Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the Telesat Corporation Fourth Quarter 2025 Financial Results. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, please press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. I would now like to turn the conference over to James Ratcliffe, Vice President of Investor Relations. You may begin.

Thank you, Desiree, and good morning, everyone. This morning, we filed our annual report for the period ending December 31, 2025, on Form 20-F with the SEC and on SEDAR+. Our remarks today may contain forward-looking statements. There are risks that Telesat Corporation’s actual results may differ materially from the results contemplated by the forward-looking statements as a result of known and unknown risks and uncertainties. For a discussion of known risks, please see Telesat Corporation’s annual report and updates filed with the SEC. Telesat Corporation assumes no responsibility to update or revise these forward-looking statements. I will now turn the call over to Dan Goldberg, Telesat Corporation’s President and Chief Executive Officer.

Okay. Thanks, James, and thank you all for joining us this morning. I'll say a few words about the business and our focus for this year, then I'll hand over to Donald to speak to the numbers in more detail, and we'll then open the call up to questions. I'm pleased with the results we achieved last year and the steps we've taken to position Telesat Corporation for significant growth and to capture the compelling opportunities we're seeing in the market today. Our GEO business faces structural challenges. We've discussed that before. But we came in ahead of our adjusted EBITDA guidance for last year, and within the constraints of what's essentially a fixed-cost business, we've optimized our cost structure where we can to maximize the cash flow of that business. Turning to LEO, I'm very pleased with the significant progress we've been making on Lightspeed, including the very tangible progress on the development of the network, the satellites, the multiple software platforms that power the constellation and support our customers, and the development of the advanced user terminals and landing stations that comprise the terrestrial portion of the Lightspeed network. It's very positive and very exciting. As we've said previously, our first satellites are scheduled to launch at the end of this year. Then we have a very heavy launch cadence planned throughout next year, 2027. Although our expectation has been for Lightspeed to enter full global commercial service around the end of next year, it now looks like we'll enter service about three months later than that, so around Q1 2028. The cause of the slight slip is the readiness of the chips, the ASICs, which power the onboard processor and phased-array antennas of the Lightspeed satellites. These chips are being developed by SatixFy, which some of you…

Thank you, Dan, and good morning, everyone. I'm very pleased to be joining you this morning and to do my first call as Telesat Corporation CFO. My prepared remarks today will focus on highlights from this morning's press release and filings, including our guidance for 2026. Telesat Corporation ended the year 2025 with reported revenue of $418 million, adjusted EBITDA of $213 million, and with $510 million of cash on the balance sheet. In the fourth quarter of 2025, Telesat Corporation reported revenue of $94 million and adjusted EBITDA was $40 million. Revenue in 2025 was in line with our expectations and our guidance. Adjusted EBITDA of $213 million, including $33 million in expenses relating to our equity distribution in Q3 and our debt refinancing process, was well above our guidance of $170 million to $190 million due to higher-than-anticipated capitalized labor to our Lightspeed project, lower-than-expected increase in our headcount, and, except for the equity distribution and debt refinancing expense, lower-than-expected OpEx in our legacy GEO business segment. Interest expense for 2025 totaled $200 million, down from $240 million in 2024 and $270 million in 2023, reflecting our buyback of $857 million of Telesat Canada debt. Non-cash interest expense of $29 million incurred on Telesat Lightspeed financing was capitalized in 2025. Net loss for the year was $530 million compared to $302 million in 2024. The negative variance of $220 million was principally due to reduced revenue and EBITDA, impairment of goodwill relating to our GEO business, and we also recorded an increase in the derivative liability relating to the Telesat Lightspeed financing warrants caused by the meaningful increase in the valuation of the project as we are making strong progress on the development of the constellation. This was partially offset by a foreign exchange gain associated with the…

Thank you. We will now begin the question-and-answer session. If you have dialed in and would like to ask a question, please press star then 1 on your telephone keypad to raise your hand and join the queue. If you are called upon to ask your question and are listening via speakerphone on your device, please pick up your handset to ensure that your phone is not on mute when asking your question. We do request for today's session that you please limit yourself to one question and one follow-up question only. Thank you. Our first question comes from the line of David McFadgen with ATB Capital Markets. Your line is open.

