Revenue fell 19% year-on-year to $629m, mainly due to temporary delays in a major Bayanat Smart Solutions programme and the Thuraya-3 service anomaly at Yahsat Space Services.
UAE-based AI-powered SpaceTech company Space42 has reported financial performance, with EBITDA reaching $317m and a significant margin increase of 8% points. The company maintains a strong balance sheet, ending the year with a cash position exceeding $1.1bn. This performance reflects Space42s continued focus on operational efficiency and disciplined capital allocation as it progresses in executing its long-term strategy.
Since its launch, Space42 has pursued four key objectives: becoming the preferred provider of premium geospatial data, leading in AI-driven geospatial intelligence, establishing dominance in non-terrestrial mobile connectivity and reinforcing its position as a provider of secure communication solutions.
In the realm of Earth Observation and geospatial analytics, Space42 has made significant advancements. In August 2024, in collaboration with ICEYE, the company launched Foresight-1, the UAEs first Synthetic Aperture Radar (SAR) satellite. A second satellite was launched in January 2025, with the Foresight system set to become operational later this year. Additionally, in December 2024, Space42 and ICEYE announced a strategic joint venture to manufacture SAR satellites in the UAE, aligning with the countrys National Space Strategy 2030.
Further strengthening its geospatial capabilities, Space42 signed an agreement in February 2025 with FADA, an EDGE company, to establish a joint venture for a fully integrated Earth Observation ecosystem in the UAE. This initiative will provide dual-use capabilities for both government and commercial applications. In the same month, Space42 and EDGE entered a partnership valued at over $100m, leveraging data from the Foresight constellation to provide real-time geospatial intelligence for defence, security and environmental applications.
Space42 is also reinforcing its leadership in satellite communications. In January 2025, the company launched the Thuraya-4 satellite, significantly enhancing its mobile satellite services with expanded coverage, improved security and greater bandwidth. As a founding member of the Mobile Satellite Services Association (MSSA), established in 2024, Space42 is driving the integration of terrestrial and non-terrestrial network services to enable affordable connectivity for billions of devices.
The company is advancing the procurement of two next-generation GEO satellites, Al Yah 4 and Al Yah 5, following the signing of a $5.1bn, 17-year contract with the UAE Government in November 2024.
Karim Michel Sabbagh, Managing Director of Space42, commented: “We are diligently executing on our strategic objectives. In just a few months since its founding, Space42 has significantly enhanced its upstream and downstream Earth Observation capabilities, reinforced its leadership in secure connectivity solutions, and laid the foundation for its next-generation mobile satellite solutions capabilities with the launch of the Thuraya-4 satellite.
“As a founding member of the MSSA and with a strong balance sheet and a revenue backlog exceeding $7bn, we are well positioned to develop the next generation of non-terrestrial networks to unlock the direct-to-device opportunity, bringing connectivity to billions of customers.
“The execution of our strategy is guided by five principles. First, we focus on programmatic growth with major programmes kicking off in 2025, our recently announced multi-year engagements as a case in point. Second, we pursue strategies where we can sustain a distinct advantage as demonstrated through our Foresight system and the associated GIQ platform. Third, we invest in our economic and human capital to build differentiated capabilities that evolve and grow over time. Fourth, we are expanding globally as exhibited through our recent SatCom and Earth Observation programmes. Fifth, we prioritise operational optimisation and strategic capital allocation, ensuring that we deploy cash effectively to achieve our objectives and deliver long-term, sustainable shareholder value.”
Key financial highlights include revenue of $629m, reflecting a temporary 19% year-on-year decline due to timing shifts in a major programme and a Thuraya-3 service anomaly. Adjusted EBITDA stood at $317m, maintaining stability with a margin increase to 50%. Normalised EBITDA, excluding one-off items, was $282m, marking a 15% decrease but with strengthened margins at 45%. Net profit reached $166m, slightly lower than the previous year due to the introduction of UAE Corporate Tax, though excluding tax, profit increased by 5%.
Space42 ended the period with a strong cash position of $1.1bn, a negative net debt of $505m, and a net leverage ratio of -1.6x. The company also secured over $7bn in contracted future revenues, equivalent to 11 times its full-year revenue, ensuring a solid foundation for continued growth.
