat's infrastructure supports television distribution, cellular backhaul, rural broadband and corporate network applications. In addition to its geostationary offerings, Telesat is developing a low Earth orbit (LEO) satellite constellation known as Lightspeed. The article "Telesat Q1 Earnings Call Highlights" was originally published by MarketBeat.

OTTAWA, Ontario, May 05, 2026 (GLOBE NEWSWIRE) -- Telesat (Nasdaq and TSX: TSAT), one of the world’s largest and most innovative satellite operators, today announced its financial results for the three month period ended March 31, 2026. All amounts are in Canadian dollars and reported under IFRS® Accounting Standards unless otherwise noted. “I’m pleased with Telesat’s performance in the first quarter of 2026, as the company made significant strides on a number of fronts,” commented Dan Goldberg, Telesat’s President and CEO. “Our GEO results are tracking to our expectations, and we continue to make strong progress on the development of the Telesat Lightspeed constellation. During the quarter, we held further design reviews with our satellite and launch vehicle dispenser manufacturers and progressed our work on user terminals, network and satellite operations software development, and ground station deployments. As of the end of the quarter, we’ve invested a total of approximately $2.7 billion in the Telesat Lightspeed program, including both expensed and capitalized costs. We continue to expect Telesat Lightspeed to commence global commercial service around the end of Q1 2028.” “On the commercial front, we executed a contract with Northwestel for Telesat Lightspeed service to support broadband connectivity in communities across Nunavut. That contract demonstrates the commercial appeal of Telesat Lightspeed for rural broadband, and interest remains robust at this time from government and defence users globally as well. Since announcing our plans to incorporate Military Ka-band (Mil‑Ka) spectrum into the Telesat Lightspeed constellation, we’ve seen increased engagement from allied government customers, reinforcing our view that Telesat Lightspeed is well positioned to address fast-growing government demand for secure, resilient, and advanced satellite capabilities to meet mission‑critical communications requirements around the world.” “In our GEO business, we continued to manage ongoing revenue pressures with a disciplined approach to cost control, allowing us to partially mitigate the impact of topline pressure on margins and generate resilient cash flow from our existing satellite fleet. Today, we are reiterating our revenue and adjusted EBITDA guidance for the year for our GEO segment.” “Finally, we remain focused and are working closely with our advisors on refinancing the Telesat GEO debt before it starts to mature later this year.” For the quarter ended March 31, 2026, Telesat reported consolidated revenue of $87 million, a decrease of 25% ($30 million) compared to the prior year (24% excluding the impact of foreign exchange), and adjusted EBITDA1 of $35 million, a decrease of 48% ($32 million) from the first quarter of 2025 (47% excluding the impact of foreign exchange). Excluding the impact of higher expenses related to our debt refinancing process, adjusted EBITDA decreased 42%. Telesat net loss for the quarter was $151 million compared to a $51 million loss in the prior year. The increased net loss was primarily due to lower revenue and a non-cash goodwill impairment loss in our GEO segment. In our GEO segment, revenue for the quarter was $86 million, a 26% decline ($30 million) from the same period in 2025 (24% excluding the impact of foreign exchange). The revenue decline was driven primarily by non-renewals of certain broadcast contracts in 2025 and, to a lesser extent, reductions in services for fixed broadband customers, partially offset by new contracts in our aviation segment. GEO segment adjusted EBITDA for the quarter was $53 million, a 37% ($34 million) decline from the comparable period in 2025 (35% excluding the impact of foreign exchange), reflecting lower revenue, partially offset by lower operating expenses. Adjusted EBITDA for Q1 included $7 million in expenses relating to our debt refinancing process. Excluding these costs, GEO segment adjusted EBITDA margin1 was 72% during the quarter, compared to 77% in the same period of 2025. In our LEO segment, we invested $171 million in the Telesat Lightspeed program in the first quarter of 2026, reflecting $19 million in operating expense and $152 million in capital expenditure. As of March 31, 2026, backlog2 for our GEO segment totaled approximately $800 million and LEO backlog2 totaled approximately $1.1 billion. GEO satellite utilization was 55% at March 31, 2026. Business Highlights In March, Telesat announced the addition of Mil-Ka spectrum to its advanced Telesat Lightspeed network, responding to strong global demand for mission-critical Mil-Ka capacity in LEO. Telesat Lightspeed was designed from inception to meet the security and resiliency requirements of defence organizations and the addition of Mil-Ka connectivity that will be interoperable with existing government systems further enhances its ability to support rapidly expanding defence and sovereignty requirements. In April, Northwestel, the largest communications provider in Canada’s North, signed a multi-year contract for Telesat Lightspeed services. Northwestel plans to leverage Telesat Lightspeed to deliver low latency, sovereign broadband connectivity to communities throughout Nunavut. In April, we changed the name of our GEO operating subsidiary from Telesat Canada to Telesat GEO Inc. The renaming does not impact our legal structure, ownership, operations, financial results, or subsidiaries. 