Alright. Hi, guys. So a couple of questions. Maybe I'll start off with the decision to put some of the Lightspeed capacity on the military Ka band. I thought that when you would do that, you would also announce a deal with the Canadian Armed Forces. It's kind of a surprise that you didn't announce that at the same time. Do you still expect a deal with the Canadian Armed Forces? Where would licensing of that military Ka spectrum sit?

Good morning, David. It's Dan. So it was back in December that we announced — well, by we I mean we were joined by the Government of Canada and MDA — and it was announced that MDA and Telesat Corporation had been selected to form a strategic partnership with the Government of Canada to deliver ESCaPE. And what is known about ESCaPE is, well, a few things. One, it's a multi-frequency-band constellation for support in the Arctic of Canada's defense and sovereignty requirements. It's Mil Ka, it is X-band, and UHF — so all spectrum that defense users frequently use. And so, while it was announced back in December, we're still not under contract, which is not a surprise. It takes some time to do that. And so we — and by we, I mean Telesat Corporation and MDA — are currently engaged with the Government of Canada, working on that. We're focused on getting that done sooner than later. And so because we're still negotiating everything and it's not done yet, we can't say exactly what it is the constellation will look like. It is the case that by putting Mil Ka on Lightspeed, Lightspeed is better situated to meet some of those requirements. But we're not in a position to say anything more about that right now. We are focused on getting that contract done certainly before the end of this year.

Okay. So I would imagine that you could also sell that military Ka-band capacity to other defense departments around the world, right? Like, the Canadian Armed Forces isn't going to take the entire 500 megahertz, or is it?

Yeah. Listen. As I said in my remarks, the quantum of Mil Ka capacity that we're bringing to market by proliferating it across all of our satellites is a massive increase. It's a little hard to track this stuff because it's Mil Ka, so you don't know everything. But for instance, the U.S. and its allies use the WGS network. The UK has Skynet. There are other pockets of Mil Ka elsewhere. Historically, it's all been in GEO. But as you can imagine, the amount of capacity across those systems relative to what we're bringing on Lightspeed — whether it's an order-of-magnitude increase — is dramatically higher. And it's not just the sheer quantum of capacity we're bringing. The capacity that we're bringing, the performance characteristics are so much more compelling. It's high throughput, low latency, distributed, which makes it more resilient. It covers the poles, which — there's a heavy focus on the Arctic right now for all sorts of reasons. And so, yes, we will be able to make that capability available not just to the Government of Canada, but to all of the allied nations — NATO and other allied governments. And not to go on for too long here, but there is a significant focus with military planners on having access to these kinds of capabilities given the nature of modern warfare, given the nature of the fact that so many more of the platforms that they use are high-bandwidth consumption platforms, many of which operate autonomously and need these high-throughput, low-latency, very resilient, very secure links. So we think about this as a very significant opportunity for Telesat Corporation, and we caught this at a great time. We caught it early enough in the build-out of Lightspeed so that it's not schedule impactful. As I mentioned in my remarks, the cost is pretty trivial. Because we were already using the commercial Ka and because the military Ka band is immediately adjacent, the changes that needed to be made to accommodate the Mil Ka on Lightspeed were very straightforward. And look, this isn't something that we figured out last week. This is something that we had been thinking about for some time now. So we were able to do some advanced planning work with MDA to make sure that this would be as easy — from a schedule perspective and from a cost perspective — as possible. So we're really pleased about this.

Okay. And maybe I can just follow up on a comment you made. You're talking about ESCaPE, right? ESCaPE — the military wants to be able to have a constellation running at X and UHF. You just want to sign Ka. So do you envision another potential constellation here that you would be able to offer up that would run on X and UHF? Is that a possibility?

It's still a little premature to say. I really want us to get through the good work that's taking place right now with the Government of Canada. Again, we want to move quickly on that. The good news is the Government of Canada, as you probably heard, is very much wanting to streamline and accelerate their procurement processes, so we've got a pretty motivated counterparty to move these discussions along. So all I would say is to stay tuned on that.

And maybe if I can just ask one more — I won't take up too much time — but just for 2026 guidance, it would be really helpful if you can give us an idea on the EBITDA loss as you would expect out of LEO. Because, obviously, I think you can figure it out.

