Space42 Net Profit Rises 31% To Dh180 Million On Strong Government Demand

(MENAFN- Khaleej Times) Space42 reported a 31 per cent year-on-year increase in net profit to $49 million during the first nine months of 2026, supported by stronger government demand for satellite communications, geospatial intelligence and AI-powered solutions.

The Abu Dhabi-listed company said revenue rose 11 per cent to $404 million, while normalised earnings before interest, taxes, depreciation and amortisation increased 30 per cent to $194 million.

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The normalised Ebitda margin reached 48 per cent, reflecting improved profitability in the company's Smart Solutions business, which recorded its second consecutive quarter of profitable growth.

Satellite services drive growth

Space42's Space Services division recorded revenue of $340 million, an increase of 11 per cent year-on-year, marking its strongest nine-month performance to date.

The growth was supported by government contracts, including a $700 million, 15-year capacity services agreement that commenced in July 2025 following the successful launch of the Thuraya-4 satellite.

The company's Smart Solutions division reported a 16 per cent increase in revenue, driven by higher government demand for geospatial intelligence, Earth observation and situational awareness services.

Karim Michel Sabbagh, Managing Director of Space42, said the results reflected growth across both business divisions and continued progress in implementing the company's strategy.

“Space42 has delivered another outstanding performance, with both business units delivering double-digit revenue growth during the nine-month period,” he said.

Expansion in satellite connectivity and AI

Space42 continued expanding its satellite and AI-powered services during the period, including the entry into service of its Foresight-3, Foresight-4 and Foresight-5 satellites.

The company said imagery from the satellites is now being commercialised across applications serving both civilian and security-related needs.

Space42 also signed a binding agreement with Viasat to establish Equatys, a shared satellite and ground infrastructure platform designed to support direct-to-device connectivity and advanced mobile satellite services.

Meanwhile, Thuraya-4 operations continued expanding in South Africa, with the rollout of compatible smart devices supporting satellite-based voice and messaging services.

The company also reported continued progress on its Al Yah 4 and Al Yah 5 satellite programme, backed by a $5.1 billion, 17-year government contract.

Autonomous mobility and international projects

As part of its expansion into AI-enabled mobility, Space42 signed its first commercial agreement with South Korean autonomous driving company Autonomous A2Z to support the deployment of Level 4 autonomous mobility solutions in the UAE.

The company's Mira Aerospace unit also began wildfire monitoring operations in Spain in collaboration with Telespazio Ibérica, using high-altitude platform technology to support real-time monitoring and emergency response.

Strong cash position

Space42 ended September with more than $1.3 billion in cash and short-term deposits and contracted future revenue of $6.2 billion.

The company reported net cash of $747 million, while cash capital expenditure totalled $134 million during the nine-month period.

Space42 also progressed its share buyback programme, which covers up to 2.5 per cent of its issued share capital, with approximately 37 per cent completed by the end of September.

The company said its financial position and contracted revenue would support continued investment in satellite infrastructure, AI-powered geospatial services and secure connectivity.

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