SES S.A. Annual Report - How They Did This Year

I’ve put together this guide to help you understand how SES S.A. performed this year. Instead of digging through dense financial filings, I’ve broken down the key points to give you a clear picture of the company’s health and future.

1. What does this company do?

SES is a major player in the satellite industry, acting as a "highway in the sky." They own and operate a massive fleet of over 70 satellites in Geostationary and Medium Earth orbits to beam video, data, and internet connectivity globally.

The company earns money through two main segments: SES Video, which provides broadcast services to over 8,000 channels, and SES Networks, which provides data connectivity for government, maritime, and aviation customers. Last year, the company reported total revenue of roughly €2.03 billion.

2. A Major Transformation: The Intelsat Acquisition

SES is a different company than it was a year ago. On July 17, 2025, SES acquired Intelsat for about $3.1 billion. This move combines two of the biggest names in the satellite world. The new entity has a backlog of over $10 billion in future contracted revenue. While this increases the company’s scale, they are now in a complex integration process, with plans to capture at least $2.4 billion in cost synergies over the coming years.

3. Financial Health and "Spring Cleaning"

The company is currently cleaning up its balance sheet. They reviewed past investments and recognized €450 million in non-cash charges, adjusting the value of "goodwill" to better reflect the current cash-generating potential of older assets.

SES also carries significant debt, with a debt-to-profit ratio of about 3.5x. They must maintain disciplined spending to cover annual interest payments of over €200 million while continuing to fund new technology investments.

4. Major Wins and Challenges

• The Win: Modernization. By launching new satellites like O3b mPOWER 7 and 8, SES offers faster, better connectivity. These satellites provide high-speed, low-latency broadband, helping them compete with newer, low-orbit providers.
• The Hurdle: The "tech race." Because they must constantly replace satellites, they spend over €700 million annually. If new technology underperforms or competitors offer cheaper alternatives, their profit margins—currently around 55%—could face pressure.

5. What Could Go Wrong?

Investing in satellites carries physical and operational risks:

• Launch & In-Orbit Failures: Satellites cost between $200 million and $400 million each. A failed launch or technical glitch can result in a total loss, which may not be fully covered by insurance, potentially impacting both finances and reputation.
• Supply Chain Bottlenecks: SES relies on a limited number of manufacturers, such as Boeing and Airbus. Delays at these firms can stall growth plans, as SES cannot easily switch suppliers.
• Customer Loyalty: SES relies on 5-to-10-year contracts. If they cannot renew these, or if big customers demand lower prices, it directly impacts revenue stability.

6. A Note for Investors

SES is now a larger, more complex business. The Intelsat integration will be the primary narrative for the next year. To gauge the company's progress, watch how they manage their debt levels and maintain their credit rating. Monitoring quarterly profit and cash flow will help you determine if the Intelsat deal is successfully creating long-term value for shareholders.