This article first appeared on GuruFocus .
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Revenue:EUR847 million, up 80% year-on-year.
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Adjusted EBITDA:EUR404 million, up 57% year-on-year, with a margin of 47.7%.
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Capital Expenditure:EUR319 million for Q1 2026.
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Gross Backlog:EUR6.2 billion.
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Staff Costs Reduction:20% year-on-year reduction.
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Operating Expenses:Down 9% year-on-year.
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Media Revenue:EUR285 million, up 42.9% year-on-year.
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Networks Revenue:EUR259 million for Mobility, up 2.7 times year-on-year; Government revenue EUR189 million, up 50.7% year-on-year.
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Fixed Data Revenue:EUR109 million, up 79% year-on-year.
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Net Debt to Adjusted EBITDA Ratio:4.1 times.
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Cash and Cash Equivalents:EUR874 million.
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Dividend Paid:EUR0.25 per A share and EUR0.10 per B share.
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Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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SES SA ( SGBAF ) reported a strong start to 2026 with Q1 revenue of EUR847 million, up 80% year-on-year.
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The Networks segment showed significant growth, particularly in Mobility, with a 106% year-on-year increase.
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The company secured EUR306 million in renewals and new customer contracts, supporting a gross backlog of EUR6.2 billion.
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SES SA ( SGBAF ) is making progress with its next-generation MEO network, meoSphere, which is expected to enhance future growth.
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The company achieved a 20% year-on-year reduction in staff costs and a 9% decrease in overall operating expenses, indicating successful synergy execution.
Negative Points
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The Media segment faced challenges with an 11% decline on a like-for-like basis, impacted by structural headwinds and a Brazilian customer bankruptcy.
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Fixed Data revenues declined by 16.9% on a like-for-like basis due to ongoing competitive headwinds.
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The US government segment experienced budgetary pressures and contract rationalization, affecting revenue growth.
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Capital expenditures were front-loaded in Q1 2026, totaling EUR319 million, which may impact cash flow management.
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The company faces near-term headwinds in parts of Fixed Data and Media, requiring restructuring to address competitive dynamics.
Q & A Highlights
Q: Can you explain the EUR81 million aviation contract restructuring in Q1 and its impact on future revenues? A: Elisabeth Pataki, CFO: The EUR81 million was part of a planned contract restructuring, included in our guidance. It unlocked capacity on a valuable satellite, allowing us to redeploy it to other customers. This was a favorable deal for us, and the revenue recognition needed to be taken upfront in Q1.
Q: How did you achieve a 9% year-on-year reduction in OpEx, and is this entirely synergy-driven? A: Elisabeth Pataki, CFO: The reduction is largely synergy-driven, resulting from accelerated headcount reductions, consulting cost cuts, and IT system optimizations. We are pleased with our progress in integration and synergy realization.
Q: Regarding the cancellation of satellite projects, will this impact your expected revenue growth? A: Elisabeth Pataki, CFO: The cancellations are part of our CapEx rationalization strategy. We've made hard decisions on which satellites are necessary, and this was already factored into our CapEx guidance. It should not negatively impact our expected revenue growth.
Q: Can you provide details on the government revenue growth and the role of IRIS2? A: Elisabeth Pataki, CFO: Government revenue was strong, with IRIS2 contributing just under EUR40 million in Q1. We expect new US government contracts in H2, which are included in our guidance. We have a balanced pipeline to mitigate risks if some contracts don't materialize.
Q: What is your relationship with Lynk and OmniSpace, and would you commit additional capital to their constellation? A: Adel Al-Saleh, CEO: Our partnership with Lynk and OmniSpace is part of our diversification strategy. We have invested in the company, and the relationship includes leveraging our infrastructure and spectrum. Future capital commitments are included in our CapEx outlook.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
