Telesat Corp (TSE:TSAT)
TSX:TSAT
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Telesat Corp
(TSX:TSAT)
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Rating:49Neutral
Price Target:
C$64.00
▼(-9.78% Downside)
Action:ReiteratedDate:04/16/26
The score is held down primarily by weak financial performance (shrinking revenue, renewed losses, deeply negative 2025 free cash flow) alongside a highly leveraged balance sheet, which increases execution and financing risk during the Lightspeed investment cycle. Technicals are a meaningful offset, showing strong upward momentum and broad moving-average support, but valuation remains challenged because profitability is negative and there is no dividend yield data to provide downside support.
Positive Factors
LEO and GEO dual-platform strategy
Telesat's Lightspeed LEO program plus its existing GEO fleet creates a multi-tiered product set that addresses both low-latency and wide-coverage needs. Structurally this diversifies addressable markets (mobility, enterprise, government) and supports long-term managed-service revenue expansion.
Negative Factors
High leverage and weak equity base
A debt-heavy capital structure with equity erosion limits financial flexibility and raises refinancing risk. Large leverage increases interest and covenant vulnerability during downturns, constraining the company’s ability to fund Lightspeed capex organically and heightening execution risk over the medium term.
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Positive Factors
Negative Factors
LEO and GEO dual-platform strategy
Telesat's Lightspeed LEO program plus its existing GEO fleet creates a multi-tiered product set that addresses both low-latency and wide-coverage needs. Structurally this diversifies addressable markets (mobility, enterprise, government) and supports long-term managed-service revenue expansion.
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Telesat Corp (TSAT) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$966.53M
Dividend YieldN/A
Average Volume (3M)43.11K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-26.81%
EPS Growth-70.50%
CountryCA
Employees610
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-8.48
Shares Outstanding14,695,331
10 Day Avg. Volume48,080
30 Day Avg. Volume43,112
Financial Highlights & Ratios
PEG Ratio-0.05
Price to Book (P/B)1.09
Price to Sales (P/S)1.39
P/FCF Ratio-0.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$74.74Price Target Upside5.36% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-6.73
Revenue Forecast (FY)C$319.00M
Telesat Corp Business Overview & Revenue Model
Company Description
Telesat Corporation, a satellite operator, provides mission-critical communications services to broadcast, enterprise, and consulting customers worldwide. The company's satellite-based services allow direct-to-home (DTH) service providers to deliv...
How the Company Makes Money
Telesat primarily makes money by selling satellite communications capacity and related services to customers who need connectivity where terrestrial networks are limited or unavailable. Key revenue streams typically include: (1) Long-term satellit...
Telesat Corp Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The earnings call revealed a mixed performance for Telesat, with significant progress in the LEO segment and capital structure optimization being overshadowed by decreased revenues, increased operating expenses, and a notable net loss. While there are positive developments, the financial challenges present a balanced outlook.Positive Updates
Progress in LEO Segment
Telesat is making strong progress on the development of satellites, ground infrastructure, and software for its LEO network, with the first launch planned for late next year.
Negative Updates
Revenue Decline
Revenues decreased by $37 million to $101 million, primarily due to a lower rate on the renewal of a long-term agreement with a North American direct-to-home customer and the expiration of a separate agreement.
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Q3-2025 Updates
Positive
Negative
Progress in LEO Segment
Telesat is making strong progress on the development of satellites, ground infrastructure, and software for its LEO network, with the first launch planned for late next year.
Read all positive updates
Company Guidance
During Telesat's third quarter 2025 financial results call, the company reaffirmed its guidance for the year, projecting full-year revenues between $405 million and $425 million, adjusted EBITDA ranging from $170 million to $190 million, and capital expenditures between $900 million and $1.1 billion, primarily for the development of Telesat Lightspeed. The guidance assumes a Canadian dollar to U.S. dollar exchange rate of $1.42. Operating expenses for Telesat Lightspeed are anticipated to fall between $75 million and $85 million, reflecting higher capitalized engineering and hiring timing. As of September 30, Telesat had $483 million in cash, with a total leverage ratio of 8.676x, and was in compliance with all credit covenants. Additionally, the company completed its third draw on financing facilities with the Canadian and Quebec governments, bringing the total draw to $540 million.Telesat Corp Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
27
Negative
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 417.96M | 571.04M | 704.16M | 759.17M | 758.21M |
| Gross Profit | 153.71M | 533.07M | 665.65M | 705.16M | 728.00M |
| EBITDA | 206.18M | 67.02M | 1.14B | 394.71M | 626.05M |
| Net Income | -155.35M | -87.72M | 157.12M | -80.12M | 157.76M |
Balance Sheet | |||||
| Total Assets | 6.60B | 6.95B | 6.27B | 6.48B | 6.37B |
| Cash, Cash Equivalents and Short-Term Investments | 509.80M | 552.63M | 1.67B | 1.68B | 1.45B |
| Total Debt | 3.53B | 3.13B | 3.23B | 3.88B | 3.83B |
| Total Liabilities | 4.83B | 4.45B | 3.88B | 4.64B | 4.67B |
| Stockholders Equity | 530.82M | 710.28M | 661.92M | 480.37M | 416.52M |
Cash Flow | |||||
| Free Cash Flow | -698.42M | -2.39M | 29.58M | 164.27M | 260.61M |
| Operating Cash Flow | 66.70M | 62.46M | 169.09M | 228.85M | 296.39M |
| Investing Cash Flow | -761.23M | -1.09B | 211.93M | 74.00K | -272.86M |
| Financing Cash Flow | 672.36M | -170.20M | -354.65M | -104.86M | 605.24M |
Telesat Corp Technical Analysis
Positive
70.94
Price Trends
49.15
Positive
45.08
Positive
40.44
Positive
Market Momentum
5.15
Negative
72.59
Negative
91.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TSAT, the sentiment is Positive. The current price of 70.94 is above the 20-day moving average (MA) of 57.57, above the 50-day MA of 49.15, and above the 200-day MA of 40.44, indicating a bullish trend. The MACD of 5.15 indicates Negative momentum. The RSI at 72.59 is Negative, neither overbought nor oversold. The STOCH value of 91.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TSAT.
Telesat Corp Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$1.23B | 14.79 | 24.24% | 5.97% | 3.11% | 3.49% | |
64 Neutral | C$315.12M | 565.37 | -5.37% | 2.14% | -13.47% | -240.72% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
49 Neutral | C$966.53M | -3.73 | -24.05% | ― | -26.81% | -70.50% | |
47 Neutral | C$43.95M | -88.13 | -4.10% | 1.52% | -26.68% | -92.00% | |
47 Neutral | C$4.60M | -7.04 | ― | ― | 0.73% | ― | |
45 Neutral | C$39.69M | -8.46 | ― | ― | -8.71% | 40.96% |
* Technology Sector Average
TSE:TSAT
Telesat Corp
63.28
41.31
188.03%
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128.87%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.