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Ladies and gentlemen, welcome to the SES First Quarter 2026 Results Conference Call. [Operator Instructions] Now I will hand the conference over to Christian Kern, Head of Investor Relations. Please, sir, go ahead.

Thank you, [Gaya]. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES Q1 2026 Results Call on behalf of our management team. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document has been prepared under International Financial Reporting Standards.

As usual, this presentation may contain announcements that constitute forward-looking statements, which are no guarantees for future business performance and involve risks as well as uncertainties. Also, certain results may materially differ from those in these forward-looking statements due to several factors.

We invite you to read the detailed disclaimer on Slide 2 of this presentation. The presentation is also available on our company web page. Today, I'm joined by our CEO, Adel Al-Saleh; and our CFO, Lisa Pataki, who will take you through the presentation, followed by a Q&A session. Adel, without further ado, over to you.

Thank you, Christian. Good morning, everyone. Q1 2026 was a solid start to the financial year for SES. Our performance in the quarter reflects disciplined execution across both networks and media, reinforcing confidence in our strategy and our 2026 financial outlook, which we are reiterating today.

These results are driven by our clear vision to position SES as a leading multi-orbit space solutions company, delivering resilient high-performance connectivity to the world's most demanding customers.

Let's start on Slide #3. Today, I want to begin by briefly reminding you of our vision and strategy for the company. We're building a space solutions company that is an integrated full-service provider, combining multi-orbit networks, our extensive ground capabilities, software and services and supported by an open and inclusive ecosystem of partners to meet the mission-critical customer needs.

The way we deliver on this ambition is by anchoring our strategy on 4 strategic pillars. Pillar #1 is Sustained Financial STRENGTH through focused execution, disciplined capital allocation and strong cash generation with a resilient balance sheet supporting long-term investments.

Pillar #2 is VERTICAL Customer solutions. We want to continue to focus on high-priority verticals, government and defense as the priority vertical, Aviation and Maritime, Fixed Data and Media with solutions tailored to customer missions. We'll focus on the areas where we can provide differentiated value to our customers.

Pillar #3 is Investment in INNOVATION. Through innovation across our operations, we're building a continuously evolving modular network, software-defined satellites, hosted payloads to secure sovereign networks. This positions us well to advance differentiation through performance, scale and resilience. Achieving this vision requires greater ownership of our supply chain. That is why we're transitioning and focusing our efforts on verticalization.

And our fourth pillar, smart diversification, selective expansion into new areas and pockets of growth that reinforce our capabilities with leveraging partnerships and ecosystem models to accelerate growth and reduce risk. Hosted payloads for new missions and hosted payloads for new missions and direct-to-device with Lynk Global are good examples of Smart DIVERSIFICATION.

Moving to Slide #4. The next major steps in our journey, which is meoSphere. As you're aware, meoSphere is our recently announced next-generation MEO network, which will drive a step change in SES's capability, competitiveness and future growth. This next-generation network will be scalable, high performance, adaptable and designed to support multiple missions, meeting dynamic customer needs and expanding them.

Let me highlight some key features of the meoSphere. First of all, Flexible & Modular Space Segment. The design will have a transparent and regenerative payload, enabling real-time dynamic capacity allocation. We'll have flexible multiple payload designs supporting multiple missions on a single satellite.

Optical and RF communication for high-throughput resilience and future interoperability. The satellites will be configurable size, weight and power, also known as SWAP to accommodate additional and evolving missions with true global portable coverage at 8,000 kilometers above earth, which is the near orbit.

High scalability with incremental satellite deployments as customer needs and demand evolve and designed to offer governments sovereign operations and slices of the network. Digital Orchestrated Operations, that means global [ virtualized ] ground network for resilience, efficiency and rapid service provisioning, it will be 5G compatible architecture, enabling seamless integration with terrestrial and nonterrestrial networks.

And of course, advanced service orchestration, enabling dynamic routing, multi-orbit integration and end-to-end service management. And finally, Compact Easy-to-deploy Terminals. We will have small, easy-to-deploy designed for rapid installation and mobility use cases terminals, high-performance form factors.

We'll have a 50x 50 centimeter terminals delivering up to 1 gigabit per second peak forward throughput and ultracompact 25x25 centimeter options for space and weight constrained environments. We will have diverse antenna choices to match mission and platform requirements.

And finally, single user interface and true plug-and-play operations, simplifying deployment and day-to-day operations. meoSphere is targeted for operation by 2030 and designed to significantly boost our MEO network capacity. SES will pair its own software-defined payloads being developed and manufactured in Luxembourg with an initial 28 high-power satellite buses developed by K2 Space, representing the first phase of the meoSphere rollout.

This initiative is included in our previously announced and today reiterated CapEx outlook, we will continue executing our rigorous financial discipline. Together with K2, we are derisking the development of the network by having multiple what we call Pathfinder missions with SES payloads, of which the first has recently been successfully deployed and is now being tested in orbit.

Let us now move to Slide #6 and our Q1 2026 business highlights. As a reminder, we closed the Intelsat acquisition on July 17 last year. These results are shown on a reported basis with Q1 2026 being fully consolidated quarter. The figures are compared year-on-year to Q1 2025 SES stand-alone reported numbers on a constant FX basis. In a few minutes, Lisa will also share like-for-like comparisons. We have delivered Q1 2026 performance according to plan, representing a solid start to 2026.

Q1 2026 revenue was EUR 847 million, up 80% year-on-year, driven by Networks growth of 106% year-on-year. Q1 2026 adjusted EBITDA of EUR 404 million was up 57% year-on-year with a margin of 47.7%. Capital expenditure for Q1 2026 were close to EUR 320 million, with full year 2026 expected to be front-loaded while we continue executing on planned CapEx synergies.

In Q1 2026, we secured EUR 306 million of renewals and new customer contracts, with the majority coming from our growth segments. This has supported our gross backlog of EUR 6.2 billion, which continues to be impacted by a weaker U.S. dollar and intercompany eliminations.

Overall, Q1 2026 delivered a solid start to the financial year, with performance materializing as planned and in line with our expectations. As a combined company, we are executing with discipline while navigating a mixed operating environment. We're delivering on our synergy plans, achieving a reduction of 20% year-on-year in staff costs in Q1, and that is on a like-for-like basis.

Overall, OpEx was down 9% year-on-year. We continue facing some near-term headwinds, most notably in parts of Fixed Data and in Media. In Fixed Data, we took decisions to restructure the business to address competitive dynamics and to position the business on a more sustainable footing.

In Media, we delivered to expectations. Year-on-year decline is still impacted by the Brazilian customer bankruptcy. We expect performance to stabilize in the second half of the year. Multiyear contract renewals in Media, such as the recently announced decade-long contract renewal with ARD in Germany, underpin key customers' commitment to satellite broadcasting and support the strong cash-generative nature of the business. In addition to ARD, we're in the middle of important contract renewals with dates well past 2030. At the same time, our other business units continue to perform well and deliver growth. Networks remains the primary growth engine of the company and continued momentum across mobility where aviation stands out and government, underpinned by strong demand for our differentiated multi-orbit solutions.

Let us now turn to Slide #7 and our Key Customer Renewals and Strategic Wins this quarter. Q1 delivered solid commercial momentum across our verticals. We remain a trusted partner to customers in more than 130 countries, reflected in our strong customer base and continued momentum.

In Media, we continue to secure long-term renewals with leading customers, including ARD, as I just mentioned, as well as International Judo Federation, DISH, Airtel and ESPN with some contracts extending well beyond 2035, supporting the strong cash generative profile of the business and contributing to greater stability as we move into the second half of the year.

Government performance remained strong, led by our global government activity and our involvement in IRIS2 project. The IRIS2 program is in the middle of Rendez-vous 1, nearing completion. We will share more details in due course. During the quarter, we also extended the EGNOS GEO-1 satellite service agreement with the European Union Agency for Space Programs, and it was through 2030, ensuring the continued delivery of high-precision, high reliable navigation services for aviation, maritime and other critical users across Europe.

