Trusted and Reliable Satellite Solutions
(in millions of euros)
The satellite market is undergoing a transition to a model focused on connectivity services. Data services will triple in size over the next decade, displacing traditional video services, which accounted for 80% of demand until 2024. The industry is entering a phase where universal connectivity and low latency are paramount.
Technological disruption, driven by new NGSO satellite constellations, has redefined the sector, eroding the classic GEO model, with orders at historic lows and a migration toward multi-orbit architectures. However, high-capacity GEO satellites (GEO-HTS) remain attractive for fixed applications with high SLA requirements and are heavily supported by new sovereignty requirements, while LEO services dominate applications requiring high scalability, mobility, and low latency.
In this context, the combination of services under multi-orbit schemes emerges as a premium solution for critical segments, although its widespread adoption is expected in the next decade.
In this highly complex and highly competitive environment, the results obtained by the group in 2025 continue to adjust the accounting valuation of non-financial assets to the sector environment. Isolating the effect of these types of adjustments and others of an extraordinary nature, the net profit for the year would be €13.5 million, exceeding the €8.3 million of the comparable pro-forma net profit for 2024.
The satellite market is undergoing a transition to a model focused on connectivity services. Data services will triple in size over the next decade, displacing traditional video services, which accounted for 80% of demand until 2024. The industry is entering a phase where universal connectivity and low latency are paramount.
Technological disruption, driven by new NGSO satellite constellations, has redefined the sector, eroding the classic GEO model, with orders at historic lows and a migration toward multi-orbit architectures. However, high-capacity GEO satellites (GEO-HTS) remain attractive for fixed applications with high SLA requirements and are heavily supported by new sovereignty requirements, while LEO services dominate applications requiring high scalability, mobility, and low latency.
In this context, the combination of services under multi-orbit schemes emerges as a premium solution for critical segments, although its widespread adoption is expected in the next decade.
In this highly complex and highly competitive environment, the results obtained by the group in 2025 continue to adjust the accounting valuation of non-financial assets to the sector environment. Isolating the effect of these types of adjustments and others of an extraordinary nature, the net profit for the year would be €13.5 million, exceeding the €8.3 million of the comparable pro-forma net profit for 2024.
Operating income
In 2025, the Group’s total operating revenue reached €212.1 million. This amount represents an 11.2% decrease compared to 2024, affected by the disruptive and highly competitive environment described above.
This reduction has been more pronounced in the American market, heavily influenced by the bankruptcy proceedings of one of its main clients in Brazil, as well as by the gradual decline in revenue from the video business and the delay in the execution of government projects in the region.
The sale of managed services represents approximately 42% of the company’s commercial revenue in 2025, consolidating Hispasat’s dual role as a wholesale provider of space capacity and as a provider of value-added services.
Of total consolidated operating revenue, revenue represents 92.4% and stood at €195.9 million, corresponding to income from space capacity leasing, teleport services, and the provision of managed services.
This reduction has been more pronounced in the American market, heavily influenced by the bankruptcy proceedings of one of its main clients in Brazil, as well as by the gradual decline in revenue from the video business and the delay in the execution of government projects in the region.
The sale of managed services represents approximately 42% of the company’s commercial revenue in 2025, consolidating Hispasat’s dual role as a wholesale provider of space capacity and as a provider of value-added services.
Of total consolidated operating revenue, revenue represents 92.4% and stood at €195.9 million, corresponding to income from space capacity leasing, teleport services, and the provision of managed services.
Operating expenses
Consolidated operating expenses totaled €111.5 million, representing an overall year-on-year reduction of 6.9%.
Overall, excluding personnel expenses, the efficiency plan resulted in aggregate savings of over 15.3%. Cumulatively, over the last two fiscal years, the reduction has reached €21.1 million, representing a cumulative adjustment effort of 23%.
Personnel expenses increased due to both the increase in average staff size, necessary to support the development of the IRIS project, and the expenditure allocated to extraordinary remuneration resulting from the Group’s management restructuring.
Throughout the year, Hispasat maintained and intensified the application of its policies and processes aimed at maximizing operational efficiency, while simultaneously implementing an operating expense adjustment plan. This plan identified operational efficiencies and synergies in space capacity procurement resulting from the integration of the retail business.
Furthermore, during 2025, improvements were made to the processes of revenue assurance and prior validation of the credit quality of customers, continuing the initiatives launched in previous years and whose tangible results have been reflected both in the evolution of trade receivables and in the reduction of provisions to cover potential risks of insolvency of the trade portfolio.
Personnel expenses increased due to both the increase in average staff size, necessary to support the development of the IRIS project, and the expenditure allocated to extraordinary remuneration resulting from the Group’s management restructuring.
Throughout the year, Hispasat maintained and intensified the application of its policies and processes aimed at maximizing operational efficiency, while simultaneously implementing an operating expense adjustment plan. This plan identified operational efficiencies and synergies in space capacity procurement resulting from the integration of the retail business.
Furthermore, during 2025, improvements were made to the processes of revenue assurance and prior validation of the credit quality of customers, continuing the initiatives launched in previous years and whose tangible results have been reflected both in the evolution of trade receivables and in the reduction of provisions to cover potential risks of insolvency of the trade portfolio.
