Finance
SES cuts capital spending target ahead of 2026 satellite launches
Published by Global Banking & Finance Review®
Posted on March 2, 2026
2 min readLast updated: March 2, 2026
Quick Summary
SES reported full‑year 2025 results in line with expectations, lowered its 2026 capex target to around €700 million, and plans to launch up to 13 new satellites later in 2026 to bolster its multi‑orbit connectivity strategy.
SES cuts capital spending target ahead of 2026 satellite launches
By Leo Marchandon
SES Reports Annual Results and Updates Capital Expenditure Plans
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.
Market Reaction to SES Results
The company's Paris-listed shares dipped up to 7% in early trading, but reversed course to rise 3.7% by 0945 GMT.
Analyst Commentary
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.
Financial Performance and Revenue Drivers
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.
Growth in Secure Communications
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.
New Contracts and Backlog
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.
Outlook and Strategic Investments
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.
Collaboration with the European Commission
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)
Key Takeaways
- •SES’s full‑year 2025 revenue of €2.63 billion and adjusted EBITDA of €1.2 billion matched consensus, reflecting stable performance as demand for secure communications rose in Europe (telecomlead.com).
- •Capital expenditures for 2026 were trimmed by €100 million to around €700 million, as SES balances investments in its O3b mPOWER MEO constellation rollout and the EU’s IRIS² sovereign connectivity programme (ses.com).
- •SES plans to deploy up to 13 satellites in the second half of 2026 as part of its O3b mPOWER expansion, supporting enhanced capacity for government, mobility, and media sectors (businesswire.com).
References
Frequently Asked Questions about SES cuts capital spending target ahead of 2026 satellite launches
1Why did SES cut its 2026 capital spending target?
SES cut its 2026 capital spending target by 100 million euros to around 700 million as it balances investments in the O3b mPOWER constellation and the EU's IRIS² programme.
2How did SES perform financially in the past year?
SES reported full-year revenue of 2.63 billion euros and adjusted EBITDA of 1.2 billion euros, both in line with market expectations.
3What is the status of SES satellite launches?
SES plans to launch up to 13 satellites later this year, with launches now expected in the second half of the year.
4How is SES addressing demand for communications services?
Increased demand in Europe for secure communications offset impacts from the U.S. government shutdown and other spending cuts affecting SES.
5What major acquisition did SES complete recently?
SES completed its $3.1 billion acquisition of Intelsat, strengthening its position in the satellite communication market.