2026 Financial Outlook (assumes an average foreign exchange rate of US$1=C$1.38) Telesat is maintaining its guidance provided in March and continues to expect full year 2026: GEO revenue to be between $300 million and $320 million; GEO Adjusted EBITDA1 to be between $210 million and $230 million, excluding non-recurring debt refinancing costs; and Total spending on the Telesat Lightspeed program, including both expensed and capitalized costs, to be between $1.0 billion and $1.2 billion. Telesat’s quarterly report on Form 6-K for the quarter ended March 31, 2026 has been filed with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities, and may be accessed on the SEC’s website at www.sec.gov and on the System for Electronic Document Analysis and Retrieval+ (SEDAR+) website at www.sedarplus.ca. Conference Call Telesat has scheduled a conference call on Tuesday, May 5th, 2026, at 10:30 AM EDT to discuss its financial results for the quarter ended March 31, 2026. The call will be hosted by Daniel S. Goldberg, President and Chief Executive Officer, and Donald Tremblay, Chief Financial Officer, of Telesat. Dial-in Instructions: The toll-free dial-in number for the teleconference is +1-800-715-9871. Callers outside of North America should dial +1-646-307-1963. The access code is 6669954 followed by the number sign (#). Please allow at least 15 minutes prior to the scheduled start time to connect to the teleconference. In the event of technical issues, please dial *0 and advise the conference call operator of the company name (Telesat) and the name of the moderator (James Ratcliffe). Webcast: The conference call can also be accessed, as a listen in only, at https://edge.media-server.com/mmc/p/7e5e286e. A replay of the webcast will be archived on Telesat’s website under the tab “Investors”. Dial-in Audio Replay: A replay of the teleconference will be available one hour after the end of the call on May 5, 2026 until 11:59 p.m. ET on May 19, 2026. To access the replay, please call +1-800-770-2030. Callers from outside North America should dial +1-609-800-9909. The access code is 6669954 followed by the number sign (#). About Telesat Backed by a legacy of engineering excellence, reliability and industry-leading customer service, Telesat (Nasdaq and TSX: TSAT) is one of the largest and most innovative global satellite operators. Telesat works collaboratively with its customers to deliver critical connectivity solutions that tackle the world’s most complex communications challenges, providing powerful advantages that improve their operations and drive profitable growth. Continuously innovating to meet the connectivity demands of the future, Telesat Lightspeed, the company’s state-of-the-art Low Earth Orbit (LEO) satellite network, has been optimized to meet the rigorous requirements of telecom, government, maritime and aeronautical customers. Telesat Lightspeed will redefine global satellite connectivity with ubiquitous, affordable, high-capacity, secure and resilient links with fibre-like speeds. For updates on Telesat, follow us on LinkedIn, X, or visit www.telesat.com. Investor Relations Contact: James Ratcliffe +1 613 748 8424 [email protected] Forward-Looking Statements Safe Harbor This news release contains statements that are not based on historical fact, including financial outlook for 2026, estimated timing of the commencement of global commercial service on Telesat Lightspeed and the growth opportunities of Telesat Lightspeed, and are “forward-looking statements” and “future-orientated financial performance” within the meaning of the Private Securities Litigation Reform Act of 1995 and Canadian securities laws. When used herein, statements which are not historical in nature, or which contain the words “will,” “expect,” “continue,” or similar expressions, are forward-looking statements. Actual results may differ materially from the expectations expressed or implied in the forward-looking statements and future-orientated financial information as a result of known and unknown risks and uncertainties. Future-orientated financial information contained in this news release about prospective financial performance, financial position, or cash flows are expected to give the reader a better understanding of the potential future performance of Telesat. Readers are cautioned that any such future-orientated financial information and financial outlook contained herein should not be used for purposes other than those disclosed herein. All statements made in this news release are made only as of the date set forth at the beginning of this release. Telesat undertakes no obligation to update the information made in this news release in the event facts or circumstances subsequently change after the date of this release. These forward-looking statements and future-orientated financial information are not guarantees of future performance, are based on Telesat’s current expectations, and are subject to a number of risks, uncertainties, assumptions, and other factors, some of which are beyond Telesat control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Known risks and uncertainties include but are not limited to: risks associated