Operating profit (EBITDA)
The profit of the companies consolidated using the equity method was €35.9 million, which corresponds largely to activities similar to Hispasat’s business and, consequently, contributes to the operating profit (EBITDA) figure. Of this amount, €20 million corresponds to the reversal of the accounting impairment on the investment in the subsidiary, adjusted in 2016.
Based on the evolution of the above items, the resulting consolidated EBITDA at the end of 2025 stands at €136.5 million, representing an operating margin of 64.4%.
The profit of the companies consolidated using the equity method was €35.9 million, which corresponds largely to activities similar to Hispasat’s business and, consequently, contributes to the operating profit (EBITDA) figure. Of this amount, €20 million corresponds to the reversal of the accounting impairment on the investment in the subsidiary, adjusted in 2016.
Based on the evolution of the above items, the resulting consolidated EBITDA at the end of 2025 stands at €136.5 million, representing an operating margin of 64.4%.
Investments in tangible and intangible fixed assets carried out during fiscal year 2025, excluding the accounting effect of the application of IFRS 16, reached €15.1 million. Compared to the previous year on a like-for-like basis, this represents a reduction of almost 37%, in line with the efficiency guidelines implemented by Hispasat.
The operational investments undertaken were primarily allocated to monitoring and broadband systems, the systems plan to modernize and digitize its commercial, operational, and business processes, as well as various improvements or implementations to the infrastructure comprising the ground control segment.
Regarding long-term leases classified as investments under IFRS 16, the Group allocated €3.3 million in 2025.
The operational investments undertaken were primarily allocated to monitoring and broadband systems, the systems plan to modernize and digitize its commercial, operational, and business processes, as well as various improvements or implementations to the infrastructure comprising the ground control segment.
Regarding long-term leases classified as investments under IFRS 16, the Group allocated €3.3 million in 2025.
Cash flow
HispaSat’s operating cash flows in 2025 totaled €57.3 million. The negative change in working capital of €32.3 million is primarily due to the repayment of a large portion of the subsidy to the retail operator for the “Conéctate-35” project, which resulted in a cash outflow of €22 million.
Of the total operating cash flows, €20.5 million was allocated to capital expenditures for fixed assets (tangible and intangible). Regarding financing cash flows, in 2025, €50.8 million in structured bank debt maturities were covered, along with €23.2 million in repayments during the year from the Group’s credit lines. Additionally, €14 million was drawn down from the credit lines during the year.
Additionally, financing cash flows also include payments for leases classified under IFRS 16, totaling €19 million.
Overall, the net balance between cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities, adjusted for the effect of exchange rate fluctuations, resulted in a net outflow of cash and cash equivalents for the year of €44.5 million.
HispaSat’s operating cash flows in 2025 totaled €57.3 million. The negative change in working capital of €32.3 million is primarily due to the repayment of a large portion of the subsidy to the retail operator for the “Conéctate-35” project, which resulted in a cash outflow of €22 million.
Of the total operating cash flows, €20.5 million was allocated to capital expenditures for fixed assets (tangible and intangible). Regarding financing cash flows, in 2025, €50.8 million in structured bank debt maturities were covered, along with €23.2 million in repayments during the year from the Group’s credit lines. Additionally, €14 million was drawn down from the credit lines during the year.
Additionally, financing cash flows also include payments for leases classified under IFRS 16, totaling €19 million.
Overall, the net balance between cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities, adjusted for the effect of exchange rate fluctuations, resulted in a net outflow of cash and cash equivalents for the year of €44.5 million.
Financial debt
Net debt at year-end, including guarantees granted to third parties, was €101.7 million, down from €157.7 million at year-end 2024, mainly due to principal repayments on export loans related to the financing of satellites in orbit, which were made in 2025.
The book value of bank debt stood at €136.5 million as of December 31, 2025, a decrease of 32% compared to the previous year.
The average maturity of outstanding structured bank debt at year-end was 5.5 years.
The book value of bank debt stood at €136.5 million as of December 31, 2025, a decrease of 32% compared to the previous year.
The average maturity of outstanding structured bank debt at year-end was 5.5 years.
Liquidity and capital resources
As of December 31, 2025, the liquidity position reaches €308.2 million (€58.2 million of available cash and €257.7 million of undrawn credit lines).
The Group maintains a liquidity policy that ensures it can meet its payment obligations, diversifying its financing needs and debt maturities.
Its liquidity position is primarily based on the sustained generation of cash flows from its operations, with a significant portfolio of long-term contracts. This, combined with existing financial capacity thanks to the availability of both short- and long-term credit lines, allows the Group to prudently manage liquidity risk.
The Group continues to have a strong liquidity position to guarantee its operating cash flow needs and debt maturities in the coming years.
The Group maintains a liquidity policy that ensures it can meet its payment obligations, diversifying its financing needs and debt maturities.
Its liquidity position is primarily based on the sustained generation of cash flows from its operations, with a significant portfolio of long-term contracts. This, combined with existing financial capacity thanks to the availability of both short- and long-term credit lines, allows the Group to prudently manage liquidity risk.
The Group continues to have a strong liquidity position to guarantee its operating cash flow needs and debt maturities in the coming years.
Trusted and Reliable Satellite Solutions