Abu Dhabi: TECHz – News Desk
Space42 has reported higher first-quarter revenues and sustained profitability for the three months ended March 31, 2026, supported by growth in its satellite services business and continued execution of its long-term strategic initiatives.
The Abu Dhabi-listed company recorded revenues of USD 116 million during the quarter, driven primarily by strong performance in its Space Services division, where revenues increased 15% year-on-year. The company said the growth marked the fourth consecutive quarter of revenue expansion and was supported by government business linked to a USD 700 million, 15-year capacity services contract that began on July 1, 2025 following the launch of the Thuraya-4 satellite.
Space42 said it maintained strong profitability while continuing to invest in strategic growth areas. EBITDA stood at USD 52 million with a 45% margin, while normalized EBITDA reached USD 53 million. Net profit for the quarter was USD 5 million.
The company ended the quarter with more than USD 1 billion in cash and short-term deposits, alongside USD 6.4 billion in contracted future revenues, reinforcing its financial position and long-term visibility.
Managing Director Karim Michel Sabbagh said the company delivered strong results despite regional instability.
Karim Michel Sabbagh, Managing Director, Space42: “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. 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.”
The company continued advancing its four strategic pillars during the quarter, including geospatial intelligence, satellite connectivity, secure communications and autonomous mobility.
In geospatial intelligence, Space42 completed in-orbit testing of the Foresight-3, 4 and 5 satellites developed in partnership with ICEYE, with commercial operations expected to begin in the second quarter of 2026.
The company also expanded its AI-driven geospatial intelligence capabilities through its GIQ platform, which is now available on the Microsoft Azure Marketplace and includes applications for disaster management, infrastructure monitoring, defence and security.
In satellite connectivity, the company continued scaling operations for Thuraya-4, one of the world’s largest geostationary mobile satellite services platforms. It also advanced the formation of Equatys in partnership with Viasat to provide direct-to-device satellite connectivity using standards-based 5G non-terrestrial network architecture.
Meanwhile, the Al Yah 4 and Al Yah 5 satellite programme, backed by a USD 5.1 billion, 17-year government contract, remained on schedule and budget. The next-generation satellites are expected to generate USD 300 million in annual revenues from the fourth quarter of 2026 onward.
Beyond satellite infrastructure, Space42 expanded its autonomous mobility ambitions through several strategic agreements in Abu Dhabi.
The company signed a memorandum of understanding with the Integrated Transport Centre to develop an integrated mapping platform for Abu Dhabi, aimed at supporting transport, infrastructure and smart city planning.
Additional agreements were signed with Autonomous A2Z to deploy Level-4 autonomous driving solutions across the Middle East and Africa, and with Abu Dhabi Police to develop smart security and autonomous vehicle systems.
The company said it remains focused on expanding digital infrastructure, secure communications and AI-powered mobility solutions as it pursues long-term growth opportunities across global markets.