These wins reinforce SES's in high-priority mission-critical programs and underscore the strength of our differentiated space-based solutions. In aviation, we now have nearly 600 aircraft flying with our multi-orbit ESAT inflight connectivity system, delivering fast, dependable Internet access to millions of passengers every day.

Demand for multi-orbit electronically secured antennas continues to accelerate, highlighted by the new commitments in the quarter, including more than 40 long-haul aircraft from Japan Airlines as well as Saudi Airlines with open orbits. We also reached an important milestone with Boeing towards factory line fit across all aircraft models, scaling our aviation footprint. Our backlog of East installations, we continue to make great progress equipping the aircraft of American Airlines, Air Canada and Avianca, which will underpin future growth and profitability.

Despite ongoing competition, the market continues to accommodate multiple players with clearly differentiated offerings. In Maritime, we remain a leading provider of connectivity at sea, supporting passengers and cruise across a wide range of maritime use cases. Despite ongoing competition pressures, we continue to see long-term renewals in the cruise segment.

In Q1, we secured additional renewals with key customers like MSC Cruises, Carnival and Merino, reflecting confidence in our platforms. In fixed data, we took decisive actions to navigate ongoing market headwinds and reposition the business for the future.

At the same time, in the quarter, we delivered important customer renewals such as Orange, Petrobras, emergency.lu, AMN and many others, reflecting the ongoing value of our services to key enterprise and network customers as we continue to serve 8 of the world's top 10 mobile operators and numerous global energy companies.

Overall, these wins reinforce the strength of our customer relationships and our differentiated multi-orbit value proposition. With this, I now hand over to Lisa, who will go through further details of our Q1 2026 financial performance.

Thanks, Adel. Good morning, everyone. Before turning to our Q1 2026 financial performance, I'd like to highlight that the press release available on our company website includes supplementary financial information with like-for-like revenue per vertical and adjusted EBITDA at the group level as if the Intelsat transaction had consolidated from the 1st of January 2024.

To reflect internal changes, we have updated our vertical reporting structure to better align with our operating model and leadership responsibilities. We continue reporting on our 2 primary businesses, Media and Networks. Within Networks, we now report government, Fixed Data and Mobility with Mobility encompassing both Aviation and Maritime.

To support this change and provide greater transparency, our Q1 2026 press release includes additional supplementary disclosures showing these vertical splits on a like-for-like basis going back to Q1 2024. We hope you find this enhanced disclosure helpful for your modeling of the combined company by vertical.

We appreciate your engagement as always. And as usual, our IR team is available for any questions that you might have on this topic. Let's now turn to Slide 9 for our financial highlights. The first quarter of 2026 marked a solid start to the year with reported revenue of EUR 847 million, resulting in a growth rate of 80.5% year-over-year on a reported basis when compared to the same period last year. On a like-for-like basis, with constant foreign exchange rates, Q1 2026 revenue was up 3.1% compared to Q1 2025. This was primarily driven by growth in Mobility, particularly in aviation as well as in government, partly offset by ongoing headwinds in Fixed Data and Media.

In Mobility, Aviation performed well, supported by demand for our multi-orbit solutions. This business has also benefited from a planned contract restructuring, which enabled us to recover and redeploy capacity to higher demand customers. This improves utilization with continued strong interest in our open orbit offering.

In Fixed Data, we are taking decisive actions to navigate the competitive headwinds that are behind the continued declines. And within Media, the decline was driven by structural headwinds and the impact of the Brazilian customer bankruptcy. Q1 2026 adjusted EBITDA was EUR 404 million, showing growth of 57% year-over-year with margins of 47.7%.

On a like-for-like basis, Q1 2026 adjusted EBITDA was up 5% compared to Q1 2025, driven by the Aviation contract restructuring and lower operating expenses resulting from our integration activities. These gains were partially constrained by the same underlying near-term margin headwinds driven by what we previously discussed.

In our aviation business, we installed over 100 electronically steered antennas in Q1 2026, and there are nearly 600 aircraft now flying with the multi-orbit system. As noted in prior periods, this equipment revenue is initially margin dilutive before transitioning to higher-margin service revenue following installation.

The quarter also included some expected impacts from timing differences between the onboarding and decommissioning of airline customers. In government, we continue to have some timing impacts due to contract rationalization by the U.S. Department of Government Efficiency, otherwise known as DOGE, and some postponements of large contracts, in part due to the U.S. government shutdown in late 2025.

These government impacts are largely timing related with several awards expected to materialize later this year and drive growth in the second half. And finally, we have seen company revenue mix change due to structural pressure in Media and challenging conditions in Fixed Data. We remain focused on stabilizing Media and restructuring Fixed Data through disciplined value-driven capacity allocation. With the expected solid Q1 2026 performance, we are also reaffirming our 2026 financial outlook.

Let's now move to Slide 10 to give a more detailed view of the financial performance of our vertical segments. Media's Q1 2026 revenue of EUR 285 million, now accounting for 34% of total revenues, increased by 42.9% over prior year due to inorganic growth offsetting structural declines.

On a like-for-like basis, Media was down 11%, driven by structural declines of capacity optimization in mature markets and the impact of the Brazilian customer bankruptcy.

Q1 2025 was the final quarter in which the Media business recorded revenue for the Brazilian customer. Despite ongoing structural decline, Media remains a highly cash-generative and profitable business. In Q1 2026, we secured close to $100 million in renewals, including with several key customers extending well beyond the next decade.

I should also highlight a recent announcement after the quarter closed, whereby SES secured an important long-term renewal with the German broadcaster, ARD, with a commitment of service through 2039. These long-term awards reinforce the confidence our customers have in our reliable service and solutions as well as providing SES with strong revenue visibility.

Free-to-air, free-to-view and sports and events continues to be resilient. Satellite remains the most efficient and reliable distribution platform in many remote and underdeserved regions.

Moving now to Slide 11. Our Networks business now comprises over 66% of total revenues. On a reported basis, Networks revenue more than doubled compared to the prior year. On a like-for-like basis, Networks revenue increased by 13% versus the prior year, reflecting the growth momentum of the Aviation and Government segments. Within Networks, the Mobility segment, as mentioned, now comprising Aviation and Maritime, achieved revenues of EUR 259 million, 2.7x higher on a reported basis and up 37.6% on a like-for-like basis year-over-year.

This growth was driven by our aviation vertical and includes the continued adoption of our ESA multi-orbit solution, now with close to 600 tails benefiting from it. We will continue the rollout of ESA installations, which will then generate subsequent service revenues, driving future growth in this competitive market.

As mentioned, aviation performance also benefited from a planned strategic contract restructuring, which accounted for EUR 81 million in Q1 2026, allowing capacity recovery and redeployment from a highly contended North American satellite to higher demand uses.

Our Maritime vertical continues to perform to our expectations with some restructuring happening in the wholesale Maritime business, yet we continue to benefit from important customer renewals and new wins in our cruise and commercial shipping businesses. Our Government segment delivered revenues of EUR 189 million in Q1 2026, up 50.7% year-over-year on a reported basis.

On a like-for-like basis, government grew 8.8% year-over-year, driven by solid performance in global government. This is due to rising demand for secure, resilient connectivity and defense-related applications. This was partially offset in the quarter by budgetary pressures in the U.S. government business, including contract rationalization linked to DOGE initiative in 2025.

We expect this impact to ease with growth anticipated in the second half of the year. The IRIS2 program continues to progress through Rendez-vous 1 with more details to be shared in due course. Geopolitical developments, including the conflict in the Middle East are driving increased demand for secure communications capacity.

With proven multi-orbit capabilities and a strong history serving U.S., European and allied governments, SES is well positioned to capture this potential uplift and support future growth in this vertical as we deploy our next-generation MEO constellation meoSphere.

Lastly, in our fixed data business, revenues in Q1 2026 totaled EUR 109 million. This represented a growth of 79% year-over-year on a reported basis. On a like-for-like basis, revenues declined 16.9%, reflecting ongoing competitive headwinds. In response to this competitive environment, we have taken decisive actions to restructure the business, including a sharp focus on customer and capacity prioritization.