If you look at the guidance, I think what you have there is the total expenditures associated with Lightspeed, both CapEx and OpEx. But we can break it down. I think it's $1.0 billion to $1.2 billion in total, Donald, and can you give a range for what we think the OpEx piece of that—

Included in the $1.0 billion to $1.2 billion, there's somewhere between $90 million to $110 million of OpEx in Lightspeed that we will incur this year, depending on how much labor we're capitalizing. One of the reasons we decided to not show the EBITDA specifically for Lightspeed is that how much labor we are capitalizing versus expensing is always difficult to predict when we're looking forward. But each quarter, we'll report on what it is so that everyone can tell what it is.

Okay. Alright. That's really helpful. Thank you.

Okay. Thank you.

Our next question comes from the line of Caleb Henry with Quilty Space. Your line is open.

Hi. Thanks, guys. Just a question on the launch schedule with the three-month delay. Do you have a sense of how many satellites will be launched by the end of 2027 now?

Yeah. I think we can probably give a sense of that. So, two things. We are still holding our launch schedule for our initial launch, so that is still being focused towards the end of this year. That hasn't changed. Then our expectation is our significant launch cadence will — because we're going to launch those first satellites, and as we said before, we're going to test them extensively before we start launching the rest of the satellites. By the time we launch the first two satellites, do the orbit raising, and then do the amount of testing that we and a bunch of our customers want to do, it'll be sort of mid next year where we kick off with the heavy launch schedule. So by the end of the year, we will have enough satellites in orbit so that we can launch full global commercial coverage, but we've slipped the date back a quarter — you still have to do the orbit raising and whatnot. For us to do full global coverage, that's about 96 satellites. So we should have 96 satellites at least in orbit by the end of next year, and then we're just going to keep going. And so that's the plan.

Okay. And then on the Mil Ka — you talked about the spacecraft side. Can you share any updates on whether that requires any new gateway infrastructure? And then on the user terminal side, will those Mil Ka user terminals be available at the same time as the commercial ones, or where is that in the development cycle?

Yeah. Good question. The gateway — because I mentioned in the opening remarks that the spectrum that we use for the gateway frequencies isn't changing — the gateways are totally unimpacted. And then on the user terminal side, yes, there will be Mil Ka–compatible user terminals for a variety of different platforms — ships, planes, drones, manpacks — that will be available. One of the great things about operating in commercial Ka is that the Mil Ka is adjacent, and so the user terminal partners that we've already been working with — their flat-panel antennas, the modems, and whatnot — can accommodate the addition of the Mil Ka. We'll be engaging with all of our customers, defense and commercial alike, with a good family of advanced flat-panel antennas. And by the way, we talk a lot about flat-panel antennas. The parabolic antennas are still out there, and they are quite efficient, so those will be available too because they are good for certain applications. But yes, those will all be available when we go into service.

Alright. Thank you.

Our next question comes from the line of Edison Yu with Deutsche Bank. Your line is open.

Hey. This is Laura on for Edison, and thanks for taking my question. I want to follow up on that Canadian Arctic military communication constellation topic. Could you provide more sense on the backlog potential from both the Canadian military and the others? And any additional spend you anticipate not just from the spectrum perspective, but for overall efforts required compared to the baseline Lightspeed?

So on ESCaPE, first off, there's a lot of information about ESCaPE that's publicly available. It's been a program of record for the Department of National Defence here for many, many years. But I won't speculate just now on potential backlog impact, nor on impacts to our broader plan — whether that's spending or revenue profile and whatnot. We need to get through this contract negotiation with the Government of Canada. But I will say on backlog creation — less about ESCaPE, but just a broader observation — as I mentioned in our opening remarks, the pipeline of activities for Lightspeed is robust. And a lot of that right now in this environment relates to defense applications — defense and sovereignty applications. And because of that, we are very bullish about our ability to significantly grow our backlog for Lightspeed this year. Our expectation is this time next year, our backlog tied to LEO is fairly dramatically higher than it is today, with the caveat that we've got to sign these deals and with the caveat also that because many of those opportunities are government-related, government opportunities often have a life of their own in terms of closing them. But notwithstanding that, that's our expectation — that we will be closing significant opportunities for Lightspeed this year and that will have a very significant favorable impact on backlog for Lightspeed.

Okay. Gotcha. Appreciate it. Thank you.

And again, if you would like to ask a question, press star then the number one on your telephone keypad. We do have our next question from the line of Walter Piecyk with LightShed Ventures. Your line is open.

