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. 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.
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