What's Happening?
SES, a European satellite operator, has completed its acquisition of the American firm Intelsat, marking a significant expansion in its operations. This merger, finalized on July 17, 2025, has been anticipated
since 2022. The latest quarterly earnings report, which includes Intelsat's contributions, shows a mixed financial performance. SES reported a year-to-date revenue of €1.75 billion ($2 billion) and €1.4 billion ($1.6 billion) in new contract value since the start of 2025. Despite these figures, the company experienced a 1.8% year-over-year revenue decline for the first nine months of 2025. SES also launched two additional O3b mPOWER satellites in July, expected to enhance business operations early next year. However, the ongoing U.S. government shutdown is causing delays in contract awards and renewals, potentially affecting revenue timelines.
Why It's Important?
The acquisition of Intelsat by SES positions the company as a global, multi-orbit operator, enhancing its scale and potential for long-term growth. This merger is significant in the satellite communications industry, as it combines two major players, potentially increasing competition and innovation. The financial performance of SES, despite the acquisition, highlights the challenges faced by the satellite industry, including market volatility and external factors like government shutdowns. The delays in U.S. government contracts could impact SES's financial stability and strategic planning, affecting stakeholders and potentially influencing market dynamics.
What's Next?
SES is expected to integrate Intelsat's operations fully and leverage the combined capabilities to expand its market presence. The company plans to bring the newly launched O3b mPOWER satellites into service next year, which could drive additional business. The resolution of the U.S. government shutdown will be crucial for SES, as it could determine the timing of contract awards and renewals. Stakeholders will be closely monitoring SES's ability to navigate these challenges and capitalize on the merger's potential benefits.