As such, we expect progress as the year unfolds. We continue to see a solid backlog driven by continued demand for our multi-orbit solutions underpinned by $210 million new business and renewals in our Network segment with customers such as the European Union Agency for the Space Program, Japan Airlines, Carnival and Petrobras driving expansion across our verticals.

Turning now to Slide 12 for a detailed view of our capital allocation priorities and our debt maturity profile as of March 31, 2026. Our combined like-for-like adjusted net debt to adjusted EBITDA ratio stands at 4.1x versus 3.9x in the previous quarter, reflecting mainly timing effects of cash flows and debt refinancing and lower 12-month trailing adjusted EBITDA.

This includes cash and cash equivalents of EUR 874 million, excluding EUR 306 million of restricted cash, which is related to the SES-led consortiums involvement in the IRIS2 program. Our debt portfolio remains well structured with a weighted average cost of around 4.2%, approximately 70% of debt at fixed interest rates and an average maturity of roughly 5 years, providing resilience, flexibility and clear visibility into long-term planning.

Our capital allocation priorities remain unchanged with a continued focus on deleveraging and improving credit metrics over time while maintaining sufficient liquidity to meet upcoming obligations. Our balance sheet and access to capital markets provide flexibility as we consider future financing actions. During the period, we actively managed our maturity profile. We now have approximately EUR 750 million due for the rest of the year, having repaid debt principals of around EUR 979 million, including a EUR 650 million senior bond and a EUR 327 million tender offer relating to our EUR 525 million hybrid.

Regarding the remaining EUR 198 million balance on the hybrid notes, we have recently issued a notice of redemption and as such, we will be redeeming the outstanding securities on May 27, 2026. In March, we have successfully raised EUR 650 million with our new SPACE Hybrid offering, which was 5x oversubscribed, demonstrating strong investor demand.

This new EUR 650 million SPACE Hybrid benefits from an innovative structure, achieving 100% Moody's equity credit while sub-investment grade, providing a balanced solution between credit reinforcement and capital efficiency. This instrument allows us to strengthen our balance sheet and leverage reduction targets as well as preserve liquidity headroom and address near-term maturities. In order to be consistent with prior periods, we have considered this instrument as 50% equity credit in our net leverage calculation.

We continue to make progress in our O3b mPOWER insurance's claim, having collected EUR 10 million -- sorry, USD 10 million equal to roughly EUR 9 million this quarter, bringing the total proceeds to USD 202 million to date. We will continue to provide updates as the final settlement negotiations progress.

As we continue to invest in our next-generation MEO capabilities and focused GEO replacement to support our Media and government customers, we remain highly disciplined in capital deployment, ensuring every investment aligns with our strategic priorities.

Q1 2026 capital expenditures totaled EUR 319 million, primarily reflecting some timing shifts related to the O3b mPOWER satellite program. During the quarter, we continued to execute on our CapEx plans with discipline. We continue to rationalize our midterm CapEx plans and have decided to cancel 2 GEO satellites that do not meet our IRR thresholds. As Adel mentioned, we expect CapEx to be front-loaded in 2026. We remain fully aligned with our CapEx outlook for 2026 as we deliver on our CapEx synergies and work towards fleet and ground optimization.

Following a successful Annual General Meeting on April 2, we continue to deliver on shareholder returns and paid a 2025 final dividend of EUR 0.25 per A share and EUR 0.10 per B share on April 16, 2026. As previously stated, once the company meets its net leverage target, at least a majority of future exceptional cash flows of the combined company will be prioritized for shareholder returns.

Overall, our focus this year remains firmly on cash generation, balance sheet strength and disciplined execution with a clear and credible path towards deleveraging and long-term value creation. With that, I'd like to hand it back to Adel for his closing remarks.

Thank you, Lisa. On Slide 14, we are reiterating our financial outlook for 2026. Following a solid first quarter performance in line with our expectations, we expect to see some quarterly variations driven by well-understood dynamics. As the year progresses, we expect government revenues to ramp up as U.S. contract signings effects ease and demand for sovereign connectivity solutions continues to grow.

In Aviation, we expect margin support from conversion of equipment revenue into service revenues. Media declines are expected to improve as the impact from the Brazilian customer bankruptcy washes through. And in Fixed Data, the restructuring is expected to improve performance. With these well-controlled dynamics and execution on track, we're fully committed to delivering our full year outlook of stable revenue and stable adjusted EBITDA.

We continue to fast track our CapEx synergy delivery. 2026 capital expenditures at euro-U.S. dollar exchange rate of 1.20 are still expected to be around EUR 700 million, including IRIS2 and the first phase of meoSphere. O3b mPOWER satellite 9&10 entered service in late February, providing much needed capacity. The launch of Satellites 11, 12 and 13 continue to be on track for the second half of 2026.

We're very pleased with the progress of Pathfinder 1 mission. Our meoSphere agile development is enabling us to identify and address design issues early on. Overall, the mission is performing well, and we're excited to see it continue and deliver on its objectives.

On the C-band, there are no material updates since our reply comments to the FCC's notice of proposed rulemaking, which was in February. We remain fully engaged with the FCC and continue to expect an FCC ruling in the second half of 2026. We'll keep you updated as the process progresses.

I would like to conclude today's presentation on Slide #15. Our 2026 priorities remain clear and focused. We're focused on customer needs through our vertical solutions, our flawless integration, sustained financial strength and relentless operational execution with synergy delivery.

We're scaling differentiated multi-orbit network solutions, growing through customer-driven innovation and building a best-in-class team grounded in responsible business practices. Together, these priorities position SES to deliver sustainable growth and attractive total shareholder returns. With this, we're now ready to answer your questions.

[Operator Instructions] We have the first question coming from Alexander Peterc from Bernstein.

So I just have 2. The first one is on the nature and the mechanics of the aviation EUR 81 million in the first quarter as it's quite sizable, close to 10% of your revenue in the quarter. I'd just like to understand to what extent this was a one-off Q1 event? And as I understand it, it wasn't previously flagged, but correct me if I'm wrong. So I just wanted to know to what extent this was baked into market expectations.

And then the second question I would have is on your strong progress on OpEx reduction, down 9% like-for-like year-on-year, which was stronger than I expected. I'd just like to understand if this is entirely synergy driven and how we should think about the trajectory of your OpEx reductions in the remainder of the year?

All right. Great. Thanks, Alex, for the question. So I'll start and then hand it over to Adel. So first of all, on the aviation contract restructuring, you did hit it. This was planned in our guidance that we had given when we gave the full year results back in March. So really no surprises in terms of how we thought through the year in terms of planning. This is actually quite a favorable contract restructure for us. We did not have to do it.

But the reality is that this unlocked capacity on one of our most valuable satellites that we're able to redeploy to other customers. So it's quite a good deal for us. We're very happy to have gotten that over the line. And just the way the revenue recognition works, we did need to take that upfront in Q1, but it's a good overall deal for us. And again, it was included in the guidance.

In terms of your question on the OpEx reduction of 9%, we're obviously quite pleased with how we've been progressing in terms of the integration and the synergies. We've discussed a lot on previous calls that we've taken the integration quite seriously. We have accelerated as much in terms of headcount reductions and reduction of consulting costs and acceleration of our IT systems and environments as much as we possibly could, knowing that the mix of the business really does impact our overall EBITDA, hence, why we've kept our guidance at stable, stable year-over-year. So it is quite important to us that we're actively working through the synergies, and we're quite happy with our progress thus far.

The next question is coming from Nick Dempsey from Barclays.

I've got 2. So first of all, just coming back to that EUR 81 million benefit in Q1. So am I right in thinking that, that would naturally have landed in your revenues in Q2, Q3 and Q4, the EUR 81 million, but it's all landed in Q1, but you've freed up some capacity. So by reselling some of that capacity, you might be able to mitigate some of the EUR 81 million of year-on-year headwind that lands in Q2, Q3 and Q4. Am I thinking about that right?

And my second question, just regarding your plans to cancel a couple of satellite projects, which will clearly help your CapEx. Does that have a negative impact on your expected revenue growth over the coming years compared to what you were thinking before?