with financial factors, including swings in the global financial markets, access to capital to construct our LEO satellite constellation, the ability to refinance Telesat GEO Inc.’s debt, the outcome of litigation related to Telesat GEO Inc.’s debt and the 62% equity distribution, volatility of securities values in an industry sector where values may be influenced by economic and other factors beyond Telesat’s control, inflation, rising or prolonged elevated interest rates, fluctuations in foreign exchange rates, and tariffs; risks associated with operating satellites and providing satellite services, including satellite construction or launch delays, launch failures, in-orbit failures, impaired satellite performance or dependence on large customers; the ability to deploy successfully an advanced global LEO satellite constellation and the timing of any such deployment; Telesat’s ability to meet the conditions for advance of the loans under the funding agreements for the constellation; technological hurdles, including Telesat’s and Telesat’s contractors’ development and deployment of the new technologies required to complete the constellation in time to meet Telesat’s schedule, or at all, the availability of services and components from Telesat’s and Telesat’s contractors’ supply chains; competition, including with other LEO systems, deployed and yet to be deployed; risks associated with domestic and foreign government regulation, including government restrictions and regulations, access to sufficient orbital spectrum to be able to deliver services effectively and access to sufficient geographic markets in which to sell those services; Telesat’s ability to develop significant commercial and operational capabilities; and the ability to expand Telesat’s existing satellite utilization. The foregoing list of important factors is not exhaustive. Investors should review the other risk factors discussed in Telesat’s annual report on Form 20-F for the year ended December 31, 2025, that was filed on March 17, 2026, and the Form 6-K that was filed on May 5, 2026, with the United States Securities and Exchange Commission (SEC) and the Canadian securities regulatory authorities at the System for Electronic Document Analysis and Retrieval + (SEDAR+), and may be accessed on the SEC’s website at www.sec.gov and SEDAR’s website at www.sedarplus.ca. End Notes 1 Non-IFRS Accounting Standards Measures – Adjusted EBITDA and Adjusted EBITDA margin are non-IFRS Accounting Standards measures. EBITDA is defined as “Earnings Before Interest, Taxes, Depreciation and Amortization.” Adjusted EBITDA is used to measure Telesat’s financial performance. Adjusted EBITDA is defined as operating income (less certain operating expenses such as share-based compensation expenses and unusual and non-recurring items, including restructuring related expenses) before interest expense, taxes, depreciation and amortization. Adjusted EBITDA margin is used to measure Telesat’s operating performance. Adjusted EBITDA margin is defined as the ratio of Adjusted EBITDA to revenue. Adjusted EBITDA and Adjusted EBITDA margin are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers. Adjusted EBITDA allows investors and Telesat to compare Telesat’s operating results with that of competitors exclusive of depreciation and amortization, interest and investment income, interest expense, taxes and certain other expenses. Financial results of competitors in the satellite services industry have significant variations that can result from timing of capital expenditures, the amount of intangible assets recorded, the differences in assets’ lives, the timing and amount of investments, the effects of other income (expense), and unusual and non-recurring items. The use of Adjusted EBITDA assists investors and Telesat to compare operating results exclusive of these items. Competitors in the satellite services industry have significantly different capital structures. Telesat believes that the use of Adjusted EBITDA improves comparability of performance by excluding interest expense. Telesat believes that the use of Adjusted EBITDA and the Adjusted EBITDA margin along with IFRS Accounting Standards measures enhances the understanding of our operating results and is useful to investors and us in comparing performance with competitors, estimating enterprise value and making investment decisions. Adjusted EBITDA and Adjusted EBITDA margin as used here may not be the same as similarly titled measures reported by competitors. Adjusted EBITDA and Adjusted EBITDA margin should be used in conjunction with IFRS Accounting Standards measures and are not presented as a substitute for cash flows from operations as a measure of our liquidity or as a substitute for net income (loss) as an indicator of our operating performance. 2 Telesat’s backlog represents future cash inflows from capacity allocation or service delivery contracts. As of March 31, 2026, GEO backlog was $0.8 billion and represents our expected future revenue from existing GEO service contracts (without discounting for present value) including any deferred revenue that we will recognize in the future in respect of cash already received. As of March 31, 2026, the expected cash inflow from Telesat Lightspeed capacity allocation and service contracts (without discounting for present value) was $1.1 billion. 3 Includes severance payments and special compensation and benefits for executives and employees.