Cash exceeds $1.1 billion as contracted backlog reaches $6.3 billion.
Dubai: Space42 reported record first-half revenue, driven by growth across its satellite services and geospatial intelligence businesses, while continuing preparations for the commercial launch of direct-to-device connectivity services for standard mobile phones.
Revenue rose 15% year on year to $260 million in the six months ended June 30, driven by the strongest first-half performance from the Space Services business and increasing demand for Smart Solutions.
Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) increased 12% compared with the same period last year.
The Abu Dhabi-listed company ended the first half with more than $1.1 billion in cash and a contracted backlog of $6.3 billion, providing strong revenue visibility and financial capacity to support its long-term strategic initiatives.
Satellite services deliver record performance
Revenue from Space Services increased 15%, driven by strong government demand and contributions from a $700 million capacity services contract that came into effect on July 1, 2025.
The 15-year agreement followed the successful launch of the Thuraya-4 satellite, with Space42 expecting the division to deliver its strongest full-year performance in 2026.
Karim Michel Sabbagh, Managing Director of Space42, said the company’s core operating businesses sustained their strong momentum during the first half of the year.
Revenue from the Smart Solutions business increased 14% during the first half, following more than a doubling in the second quarter, driven by strong government demand for Earth observation, geospatial intelligence, and situational awareness services.
During the period, the Foresight-3, Foresight-4, and Foresight-5 satellites became fully operational, expanding Space42’s ability to deliver geospatial data to government and commercial customers.
The company also continued enhancing its GIQ platform, available through the Microsoft Azure Marketplace, by introducing automated satellite data ordering, additional artificial intelligence models, and new applications.
Direct-to-device rollout targeted by year-end
Space42 and Skylo Technologies successfully completed tests of direct-to-device SMS and SOS services on standard mobile phones using the Thuraya-4 satellite.
The commercial rollout of the direct-to-device service is expected by the end of 2026, with additional government and commercial applications planned for launch throughout the year.
Space42 also advanced the formation of Equatys in partnership with Viasat, a venture that aims to deliver global direct-to-device connectivity through an open, standards-based 5G non-terrestrial network.
The planned network will be supported by more than 100MHz of harmonised spectrum across international markets.
New satellites expected to generate $300 million annually
The Al Yah 4 and Al Yah 5 satellite programme remained on schedule and within budget, with the critical design review substantially completed.
The programme is supported by a 17-year government contract valued at $5.1 billion and is expected to generate annual revenue of around $300 million from the fourth quarter of 2026.
Space42 is also advancing a multi-orbit strategy designed to add low-latency broadband services through low Earth orbit (LEO) and medium Earth orbit (MEO) satellites, complementing the secure connectivity capabilities of Al Yah 4 and Al Yah 5.
Development also continued on Mira Aerospace’s high-altitude platform systems, including enhancements to the ApusNeo18 platform and the start of manufacturing for the first ApusNeo30 prototype.
Autonomous driving venture progresses
Space42 continued preparations for its joint venture with Autonomous A2Z to deploy Level 4 autonomous driving services across the Middle East and Africa.
During the first half, efforts focused on establishing the venture’s legal framework, governance structure, and commercial model.
The company also signed an agreement with Abu Dhabi Mobility to develop a national geospatial navigation platform that will integrate mapping and spatial services across Abu Dhabi.
“Equally important, Space42 demonstrated strong operational resilience and business continuity, maintaining uninterrupted execution despite a constantly evolving operating environment,” Sabbagh said.
“We enter the second half of the year with strong momentum and confidence, continuing to invest in our four strategic pillars, unique capabilities, and focused partnerships that will shape Space42’s long-term competitive advantage and create lasting value.”
Share buyback planned for third quarter
Shareholders have approved a share buyback programme covering up to 2.5% of Space42’s issued share capital during the company’s General Assembly meeting.
The programme is expected to commence in the third quarter of 2026, subject to approval from the Abu Dhabi Securities Exchange.
Space42 said the planned buyback reflects management’s confidence in the company’s long-term growth prospects and its belief that the current share price does not fully reflect the business’s underlying value.