Yes. So on the EUR 81 million, so we will continue to have revenue streams throughout the year. In fact, we'll end up allocating more of that locked up capacity to other customers. So it's overall a good thing for us. If we would not have canceled the contract, it would have gone longer than just this year. So that EUR 81 million would have been spread over several years.

But this actually gives us more optionality to repurpose that satellite capacity on our open orbit solution. So we're actually quite happy with how that played out. And again, just to reiterate, this was planned in the guidance this way. On the cancellations for the satellites, just to reiterate, we have 2 synergy kind of workflows. One is cost reduction from operating expenses and the second one is on CapEx. And we've spoken about the need to rationalize the fleet of GEO satellites, both from the ground and the spacecraft in the sky. So we've taken some pretty hard decisions on which satellites we need in our fleet, which satellites can use life extension vehicles and therefore, which satellites we no longer need to procure.

And so that was baked into our CapEx guidance when we gave the guidance at the full year. We just needed to really work through which satellites we're talking about and how we were really going to optimize that.

The next question is coming from Roshan Ranjit from Deutsche Bank.

I've got 2 as well, please. And perhaps just following up on the contract restructuring. And again, please correct me if I'm wrong. If my math is correct, if I take out the EUR 81 million from the aviation revenue stream, that would then suggest year-on-year growth down 5% on a like-for-like basis in Aviation. Firstly, is that correct?

And secondly, why is the reason for that given the kind of ESA installs that we've had? And maybe tied to that, the customer that is returning the capacity, are they looking at alternative constellations? Or is it just that they are not in that business anymore?

And secondly, Adel, I think you recently met with the FCC Chair given the comments around kind of U.S. and European satellite capacity and infrastructure. Anything you can share about those discussions and how that fits in with the, I guess, EU draft commentary around European capacity?

Yes, sure. So again, on the contract restructuring, keep in mind that we have contract restructurings that occur as normal business practices. So if you look at the first quarter of 2025, we did also have contract restructurings in the Maritime business. So if you look at mobility overall and you remove those 2 items, Mobility would have been up about 4% year-over-year. But you are right. If you strip out the EUR 81 million and you just look at that, you would be down 5% year-over-year on the revenue.

But again, we had planned it this way. On the ESA installs, quarter-over-quarter, so Q1 '25 to Q1 '26, we actually did more ESA installs than we had last year. And I think if you recall, we really started to ramp up ESA installations in the second half of 2025. Those installations are very margin dilutive.

So as we install those, it is a hit to our margins. And then when those airlines go online, we're starting to see good results from the service revenue. So that's a good thing.

And then just your last point on why did the customer want to relieve the capacity on the satellite that resulted in the restructuring. They are just interested in a different business line. This isn't a direct-to-airline type of arrangement that was restructured. So it was just simply a third party that wanted to get out of that particular business. They had capacity that was allocated solely to them, and now we're able to use that capacity for multiple customers.

Yes. Lisa, just -- I mean, you've handled the EUR 81 million now multiple times and multiple questions. Emphasizing the last point that Lisa made. This is not an end customer airline. This was a reseller, right, or an integrator, if you will, that no longer wants to be in that business or at least they're restructuring their focus and looking at different ways.

So it was an opportunity for us to take capacity back and redeploy it. And Roshan, it's not as simple as removing EUR 81 million from the quarter. It's quite complicated because there was a commitment to continue to drive that revenue from that contract in the quarter. We're able already to deploy some of that capacity to other customers, et cetera. So we -- as Lisa said, we see it as a very, very good deal for us. We wanted to get back a lot of that capacity because it's a very well high throughput satellite position on top of North America, and it will drive additional growth for us going forward. So it was a good deal for us.

Look, on the FCC meeting, I mean, we've disclosed what the meeting was all about. And the discussion with the FCC continues to be very constructive on multiple fronts. Clearly, the C-band cooperation that we have with FCC to enable them to execute what they would like to execute continues to progress.

Like I said, there's not much more to disclose. We're expecting the ruling to come in, in the second half of the year, which is very imminent here now coming up, which is good news for us. And by the way, we have now demonstrated, and I hope many of you have seen this, a very credible solution for our Media customers as we transition C-band [down], right, to move them to a Ku plus solution.

And if you have not seen that, by the way, I would encourage you to look at some of the public posts that we've done through the NAB -- from the NAB show as well as on our websites and some of the publicly available information on what that solution looks like, including in our SEC filings.

So we are very excited about that. Excited about C-band, excited about having a solution for our clients. And many of our large customers in North America are supporting our solution, the way we go forward. So that's the FCC. Now regarding the different regulatory frameworks, look, SES is uniquely positioned, right, because we have big presence on both sides of the Atlantic.

We work very closely with the Commission on -- European Commission on their future regulatory frameworks. And we're a good example of a company that works in both North American and the European theater like to have rules and regulations that enable our growth. So we lobby both sides of the Atlantic to make sure that whatever new rulings or new acts are being put in place that they're keeping in mind the global nature of our business. And we have a lot of ears listening to us and taking our advice and shaping the laws as they go forward. I hope that answers your question.

The next question is coming from Ben Rickett from New Street Research.

I had 2 questions, please. So the first one on government revenues, that was quite strong in Q1, up 9%. Are you able to quantify how much of that was IRIS2 revenue? Then sort of a related question, you said that you expect to see new U.S. government contracts coming in H2. Is there a risk though that those contracts don't materialize? And do you think you'll still be able to hit the guidance if they don't materialize?

And then my second question was on Lynk and OmniSpace. Given the interest in direct-to-device, I just wondered if you could talk a little bit about what your relationship is with those companies and the combined company, what your shareholding is? And also would you be prepared to commit additional capital to the company to fund their constellation?

Sure. All right. So on the government side, we do have revenue in the first quarter for IRIS. It's just shy of about EUR 40 million. And that's taking us. We're still going through the Rendez-vous 1. On the U.S. government side, so we have -- you can probably all tell that the second half is back-end loaded in terms of revenue.

And some of that is due to the government, in particular, in the U.S., where we have 2 contract awards that we expect to conclude in the second half. So that's all baked into the guidance.

Yes. Just to add to that, Lisa. Look, in our business, you got to win contracts, right? So it's not that we're suddenly reliant on a particular contract to happen. We have a multiple -- a pipeline of very attractive deals. We're hoping to win all of them, but we're not counting on winning all of them, right? So if you look at our forecast, it's a balanced forecast with puts and takes, and we're very confident in what we have committed to the marketplace in terms of stable, stable.

And as I said and Lisa highlighted, we'll have a little bit of variation quarter-to-quarter, right to explain that some of these variations are because of the nature of these contracts as they either wind down or come on board, translation of equipment revenue to service revenue where the revenue will come down, but the margin will increase as a result.

So all these dynamics have put in our forecast, right? And as we look at it. And first quarter is a tick mark. Now we got to close the second quarter, and we've got to go to the second half when we are done with the second quarter. So that is how we see it and how we will execute according to that.

Now in terms of -- then your specific question, what happens if they don't materialize? As I said, we have enough in the pipeline to have a trade-off of things that happen, things that get delayed and things that potentially could come in earlier, right? And we believe we're very balanced in the way we're forecasting.

Like in terms of your question on Lynk and Omnispace, I mean that is -- that's part of our diversification strategy. It's a very exciting partnership. The partnership is quite extensive, right? So we have invested in the company. I don't remember, Lisa, if we disclosed it, so I'm not going to disclose it on this call.

Included in the CapEx outlook.

It's all included in our CapEx outlook in the past, what we spent and in the future. But the other -- but the relationship beyond that, right? We really like their technologies because their technology can go to the website and look at it. It's quite unique in the way they approach direct-to-device and their patent portfolio is quite interesting because they were the founding fathers, if you will, of the direct-to-device activities.

We also see a multi-orbit combination of a LEO constellation like this one direct-to-device with NEO as a backbone to support that infrastructure and support that constellation. We've already made proof of concepts and demonstrated it where we initiate a voice call to a direct-to-device Lynk satellite connected to NEO and deliver the signal somewhere else in the world very, very quickly.

