Space42 revenue rises 15%, satellite-to-phone services near rollout

Dubai: Space42 reported record first-half revenue after growth across its satellite services and geospatial intelligence businesses, while preparations continued for the commercial rollout of direct-to-device services on standard mobile phones.

Revenue increased 15% year on year to $260 million during the six months ended June 30, supported by the strongest first-half performance from Space Services and growing demand for Smart Solutions.

Normalised earnings before interest, tax, depreciation and amortisation increased 12% compared with the corresponding period last year.

The Abu Dhabi-listed company ended the period with more than $1.1 billion in cash and a contracted backlog of $6.3 billion, providing visibility over future revenue and capacity to fund its strategic plans.

Satellite services deliver record performance

Space Services revenue increased 15%, supported by government business and the contribution from a $700 million capacity services contract that began 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 annual performance during 2026.

Karim Michel Sabbagh, Managing Director of Space42, said the company’s operating businesses maintained their momentum during the first half.

Smart Solutions revenue grew 14% during the first half after more than doubling in the second quarter, driven by government demand for Earth observation, geospatial intelligence and situational awareness services.

The Foresight-3, Foresight-4 and Foresight-5 satellites became fully operational during the period, expanding the company’s capacity to collect geospatial data for government and commercial customers.

Space42 also continued to develop its GIQ platform, which is available through the Microsoft Azure marketplace, with automated satellite-data ordering, additional artificial intelligence models and new applications added during the period.

Direct-to-device rollout targeted by year-end

Space42 and Skylo Technologies successfully tested direct-to-device SMS and SOS services on standard mobile devices through the Thuraya-4 satellite.

Commercial rollout is expected by the end of 2026, with new government and commercial applications scheduled to launch throughout the year.

The company also progressed the formation of Equatys with Viasat, which plans to provide global direct-to-device connectivity through an open, standards-based 5G non-terrestrial network.

The planned network will be supported by more than 100 MHz of harmonised spectrum across international markets.

New satellites to generate $300 million annually

The Al Yah 4 and Al Yah 5 satellite programme remained on schedule and within budget, with its critical design review substantially completed.

The programme is backed by a $5.1 billion government contract covering 17 years and is expected to generate annual revenue of $300 million from the fourth quarter of 2026.

Space42 is also developing a multi-orbit strategy that would add low-latency broadband services through low and medium Earth orbit satellites, complementing the secure connectivity offered by Al Yah 4 and Al Yah 5.

Development work continued on Mira Aerospace’s high-altitude platform systems, including improvements to the ApusNeo18 platform and the start of manufacturing for the first ApusNeo30 prototype.

Autonomous driving venture progresses

Space42 continued preparations for a joint venture with Autonomous A2Z to deploy Level 4 autonomous driving services across the Middle East and Africa.

Work during the first half focused on the venture’s legal, governance and commercial structure.

The company also signed an agreement with Abu Dhabi Mobility to develop a national geospatial navigation platform that will consolidate maps and spatial services across Abu Dhabi.

“Equally important, Space42 demonstrated outstanding operational resilience and business continuity, ensuring uninterrupted execution despite a dynamic operating environment,” Sabbagh said.

“We enter the second half of the year with strong momentum and renewed confidence, continuing to invest in our four strategic pillars, differentiated capabilities, and focused partnerships that will define Space42's long-term competitive advantage and create enduring value.”

Share buyback planned for third quarter

Shareholders approved a buyback programme covering up to 2.5% of Space42’s issued share capital during the company’s General Assembly meeting.

The programme is scheduled to begin during the third quarter of 2026, subject to approval from the Abu Dhabi Securities Exchange.

Space42 said the proposed buyback reflects its confidence in the company’s longer-term prospects and its view that the current share price does not represent the intrinsic value of the business.