Muted Earnings And Delayed Ramps Set the Stage for 2027 Reset
Muted performance. On a like-for-like basis, SES reported Q3 revenue of €832M, down 7% y/y, as gains in Aviation (+27%) and Government (+13%) were offset by structural erosion in Media (-17%) and pricing pressure in fixed data (-25%). SES’s standalone underperformed on fixed connectivity softness, while Intelsat was impacted by government shutdown delays.
Government anchor. Despite US budget headwinds, the segment delivered a 13% y/y revenue increase to €206M on a like-for-like basis, led by European sovereign demand and US milestone completions under the PTS-G and Hybrid Space Architecture programs.
Profits down. AEBITDA fell 20% y/y to €350M, with margins down to 42%, reflecting equipment sales, govt contract delays, and third-party capacity costs linked to the IS-33 failure from 2024. Aviation margins were diluted by low margin ESA installations that precede service revenue, while US shutdown postponed government contract renewals.