And basically, what that allows Lynk to do is not to invest as much capital they need to in the ground infrastructure where they will be using our ground infrastructure right in order to deploy their services. In addition to that, we help them in running their satellites and maneuvering their satellites due to the extensive capability we have in TT&C.

And then finally, spectrum. Both companies Lynk and Omnispace and SES have very valuable spectrum around the world. And I'm not going to get into the details what that is, but we are looking at how we can help them leverage the spectrum that we have in order to create better services for this kind of service. So a very exciting opportunity for us, and we're looking forward to building it up and progressing.

And you're not able to say what your ownership stake would be in the combined business?

I don't think that's disclosable, right? So it's not significant for all. When Lynk and Omnispace do combine, they're in the verge of getting their final regulatory approvals. It's up to them to disclose who their shareholders are and what the position is.

The next question is coming from Paul Sidney from Berenberg.

I have 2 as well. Apologies going back to the revenue question. But if we look over 2026, I appreciate that the quarterly phasing is very complex. You've got the contract restructuring, capacity redeployment potentially. But with Media stabilizing in the second half, the momentum you have in government aviation installs coming online, are you more confident now than you were 3 months ago on that top line performance?

And second question, just around IRIS2. You've been working on the project for some time now. I guess about the confidence. How much more confident are you in the success and capability of the project now compared to when you first agreed to be part of the process? And any update on any other countries joining the project and when we can expect through one?

I'll start and then Lisa, please help me when you think it's appropriate. So look, on the revenue, we were very confident as we started the year. We've done a lot of work on the visibility. And you got to keep in mind that we have a very unique or good business model where we had visibility to our revenue up to 80% of the year when we start the year, because of the long-term nature of the contracts that we have, right?

And some of our businesses have more like 60% visibility, like Fixed Data, where they have to win a lot more in the quarter, but other businesses have greater than 80% visibility like our Media business, right? So we have the balance of the portfolio that gives us visibility.

But clearly, delivering a good Q1 gives us more confidence, right, of course. But I have to emphasize that we were quite confident when we gave the guidance, and we -- it's 4 quarters, and we delivered the first one, and we're going to deliver a quarter at a time. So confidence is good. We never take anything for granted, though, right? You got to keep driving and keep closing these deals in the aerospace.

Look, our deals are also not about just the year, right? A lot of our deals that we're talking about secure our business in the future years, 2027, '28, '29. That's why we're very focused on it. So yes, I mean, that's -- Paul, that's kind of my view. Look, regarding IRIS2 and our confidence and what's happening there, look, there is an unwavering commitment from the European Union, European Commission to make IRIS2 a reality.

And it is a sophisticated, complicated project with multi-orbit capabilities and things that we need to invent and evolve. And that's why Rendez-vous 1 needs to take its course. We believe Rendez-vous 1 will be completed in the next weeks, if not maybe a month or 1.5 months.

That's up to the European Commission to decide when they decide when Rendez-vous 1 is complete. But we're making good progress. And as I said always, the only way we can participate in IRIS2 if it makes sense to us financially for us and for our shareholders. And we have our clear red lines defined.

We know what we need to do. And if we meet them, then it's going to be successful. And if we don't meet them, then we need to make a hard decision as a company. But the project is a great project with a lot of support and a lot of commitment from all of the stakeholders in there. So that's where we are, Paul now.

And just any other countries looking to join the project or joined recently that we may have missed?

Well, you've got -- I mean, you've got all of the European Union members that are automatically part of it because of this capacity.

Yes, I was probably thinking more about the U.K. -- U.K.

Yes, I mean there's active discussions between European Commission and allied nations, and they'll be announcing them in due course. But there is big interest in this project on a global basis.

The next question is coming from Geoffrey d'Halluin from BNP Paribas.

I will have 2 questions, please. The first one is related to the questions on the OpEx savings. I guess you are aiming to save EUR 210 million of savings on annual run rate. I just wanted to know how much did you deliver so far at end of Q1 if you can share that number with us? And the second question is related to FX. Would you mind to remind us how much is the sensitivity to the business on U.S. dollars, euro rate? So that means EUR 0.01 of moves, how much is it in terms of revenues and in terms of EBITDA would be helpful, please.

Yes, sure. So on the FX sensitivity, let's just baseline for 2025 full year results, the average exchange rate was about EUR 1.12. For Q1, the average was EUR 1.18. So you can find in the slides in the appendix, we've kind of broken out what the exchange rate impacts were.

So it's in there for revenue and adjusted EBITDA. sorry, and then OpEx savings. So yes, EUR 210 million on the annual run rate savings. So we're obviously progressing ahead of schedule. We said that we'd be able to complete that within 3 years. We are progressing way ahead of schedule on that. We haven't disclosed the actual numbers, but obviously, you can see in a 9% overall reduction that we're progressing quite well there.

The next question is coming from Nick Dempsey from Barclays.

Sorry to jump back in with another one, but just something you said before about IRIS2's contribution in the first quarter of EUR 40 million. So first of all, is that the only contribution you expect from IRIS2 this year, but it's all landed in Q1? Or should we expect more through the other quarters?

And secondly, was there -- if there was nothing from IRIS2 in government in Q1 '25, the ex-IRIS2 number is down quite a lot even when I capture FX. What's driving that exactly?

Yes. So really on the government side, what's driving a decline right now it's on the U.S. government. So if you look at Q1 '25, you did not have the actions in the department those effects. They weren't in '25. Those didn't happen until late Q2, kind of Q3 time frame. So Q1 '25 from a U.S. government perspective was actually quite robust. So that is where the decline is in terms of the government.

Our global government business in contrast is actually performing quite well, double digits. The other thing, I think, to keep in mind, too, is that the U.S. budgets for the addressable market that we serve are quite good. So we continue kind of as Adel mentioned, as we start bidding on these programs or have even bid on these programs, the style of the programs are different.

But there is ample budget in the U.S. that we're looking to tap into in the second half. So really, the U.S. government is kind of driving the decline in government if you strip out IRIS.

Yes. As Lisa was saying, it's contract timings, right, that we're seeing right now, Nick, right? And the double-digit global government growth is without IRIS2, to be clear. Now we're not going to disclose what our assumptions are for IRIS2 for the rest of the year, but the project has different scenarios, right, scenario with continuation, scenario without continuation after Rendez-vous 1, and we kind of build the most likelihood case in our forecast, which we will not disclose at this point in time.

So there's no -- you can't say if there's nothing else expected for the year or something else expected for the year...

Look, the way we planned it out is that we will be working on the IRIS program. So that's the way that it has been based. Obviously, we're in the Rendez-vous 1right now. And as Adel was mentioning, there are several outcomes in terms of how we progress on it. We don't have the answers on that yet.

I think it's important to highlight as well that the nature of IRIS2 as it exits Rendez-vous 1 will be different than prior to Rendez-vous 1, right? Because post Rendez-vous 1, you're going to be executing a contract agreement that you signed with the commission. Prior to Rendez-vous 1, we're working on the preparations and the execution of everything that's leading to the final agreement with the commission.

That's why it's a little tricky to disclose everything and tell you what it looks like. But as Lisa said, right, we're assuming the things we'll continue to do in IRIS2.

There are no more questions at this time. So I hand the conference back to Christian Kern for any closing remarks.

Thank you, Gaya. Thank you participants for your good set of questions. We hope we have addressed all those comprehensively. And if there are any follow-ups, please come through on the usual channels to the IR team. We are more than happy to help. And again, thank you for being part of the call today, and have a good day. Take care.

Thank you, everybody.

Goodbye.

Thanks for participating in today's call. You may now disconnect.

Ladies and gentlemen, good morning, and welcome to the SES Full Year 2025 Results Conference Call. [Operator Instructions]

I will now hand the conference over to Christian Kern, Head of Investor Relations. Please go ahead.

