Europe's SES beats earnings estimates, helped by new government contracts

(Reuters) -European satellite company SES reported quarterly earnings well above market expectations on Wednesday, buoyed by new government contracts and lower costs across the board.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first quarter of 2025 fell 0.9% year-on-year to 280 million euros ($318.42 million).

That is 13% above the analysts' average estimate of 246 million euros, according to a company-compiled consensus poll.

SES operates a multi-orbit fleet of around 70 satellites providing services such as video broadcasting, government communications and broadband internet.

Its Paris-listed shares have soared this year, up 46% as of Tuesday, amid a wider rally in European defence stocks and as investors bet on European alternatives to SpaceX's Starlink.

"We have secured 360 million euros in new business and contract renewals to support future growth including an enhanced pipeline of government opportunities," CEO Adel Al-Saleh said in a statement.

First-quarter revenue came in at 509 million euros, while analysts expected 492 million euros.

SES also confirmed its annual financial outlook and said the financing for the 3.1 billion euro Intelsat acquisition, which has raised debt concerns, had been secured.

($1 = 0.8794 euros)

(Reporting by Gianluca Lo Nostro; Editing by Kim Coghill and Janane Venkatraman)