Space Engineering Services (SES) generates €978 million in revenue during the first half of the year and announces the subsequent phase of its multi-orbit satellite expansion plan.

Space Engineering Services (SES) generates €978 million in revenue during the first half of the year and announces the subsequent phase of its multi-orbit satellite expansion plan.

In a significant move for the satellite communications industry, SES officially closed its acquisition of Intelsat on 17th July 2025, marking a milestone in the company's growth. The deal, valued at $2.6 billion, was part of a larger cash transaction worth $3.1 billion 14.

The acquisition has created a strengthened global multi-orbit satellite operator, with a fleet of approximately 120 GEO and MEO satellites and strategic access to LEO constellations. This combination brings synergies estimated at 85% of the transaction’s equity value and enables SES to offer enhanced multi-orbit, multi-band satellite connectivity solutions 1.

Financially, SES expects the acquisition to improve free cash flow and financial flexibility, targeting net leverage below 3x adjusted EBITDA within 12-18 months and a subsequent increase in dividends and shareholder returns 2.

Operationally, the combined company has greater coverage, improved resiliency, and expanded service offerings to government, aviation, maritime, media, and other sectors worldwide 3. Key synergies include strengthened multi-orbit presence (GEO, MEO, LEO), integrated satellite and ground networks, and an expanded range of frequency bands (C-, Ku-, Ka-, Military Ka-, X-band, Ultra High Frequency) enhancing service quality and tailored customer solutions 3.

The acquisition was financed through a €3 billion bridge facility, which was later closed and refinanced by hybrid and senior notes issuance, allowing a progressive reduction in debt while adhering to SES’s financial policy 2. Operational changes highlight an enlarged workforce with combined expertise aimed at leveraging the expanded asset base and improving competitive positioning amid satellite communications industry growth and innovation 1.

In the first half of 2025, SES's financial results showed a solid performance. The company's revenue for the period was €978 million, a marginal decline of 0.2% year-on-year 1. However, the Networks segment grew by 10.3%, driven by strong demand for satellite connectivity 1. Government solutions also saw a 17.1% increase, reflecting the growing importance of secure satellite communications for various sectors 1.

SES reported a significant increase in adjusted free cash flow (FCF), up 32% to €193 million 1. The company also secured a total of €690 million in new business and renewals during the first half of the year 1.

In terms of new projects, SES signed an agreement with Impulse Space to use its Helios medium-lift launch vehicle 1. The full O3b mPOWER constellation, once complete, is expected to triple SES's available capacity by 2027 1.

SES also reported strong momentum in the aero segment, with partner wins with Thai Airways, Turkish Airlines, and Uzbekistan Airways 1. Mobility grew by 9.5%, indicating a growing demand for in-flight connectivity solutions 1.

In government markets, SES secured significant new business in Europe and the United States, including a new joint project with the Luxembourg government for a second satellite for GovSat 1. SES also secured a contract with the U.S. Department of Defense through SES Space & Defense for a secure, integrated, multi-orbit architecture known as SIMONTM 1.

Adel Al-Saleh, CEO of SES, described the half-year results as reflective of solid operational and commercial progress, considering the Intelsat acquisition a "defining milestone" for the company 1. SES remains focused on executing its strategic roadmap, supported by an enlarged commercial footprint, enhanced scale, and a backlog exceeding €8 billion 1.

1. The synergies from the SES-Intelsat acquisition will allow for enhanced multi-orbit, multi-band satellite connectivity solutions, utilizing technology in the space-and-astronomy sector, as well as strengthened multi-orbit presence across GEO, MEO, and LEO satellites.
2. With the acquisition, SES expects to expand its services and coverage, particularly in the government, aviation, maritime, media, and other global sectors, leveraging satellite technology for broadcast capabilities and benefits, and aiming to offer improved financial returns to shareholders through increased dividends.

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