Thank you, Gaya. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES Full Year 2025 results call on behalf of our management team. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document have been prepared under International Financial Reporting Standards. As usual, this presentation may contain announcements that constitute forward-looking statements, which are no guarantees for future business performance and involves risks as well as uncertainties. Also, certain results may materially differ from those in these forward-looking statements due to several factors. We invite you to read the detailed disclaimer on Page 2 of this presentation. The presentation is also available on our company web page.

Today, I'm joined by our CEO, Adel Al-Saleh; and our CFO, Lisa Pataki who will take you through the presentation, followed by a Q&A session. Adel, without further ado, over to you.

Great. Good morning, Christian. Good morning, everybody. Thank you. Good morning. Good afternoon. Thank you for joining us. Look, I'm going to start our presentation before we get into the results for a little bit of an overview of the direction of travel of our network. You probably heard us talk about our next-generation MEO in different events, and I thought it would be probably important to talk to you as analysts, investors, colleagues on this call to repeat the message and maybe clarify the direction of travel that we have as a company.

So if we go to Slide #3, especially given the latest events over the weekend, I want to emphasize that our largest vertical or market opportunity is the defense sector. And what we've seen over the last several decades, a dramatic shift in the defense and how defense users set communications to enhance their capabilities. So if you rewind back between 2010, really the function of SATCOM was basically strategic long-haul pipes. So important communication links between the command center and the theaters of operation.

During that period, the dominated technology was GEO, right, with very large terminals with limited bandwidth and early steps into communication on the move. If you fast forward into 2010 and 2025, space evolved into a contested theater as adversary begin to build counterspace capabilities. So militaries had to adopt a different approach. Specifically, they started thinking about hybrid architectures, combining commercial military capabilities that are looking at different for bids, looking at different throughput. But from predominantly the networks remain silo.

So the LEO network would be siloed from the MEO, from the GEO from the different application and so on. But that began to evolve very, very quickly, especially in the last 3, 4 years.

Now if you look at 2026 going forward, it is now very clear. That space is a war-fighting domain. It is no longer a contested domain. It is a war-fighting domain, requiring superiority across all orbits. This domain is now looked at the same as they look at air, Navy's, cybersecurity, et cetera, et cetera. So the applications using states have become to evolve dramatically.

So if you look at the complexity of what is being done today, it's dramatically different than the past. I'll give you a couple of jobs. So in the past, being able to capture images across earth and deliver them to the right hands to be able to make decisions is changing into continuous observation of earth, real-time image processing on this fleet to be able to issue comments. Missile Defense Systems missile tracking like Golden dumbs and European space defense agencies that is absolutely now a requirement, and not just predicting the launch of the missile, but actually being able to acquire that launch from the beginning all the way of strike in a persistent way. And then sharing that information across multiple domains within the defense and the arms.

And the third -- last example I'll give you is this control center -- the command centers are becoming extremely complicated, extremely diverse connecting many different aspects of data from space from the ground to be able to compile it and be able to deliver the right level of intelligence to the folks that are in theaters. These kind of command complications require an integrated network. It requires more sophisticated capabilities in order to deal with it going forward.

So if you go to the next slide, that dynamics that I just described is really shaping our direction of travel as a company. And although the slide is a little bit complicated, we're hoping to do it in a build slide, I'm going to try to explain it too. So the first layer of states continues to be this proliferated LEO capabilities, right? And that will continue to grow. SES is not in proliferate LEO domain. We use partners to access LEOs when we need it in order to provide services to our clients. We will have our own micro LEO capabilities like quantum key distribution when we launch that constellation, but we predominantly use that as a partner network.

If you look to the next layer with the light green layer, that's our MEO layer. And you got to keep in mind that MEO although pictorial looks like it's between GEO and LEO -- it's actually very close to LEO. It's much further away from GEO that it is from LEO, which gives it that unique capability to cover earth with less satellites, but also have an attractive latency period, which is about 130, 150 millisecond.

Our focus as a company is to continue to build that backbone of the network. And I'll come back to that in a second. And if you think about GEO, our focus in GEO will be on very specific applications where GEO continues to be the superior medium to be able to transfer data or connect people like meet the distribution of very specific governmental applications. So why do we like MEO, MEO is the backbone for us of this network. The future is going to be connecting all these networks to optical links. That's what we develop. So we'll be able to talk to LEOs, we'll be able to talk to GEOs. We'll be able to take talk to earth. We'll be able to talk between our constellations, but also connect to other constellation to move data.

It provides a high-speed backbone capability and a very attractive, resilient layer to the network that without it could be weakened. So this mesh network combined with our ground infrastructure, which is one of the largest ground infrastructures in the world gives us that an edge and a differentiating capability to provide that multi-orbit service to our customers.

So if you go to the next page, now I want to talk about what are the design principles as we evolve this meoSphere network. So first of all, when we think about MEO and the new name of the network will be meoSphere, we think big, we don't think small. We think big satellites, we think satellites that could do multiple things. We want more power on these satellites in order to accomplish some of the things that I'll talk about in a second.

We also believe it's very critical, we take control over some of the supply chains that are critical for innovation and control of our destiny. So therefore, we will be doing more vertical integration as a company, creating this new layer of resilience and new layer of a backbone in space. This network will be ideal to be able to connect to the different networks to create that backbone that I keep talking about, which just opens up multiple partnerships that we have today to enhance this partnership further, but actually new partnerships for people who want to enhance their networks to drive these capabilities. It enables multi-orbit resilience for sure, right? We will be able to move signals from one layer of the network to the next layer between satellites in order to make sure we avoid jamming and we avoid direct attacks, which is happening, ladies and gentlemen.

It also is ideal for the critical -- for the mission-critical applications, because the next level of satellites are going to have a combination of commercial and military capabilities requiring security to be built in beyond what we currently have. Mixing the military capabilities that we currently have in our military satellites with the commercial capabilities to give us that ability to drive these important missions. And the last point is really important. With the size of the satellite, with the flexibility of the settlement, we will be able to do multi-mission capabilities. The platform will always have the capability of having a communication as the foundation of the capability. But actually, there's the additional missions, the additional capabilities that the satellite will provide is a growth opportunity for us.

So what are these missions? So if we go to Slide #6. These are some examples of missions that we can host on our satellites on our meoSphere capability. Number one data, space data relay. This is something you remember, we talked about demonstrating when we did a project with NASA and Planet Labs using RF at that point in time with not optical lines to be able to move data from Planet Labs earth observation satellites to meoSphere -- to the MEO layer and then delivering it to our customers wherever they want to deliver real time, which reduced the time of getting the signal to the right people and demonstrating that we can actually move those very, very quickly in real time.

The next generation of our meoSphere will have these optical links within the satellites. The other potential hosted missions will be missile warning and missile tracking. I described that. Being able to build sensors on these satellites to capture capabilities to capture things that are happening on earth.

The third area, an example is being able to slice the network to provide governments a sovereign network slice of the overall network, giving them control and giving them the sovereignty that they're looking for. Of course, military communication channels and all that, like expand, KA military bands, UHF, that's something we'll be able to do in these satellites as well, space situational awareness, again, not just tracking an object, but being able to connect the intelligence across space and deliver it with AI to decision-making systems to be able to track everything that's happening around us in space, and combine that with our partners. Imagine the ability to combine our space situational awareness data with, for example, Starlink situational awareness, which they announced creates an incredible intelligence available for space.

And of course, the last one is the P&T capabilities that will require over to have more accurate positions within space and within the earth. So these are some important government missions that we will host on ourselves, and we see incredible demand for these capabilities. Our government customers are excited about this next generation of MEOs that we will be launching very, very soon.

So if you go to the next page, obviously, we're working on getting this project off the ground, and we're thinking about it in a very different way compared to the traditional way of a waterfall development of creating requirements and then waiting for 5 to 7 years to be able to launch the constellation. We're going to do it in a different way.

So first of all, this is going to be an iterative phased approach as we build up this capability. We're not going to do everything in one go. That's number one. Number 2 is we're going to use space to actually test the capabilities as they evolve. So instead of waiting and just testing in the labs and on the ground, we'll be launching missions to start testing portions of our design as it becomes available. And I'm happy to deliver, I think we announced it earlier that our first test flight is going to be Pathfinder 1 at the end of March 2026 to the next couple of weeks, launching our bus as well as some of the payload capabilities already to be able to test it. And we have that scheduled every year until we get to a point where we're comfortable with the production of the final systems.

