Ses S.a.

SES reported first-half 2026 revenue of EUR 1.602 billion, up 72.4% year over year on a reported basis, and adjusted EBITDA of EUR 725 million, up 47% year over year, with a 45.2% margin. Like-for-like, H1 revenue declined 5% and adjusted EBITDA declined 6.2%. First-half capital expenditures were EUR 444 million, adjusted free cash flow was negative EUR 130 million, and adjusted net operating cash flow was EUR 522 million, up EUR 42 million year over year. The company secured EUR 1.2 billion of renewals and new customer contracts in H1, with gross backlog at EUR 6.4 billion. Management reaffirmed full-year 2026 outlook for stable revenue and stable adjusted EBITDA year over year, and reiterated 2026 CapEx of around EUR 700 million excluding C-band; C-band-related CapEx is expected to be EUR 100 million to EUR 150 million in 2026 and is reimbursable over time.

Adel Al-Saleh said the first half was broadly in line with expectations, even though Q2 was softer because of contract timing. He emphasized that SES is executing a long-term strategy to become a space solutions company, with IRIS2 and MeoSphere as key strategic pillars and with vertical integration and in-house manufacturing strengthening its position. His tone was confident and detailed, especially around the second-half ramp, saying Q4 should be stronger than Q3 and that the company is confident in its full-year outlook.

Lisa Pataki focused on the financial bridge behind the quarter: reported revenue of EUR 1.602 billion, adjusted EBITDA of EUR 725 million, a 45.2% margin, CapEx of EUR 444 million, and negative adjusted free cash flow of EUR 130 million for H1. She noted adjusted net operating cash flow of EUR 522 million, up EUR 42 million year over year, and cash and cash equivalents of EUR 703 million, excluding EUR 215 million of restricted cash tied to IRIS2. She also said net leverage was 4.4x versus 4.1x last quarter, and that the company repaid about $1.2 billion of debt principal in H1, including the EUR 650 million senior bond and $525 million of deeply subordinated securities. On capital allocation, she reiterated that C-band proceeds will first go toward deleveraging to 3.0x net leverage or below, and that at least a majority of future exceptional cash flows will go to shareholder returns once that target is reached.

Analysts pressed management on how H2 growth will be phased, whether the expected rebound is already contracted, and how much visibility SES can give around eventual use of C-band proceeds. Adel said the majority of H2 contracts are already contracted, that Q4 should be larger than Q3, and that some revenue will ramp with milestone-based recognition, especially from PTSG and IRIS2. On C-band, he said SES wants to clear spectrum as quickly as possible, has already contracted satellite manufacturing for the transition, and would consider ways to accelerate access to proceeds only if it creates net benefit for shareholders. Questions also covered IRIS2 timing, launch-market risk, ESA terminal installs, and the C-band tax rate; management said IRIS2 is very close, ESA installs should ramp again in Q3/Q4, and 10% remains the market’s working assumption on C-band taxes.