Hey, Dan. On the spectrum change, this is probably a tactical, wonky question. I'm not fully understanding because if I went back to, I think it was in 2024 — as you may recall, I was asking about adding additional spectrums, and you referred to that as payloads. And I think at the time, you were like, for the first 198 satellites, the ship has sailed, and it didn't seem like — and I think I've asked this question a couple times on earnings calls — that you couldn't add spectrum because there was obviously some available that was out there to the constellation to broaden out the services. So I'm guessing there's something different because there's a swap out, or whatever it is. Can you explain why that's the case, or maybe if there's some update that, this late in the game, you can actually change the spectrum that's in the constellation?

Yeah. My recollection is when you and others have asked that question in the past, it's mostly been in the context of, like, a D2D — so, can you add spectrum for direct-to-device applications, whether that's L-band or S-band or C-band or whatnot. There, because that spectrum is so far away from the 28 gigahertz band that the commercial Ka band is in, you would need a different payload to transmit on those frequencies, and that would be a very significant change to the satellite. If we wanted to support our existing mission — broadband connectivity in Ka band — and add a direct-to-device payload, for instance, we would need a bigger satellite. It would be a very different thing. What's different here is the military Ka band — as I said, it's also in the 28 gigahertz band. It is contiguous with the commercial Ka band. So we've really just shifted the frequency plan up by 500 megahertz for the user link, and that's a pretty easy modification. So that's the difference.

You're talking to somebody who was a history major. If I had asked our CTO to explain it, you might not have followed us. No, I'm kidding. If we had the CTO get on, those guys drone on forever. Let's just hear on Amazon. It feels like there's a slower rollout. They're getting hazed a little bit by the FCC chairman about their rollout. For you guys, obviously with the progress, you're heading towards this first launch at the end of this year. My question is, because of what's going on at Amazon and your progress, have you found it easier to get the attention of some of these enterprise/government customers? Are you seeing more fluidity there in getting towards contracts than maybe six months ago — both from your progress and also perhaps from Amazon's lack thereof?

I won't comment on Amazon. We're certainly getting more engagement with the customer base, and I'd say particularly the defense, the government customer base. Part of that is we're just getting, as you point out, closer to being in service. A big part of it is demand for this kind of capability has grown dramatically over the last, call it, 12-plus months because of the changes in the geopolitical environment. Some of that's been a function of everybody seeing how the Ukraine hostilities have unfolded and how consequential access to Starlink is in a modern conflict. And when I say Starlink, I really mean an advanced LEO constellation that can support all sorts of things in a battlefield domain — whether that's flying drones, communications with forward operating units, fighter jets — all of that. Part of it is we're getting closer. Part of it is there's a much greater focus on the need to have these kinds of capabilities from a range of suppliers. I think all these governments want to be able to work with a range of different constellation providers, in part just to have more resilience, more diversity, less vendor lock — that kind of rationale. With respect to Amazon, as far as I can tell, they're coming. It's taken them, I think, longer than they had anticipated. They point to the lack of launch opportunities, and we understand that. But I think the forward progress and the traction that we're getting in the market has a lot less to do with their schedule and a whole lot more to do with the capabilities that we're bringing and this moment in time in terms of the geopolitical environment and what customers want. And then I've spoken a lot about defense, but these other verticals that we're focused on also are embracing LEO — whether that's aero, maritime, fixed enterprise, backhaul for MNOs. You're seeing significant traction with LEO. As we get closer to being in service, all of these things have been very favorable tailwinds.

That's very comprehensive. Thank you. And I'm hoping you're planning on some type of launch party because Florida's a lovely place to be in December, especially for us in the Northeast.

Florida is lovely, but our launches will be coming out of Vandenberg.

That's okay — California, that's fine. Even better.

We will be having a lot of launches in the next 18 months, so we'll have a lot of opportunity to celebrate that.

Awesome. Thank you.

Thanks.

That concludes the question-and-answer session. I would like to turn the call back over to our CEO, Dan Goldberg, for closing remarks.

Okay. Well, operator, thank you very much, and thank you all for joining us this morning. We look forward to speaking with you shortly when we release our first quarter results.

Thank you very much.

Ladies and gentlemen, that concludes today's call. Thank you all for joining in. You may now disconnect.