It is also going to be a very disciplined milestone-based investment approach, both based on demand we're getting from our customers as well as the investment will continue to be putting and building up and scaling the capability. And all of this is going to be done with a very disciplined approach based on data, and our customers' reactions. We're going to be leveraging new space capabilities and our deep experience to drive innovation. SES is well known with many first in the industry, many innovations that we have driven, combining that with new space capability, their agility, their speed and their ways of development is going to be very, very helpful as we go forward.

And of course, this investment that we're going to be deploying is contained in our CapEx guidance. We see meoSphere as an important evolution of the company, and we see IRIS2 being the first phase of meoSphere. And we'll talk a little bit more about IRIS2 a little bit later in the debt.

So let me just end this section by going to Slide #8. So what we're doing, obviously, is we're sticking to our strategic focus of multi-orbit capability. By building this next-generation MEO in a very different way than what we've done in the past, partnering with new space capabilities and leveraging the experience we have across the world. We're taking control of the supply chain, to make sure that we capture our IP and our strategic advantage and keep it within the company. And with this approach, we're driving towards our north star, which is building and evolving the company to advanced space solutions company with defense being a very important vertical within that solution capabilities.

We drive solutions beyond communications, while communication continues to be a very important component of the overall portfolio. And of course, controlling supply chain and customer relationships is a very important point that we need to keep driving. So that's what I wanted to share with you before we get into actually our financials and what we're doing.

And now let's get into the financials. Let's go to Page 10. So on this slide, we summarize our full year 2025 business highlights and financial performance. With the closure of the Intelsat transaction on July 17 last year, these full year 2025 results are shown on a reported basis, with Intelsat contributing roughly 22 weeks to the combined company. On the reported basis, we delivered 2025 financial performance within our financial targets with lower-than-guided capital expenditures.

2025 revenue of about EUR 2.6 billion was up 34% year-on-year, with growth in all verticals. 2025 adjusted EBITDA, of course, of EUR 1.2 billion was up 19% growth year-on-year with a margin of 45.4%. Capital expenditure of around EUR 560 million were lower than guided, demonstrating faster-than-planned execution of our CapEx synergies. We generated EUR 229 million of adjusted free cash flow, another year of positive cash generation.

Over the last 12 months, we have secured EUR 1.8 billion of renewals and a new contract -- new customer contracts, with the majority coming from our growth segments. This has supported our gross backlog of EUR 6.6 billion which has been impacted by the weaker U.S. dollar and intercompany eliminations. 2025 is a milestone year for SES, with major progress and a step change in SES's scale, having combined 2 major companies with multiple platforms. We've been working on various scope changes, intercompany eliminations and some different accounting conventions. So this has been a rather complex reporting year.

With the financial performance in the second half of 2025, below our initial expectations for the first year of the combined company, we're facing these challenges head on and are building a stable foundation for future growth. In terms of like-for-like financial trends, revenue was down 1.6% year-on-year and adjusted EBITDA declined around 12% year-on-year. These like-for-like trends are due to key business factors that are unchanged from what we've previously discussed. Lisa will cover those in more detail.

Let's go to Page 11. Across our businesses, we integrated operations, continue to innovate and supported customers at scale as one SES. We are a trusted partner to customers worldwide in over 130 countries as evidenced by our strong customer base and notable wins in 2025.

Starting with our media business, now operating at greater scale following the Intelsat acquisition. We serve more than 2 billion people around the world and nearly 700 million households with a strong cash generation profile. We're securing long-term renewals well into the next decade. And despite industry headwinds, our strategy is clear: defend and optimize high-value neighborhoods by leveraging our industry-leading reach, while expanding in market growth segments like sports and events.

In 2025, we signed close to EUR 450 million in renewals and new business, including a multiyear agreement with Sky, RTL, ORF, Telecom Serbia, Warner Bros Discovery, Dish Mexico, Arqiva, PGA Tour and QVC. We're winning new businesses by leveraging our combined satellite and ground network, including a major new media customer in North America. We launched our new free-to-air free to new offerings in Mexico and Spain, opening new markets with our compelling channel offerings.

Let's now shift to our government business. We continue to see strong and growing demand for our resilient secure communication solutions from government customers around the world. We built a government solutions business of scale on both sides of the Atlantic, being a true space partner to over 60 government organizations, including European and U.S. agencies. We're well positioned to tackle the sovereign capabilities with governments now demand with multi-orbit networks. I just described it a few slides ago.

With space and defense budget increasing both in the U.S. and among NATO allies, we view the government vertical as one of the strongest growth levers over the next few years. For example, the IRIS2 program continues to progress well through [indiscernible], reinforcing SES as the European Commission's trusted partner for its flagship sovereign connectivity network.

IRIS2 will become Europe's multi-orbit network of choice and supports the future expansion of our differentiated multi-orbit architecture, enabling profitable growth from 2030 onwards. Another important milestone was the announcement that SES and Luxembourg government will develop and launch GovSat-2, the second satellite under the Lux GovSat public private partnership. We also extended a long-term posted payroll contract with Australian Defense Force. The French Neighbors aircraft carrier, Charles de Gaulle utilized SES O3b mPOWER services during that CLEMENCEAU 25 mission.

In the U.S., we secured important new contracts, including being selected as 1 of 5 companies on the U.S. Space Force's $4 billion protect tactical SATCOM global PTSD IDIQ contract and a strategic award from the defense innovation unit for secure integrated multi-orbit networking. These strategic wins highlight our commitment to innovation and growth in the government sector.

Turning to Aviation. Millions of passengers rely on SES multi-orbit multi-band connectivity that delivers reliable, consistent performance in the air and on the ground. We're winning new airline customers around the world who are choosing SES because of our clear differentiators. These include our electronically steered antenna solution we call ESA which uniquely enables access to GEO and LEO orbit delivering broad coverage, low latency on unmatched resilience. We also offer multiband flexibility across both Ku and Ka bands, and solution tailored for both narrow-body and wide-body aircraft.

Our flexible commercial models further strengthen our value proposition. In 2025, our aviation business was supported by important customer wins and ramp-up in equipment installations. 16 airlines have committed to our multi-orbit ESA solution on more than 1,000 aircraft with many awards secured in recent months, including American Airlines, Air Canada, Avianca, Jal, Skymark, Royal Brunei and others. While competitive pressure from legal providers remains, the market continues to support multi-providers with differentiated offerings.

Shifting to maritime. We are the leading provider of connectivity at sea, keeping passengers in cruise connected, informed and competitive and fast-moving world. We're confident in our maritime platform, which position us well despite facing pressures for some partners moving to LEO solutions. Our strategy is focus, defend and rationalized supported by selected investments. Our direct maritime business remains strong and resilient despite mega LEO's entry into the market. We secured renewals with multiple major cruise lines and continue to serve 5 of the 6 global leaders.

In 2025, we supported the largest cruise fleet transition from GEO to SES cruise empower and continue to see strong demand for example, from MSC Virgin and other major cruise lines. Our Flex maritime platform performs well and connects over 13,000 vessels across the world.

Finally, our fixed data business. Fixed data saw intense competition in 2025. We have taken several actions to transform the business and focus on areas where we have market-leading offerings and the right to win. Our fixed data business serves 8 of the world's top 10 mobile operators and numerous global energy companies. We expanded digital inclusion in Brazil with Telebras and made meaningful progress in Africa, expanding 200 Africa mobile network sites reaching 500,000 people.

We won additional business with Orange across multiple countries and closed our first SES Intelsat combined fixed data deal in chat. In recognition of our impact in Africa, we're honored with a changing lives award at Africa Texas for connecting schools in South Sudan and Uganda. As you can see, we're creating a stronger, more agile, more competitive SES, one built to lead across orbits, markets and technologies.

