Space42 revenue rises as satellite services gain from $700 million contract

Dubai: Space42 reported higher first-quarter revenue and strong margins, helped by record quarterly performance in its Space Services business and continued demand from government customers.

The Abu Dhabi-listed AI-powered SpaceTech company said revenue reached $116 million in the three months to March 31, 2026, supported by a 15% rise in Space Services revenue. The division recorded its strongest first-quarter performance, marking a fourth straight quarter of revenue expansion.

The performance was driven by a government business that benefited from a $700 million, 15-year capacity services contract that began on July 1, 2025, following the launch of the Thuraya-4 satellite.

Space42 said the growth path is expected to continue during 2026 as new government and commercial applications are launched.

Space Services drives growth

Space Services remains the main growth driver for the company, with Thuraya-4 operations continuing to ramp up. The satellite is one of the largest geostationary mobile satellite services platforms ever produced and is linked to the majority of 16 new products expected to support revenue growth from 2026.

Space42 also progressed the formation of Equatys with Viasat, a partnership designed to provide direct-to-device satellite connectivity at global scale. The platform will use standards-based 5G non-terrestrial network technology to serve mobile network operators and expand coverage across remote and underserved areas.

The company said Equatys will be supported by more than 100 MHz of globally harmonised spectrum, a partner-led commercial model and a scalable global architecture.

Strong cash position

Space42 ended the quarter with more than $1 billion in cash and $6.4 billion in contracted future revenues, giving the company financial capacity to execute its long-term strategy.

The balance sheet strength comes as the company continues to invest in satellite infrastructure, AI-enabled geospatial platforms, secure connectivity and autonomous mobility partnerships.

Karim Michel Sabbagh, Managing Director of Space42, said, “In Q1 2026 Space42 maintained momentum with another quarter of year-on-year revenue growth, rigorous cost discipline and a relentless focus on strategic execution. The business delivered a strong financial performance during a period of regional unrest, reflecting the resilience of our operating model and the firm foundations we have laid.”

He added, “The strong performance also underscored the dual-use remit of Space42. Space Services delivered its highest-ever Q1 revenue while Smart Solutions continued its strategic transformation toward programmatic, higher-value engagements aligned to our core capabilities. We continue to invest in the infrastructure, partnerships, and capabilities that will define Space42 in the years to come.”

Smart Solutions refocuses

Smart Solutions continued its strategic and operational transformation during the quarter, with a focus on scalable engagements linked to Earth observation, geospatial analytics and AI.

Space42 completed in-orbit testing of the Foresight-3, Foresight-4 and Foresight-5 satellites, developed with ICEYE and launched in November 2025. Commercial operations are expected to begin in the second quarter of 2026, strengthening the company’s dual-use geospatial capabilities.

The company also signed a memorandum of understanding with the International Fund for Houbara Conservation to use aerial imaging and unmanned aerial systems for wildlife monitoring and biodiversity protection. The project will use high-resolution imagery and AI analytics.

Space42 said it also advanced development of Mira Aerospace’s ApusNeo18 and next-generation ApusNeo30 high-altitude platform systems, preparing the business for larger-scale commercial use.

AI platform expands

Space42 continued to scale its GIQ platform, which is now available on the Microsoft Azure marketplace. The platform has been expanded with purpose-built applications in disaster management, infrastructure monitoring, defence and security.

The company’s growth strategy is built around four core pillars, including premium geospatial data, geospatial intelligence AI platforms, non-terrestrial connectivity and secure connectivity. Autonomous mobility has also been identified as a sector priority.

In secure connectivity, Space42 said the Al Yah 4 and Al Yah 5 satellite programme remains on schedule and within budget. The programme is supported by a $5.1 billion, 17-year government contract.

The company has completed the spacecraft preliminary design review, with the critical design review expected to be completed in the first half of 2026. The next-generation satellites are expected to strengthen national secure communication capabilities across defence and civil uses, generating $300 million in annual revenue from the fourth quarter of 2026.

Space42 is also advancing non-geostationary broadband capabilities through a multi-orbit strategy that includes low Earth orbit and medium Earth orbit systems. The strategy is intended to complement Al Yah 4 and Al Yah 5 while adding low-latency communication capabilities.

Abu Dhabi mobility push

Space42 also expanded its autonomous mobility partnerships during the quarter.

The company signed an agreement with Abu Dhabi Mobility to develop a sovereign integrated mapping platform for Abu Dhabi. The platform is expected to support decision-making across transport, infrastructure, environment and smart city planning.

A separate agreement with Autonomous A2Z aims to establish an Abu Dhabi-based entity deploying Level-4 autonomous driving solutions across the Middle East and Africa.

Space42 also signed an agreement with Abu Dhabi Police to develop smart security and autonomous vehicle systems, supporting the expansion of AI-enabled mobility solutions and smart mobility infrastructure.