SES cuts capital spending target ahead of 2026 satellite launches

By Leo Marchandon

March 2 (Reuters) - European satellite operator SES on Monday reported full-year results in line with market expectations and ‌lowered its 2026 capital spending target, as it prepares to ‌launch up to 13 satellites later this year.

The company's Paris-listed shares dipped up to ​7% in early trading, but reversed course to rise 3.7% by 0945 GMT.

Analysts from ING said SES's fourth-quarter earnings looked better than expected, though they noted the company did not provide an outlook beyond 2026 ‌and that the satellite launch ⁠was now expected in the second half of the year, implying somewhat delayed revenue growth from the platform.

The ⁠Luxembourg-based operator, which completed its $3.1 billion acquisition of Intelsat last year, reported annual revenue of 2.63 billion euros ($3.09 billion) and adjusted earnings before interest, ​taxes, ​depreciation and amortisation (EBITDA) of 1.2 billion ​euros, both matching analysts' consensus.

Demand ‌for secure communications grew in Europe, offsetting the impact of the U.S. government shutdown and spending cuts implemented by the now-closed Department of Governmental Efficiency (DOGE), the company said.

SES signed 1.8 billion euros worth of new contracts in 2025, lifting its gross backlog to more than 6.6 ‌billion euros, it said.

It forecast stable 2026 ​revenue and core earnings on a like-for-like ​basis, while cutting expected ​capital expenditures by 100 million euros to around 700 ‌million, as it balances investments in ​its medium orbit ​O3b mPOWER constellation and the European Union's low orbit IRIS² programme.

The company said it was working with the European Commission to ​validate costs and ‌timelines for IRIS², the bloc's sovereign connectivity infrastructure designed to ​compete with Elon Musk's Starlink.

($1 = 0.8503 euros)

(Reporting by Leo Marchandon ​in Gdansk, editing by Milla Nissi-Prussak)