ABU DHABI (WAM)
Space42 on Thursday announced its consolidated revenues of $116 million for the first quarter of 2026, underpinned by record Q1 performance in Space Services, which saw revenues rise by 15 percent, marking the fourth consecutive quarter of revenue expansion.
The growth was driven by a robust government business which continued to benefit, year-on-year, from the $700 million, 15-year capacity services contract that commenced on 1st July 2025, following the successful launch of the Thuraya-4 satellite.
This trajectory is set to continue as new government and commercial applications are launched during 2026.
Space42's EBITDA reached $52 million, while net profit stood at $5 million, with a profit margin of 4 percent.
Smart Solutions continued its strategic and operational transformation as it refocused on scalable and programmatic engagements aligned to its core capabilities of Earth Observation, geospatial analytics, and AI.
Space42 maintained a strong balance sheet, closing the quarter with more than $1 billion in cash and $6.4 billion in contracted future revenues, providing significant capacity to execute its strategy.
Karim Michel Sabbagh, Managing Director of Space42, said the company maintained momentum in the first quarter through revenue growth, cost discipline, and strategic execution despite regional challenges.
"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," he added.
During the quarter, Space42 completed in-orbit testing of the Foresight-3, -4 and -5 satellites developed with ICEYE, with commercial operations expected to begin in the second quarter of 2026.
The company also signed an MoU with the International Fund for Houbara Conservation to deploy aerial imaging and unmanned aerial systems for wildlife monitoring and biodiversity protection, leveraging high-resolution imagery and AI analytics.
It also continued advancing the development of Mira Aerospace's ApusNeo18 and next-gen ApusNeo30 High Altitude Platform Systems (HAPS), paving the way for large-scale commercialisation.
In geospatial intelligence AI platform and services, Space42 continued scaling of the GIQ platform, now available on the Microsoft Azure marketplace, recently enhanced by the addition of new purpose-built applications in the domains of disaster management and infrastructure monitoring, as well as in defence and security.
Regarding the Non-Terrestrial Connectivity (NTN), the company continued the ramp-up of Thuraya-4 operations, one of the largest geostationary Mobile Satellite Services (MSS) platforms ever produced, underpinned by a $700 million 15-year government contract and the successful launch of the majority of the related 16 new products, expected to drive revenue growth starting in 2026.
It also significantly progressed the formation of Equatys, in partnership with Viasat, to provide Direct-to-Device satellite connectivity on a global scale.
The standards-based 5G NTN open architecture will serve Mobile Network Operators (MNOs), delivering coverage across remote and underserved areas, supported by over 100 MHz of globally harmonised spectrum, a partner-led commercial model, and a globally scalable architecture.
Supported by a $5.1 billion, 17-year government contract, the Al Yah 4 and Al Yah 5 satellite programme remains on schedule and budget, with the Spacecraft Preliminary Design Review finalised and the Critical Design Review expected to be completed within H1.
These next-generation assets will enhance national secure communication capabilities across defence and civil domains, generating $300 million of annual revenues from Q4 2026 onward.
The company also achieved advancement in non-geostationary (LEO, MEO) broadband capabilities under a new multi-orbit strategy with a sovereign role, to complement Al Yah 4 and Al Yah 5 and support secure communications while adding low-latency NGSO capabilities.
It signed an MoU with the Integrated Transport Centre (ITC), an affiliate of the Department of Municipalities and Transport, to develop a sovereign, integrated mapping platform for Abu Dhabi. The platform will serve as a foundational layer for data-driven decision-making across the transport, infrastructure, environment, and smart city domains.
Space42 also signed an MoU with Autonomous A2Z to establish an Abu Dhabi-based entity deploying Level-4 autonomous driving solutions across the Middle East and Africa.
Additionally, it signed an MoU with Abu Dhabi Police to develop smart security and autonomous vehicle systems, supporting the expansion of AI-enabled mobility solutions whilst contributing to the development of a safe and sustainable smart mobility ecosystem.