Let's go to Slide #12. This slide highlights our fast-track synergy progress and integration efforts. We began delivering synergies from day 1. The integration of the 2 businesses is well on track. The organization design and structure is complete. Leadership is in place on all levels of the company, and the new operating model across the combined business is established, enabling faster decisions and clear accountability as one company. Leveraging these operational changes, we're progressing well with fast tracking our initial synergy plan.

On OpEx, we're crystallizing synergies more rapidly and are taking well to -- and tracking well towards the EUR 210 million annual run rate target. Both labor and nonlabor savings are already flowing through, with contracts rationalized, office footprints consolidated, automation scale, procurement efficiencies captured and IT consolidation progressing to plan, always delivering these efficiencies with utmost care and transparency to support our teams as we align on the needs of our scaled business operations.

On CapEx, we're also fast-tracking the annual synergy run rate of EUR 160 million. We're confident to achieve this target sooner than initially planned. To focus on our growth priorities smarter asset use, nonreplacement of certain satellites as well as rationalizing of networks and ground infrastructure. Already in 2025, we're able to save around EUR 100 million in CapEx versus the midpoint of our guidance.

Our labor costs were down 7% on a like-for-like basis in 2025, accelerating the decline in fourth quarter. As you can see, we're executing with discipline and precision on our synergy targets. This positions us well to unlock the full value of one SES.

With this, I'll hand over to Lisa, who will share with you more details of our 2025 financial performance.

All right. Thank you, Adel. Good morning, everyone. Before I begin my remarks on the financial performance of the combined company, I'd like to remind you that our full year 2025 press release, which can be found on our company website includes supplementary financial information with like-for-like revenue per vertical and adjusted EBITDA at the group level as if the Intelsat transaction had consolidated from the 1st of January 2024. We hope this additional disclosure helps you better understand the underlying performance of the combined business and complement your financial modeling going forward.

Let's turn to Page 14 for our financial highlights. Overall, as Adel mentioned, both revenue and adjusted EBITDA were in line with the outlook we provided last quarter. I'll start by walking through our company results on both a reported basis as depicted throughout the presentation as well as on a like-for-like basis at constant foreign exchange rates for comparison purposes.

Reported revenue was EUR 884 million for the fourth quarter and EUR 2.6 billion for the full year, resulting in a full year growth rate of 33.9% when compared to the same period last year. On a like-for-like basis, with constant foreign exchange rates, full year 2025 revenue was down 1.6% compared to 2024. We saw lower revenue in our fixed business as well as in media, partially offset with growth in our aviation and government businesses.

As previously discussed, the fixed data business has been facing a challenging competitive environment. And within media, the decline was driven by structural headwinds and the effects of a Brazilian customer bankruptcy. On reported adjusted EBITDA, Q4 was EUR 358 million, resulting in a EUR 1.2 billion for the full year 2025, showing growth of 19.1% year-over-year with margins of 40.5% for Q4 and 45.4% for 12 months.

On a like-for-like basis, full year 2025 adjusted EBITDA was down 12.1% compared to 2024, consistent with the outlook we provided on our last earnings call. The decline was driven by a few factors in line with what we've previously discussed. First, within our Aviation business, we delivered over 450 electronically steered antennas in 2025, which is an important milestone for this business, and it's worth mentioning that we have another 600 ESAs still to be installed. This revenue is initially profitability diluting before enabling higher margin service revenue after installation.

Additionally, as expected, we did see some impact from timing differences between onboarding and decommissioning certain airline customers. Next, the Intelsat IS-33e anomaly, which occurred in the fourth quarter of 2024, resulted in higher third-party capacity costs in 2025 as affected customers were retained. And in government, we had some timing impact mainly due to the U.S. budget delays at the start of last year, contract rationalization by the U.S. Department of Government Efficiency, otherwise known as DOGE and some postponements of large contracts in part due to the U.S. government shutdown in late 2025. The good news is these awards are merely timing issues and several are expected to materialize this year, underpinning our confidence in future growth.

Lastly, with structural declines in media and difficult market conditions within the fixed data business, margins are impacted by the change in overall company mix. We expect the decline in media to improve going forward. And on fixed data, we are focused on restructuring the business by securing the most value additive deals supported by disciplined capacity allocation.

Moving now to Page 15. I'll discuss in more detail the top line financial performance of our vertical segments. Media's reported full year 2025 revenue was EUR 977 million for the year, up 7.9% over prior year as inorganic growth more than offset anticipated segment contraction in this business. On a like-for-like basis, media was down 12.6% driven by structural declines with capacity optimization in mature markets, standard definition channel switch off in the full Q2 to Q4 impact of a Brazilian customer bankruptcy.

Despite the year-over-year decline, the Media business ended the year with a solid backlog of EUR 3 billion and serving close to 2.3 billion viewers worldwide. As the company's largest segment, Media carries strong margins, resulting in solid cash flow. In 2025, this business closed on roughly EUR 450 million of new business and long-term renewals, which span into the next decade, reinforcing customer confidence in our solutions. It is important to note that although global TV viewing is evolving and linear consumption is structurally declining, we expect the trend in our media business to improve. Free-to-air, free-to-view and sports and events remain resilient, while satellite continues to provide most efficient and reliable access in many remote regions.

Moving now to Page 16. Our networks verticals comprised about 60% of total company revenues for the full year 2025, with reported revenue up 55% year-over-year. On a like-for-like basis, networks revenue increased by 6.6% versus the prior year, representing the fourth consecutive year of growth for networks driven by increases in both the aviation and government segments. Within networks, the government business had revenues of EUR 726 million for the full year up 47% over 2024.

On a like-for-like basis, government grew 17.3% year-over-year driven by demand in European global government and the IRIS2 program. This growth was partially offset by timing impacts and budget cuts within the U.S. government portion of the business, as I mentioned earlier.

As we look ahead, we expect growth in both the U.S. and global government segments, driven by rising demand for our secure multi resilient and sovereign solutions, particularly mesosphere. Geopolitical tensions and shifting defense priorities, especially in Europe, are accelerating government investment and sovereign space capabilities and robust communications infrastructure, with proven multi-orbit solutions and a strong track record serving European, U.S. and Allied global governments, SES is well positioned to capture the surge in demand.

Our aviation business continues to show solid growth, supporting around 3,000 aircraft tails, thanks to our strong pipeline of ESA antenna installed and subsequent service revenues. For the full year 2025, aviation revenue on a reported basis stood at EUR 382 million, more than doubling the size of the business. On a like-for-like basis, this segment has seen a 29% growth versus prior year, with continued momentum in securing global airline customers and commercial traction around our multi-orbit ESA antenna. This strong commercial momentum supported by new installs and subsequent service revenues underpins our future revenue growth and highlights the strength of our value proposition in a competitive market.

And on our fixed and maritime business, reported revenues totaled EUR 530 million for the full year. On a like-for-like basis, revenue declined 15% due to competitive headwinds primarily in our fixed data business. We continue to navigate these headwinds with a disciplined approach, which includes rationalizing and prioritizing capacity in our growth segments.

In our Maritime segment, demand for NEO capacity remains high, evidenced by solid cruise renewals as well as in commercial shipping, where we serve more than 13,000 ships globally with our Flex platform. Finally, Networks combined gross backlog stood at EUR 3.6 billion at the end of 2025, having secured close to EUR 1.4 billion of new business and renewals last year, with a strong aviation and government pipeline as we look ahead.

Our solid backlog and robust pipeline underpin our financial outlook and future growth momentum, reflecting sustained market demand for our multi-orbit solutions globally.

Now let's turn to Page 17 for a more detailed view of our capital allocation priorities and our debt maturity profile as of December 2025. Our combined like-for-like adjusted net debt to adjusted EBITDA ratio at the end of 2025 stood at 3.9x. This includes cash and cash equivalents of EUR 674 million excluding EUR 401 million of restricted cash, which is related to the SES led consortium's involvement in the IRIS2 program. It's important to note that we remain committed to deleveraging and returning to investment grade metrics while meeting our near-term debt obligations, maintain a solid liquidity position supported by prudent planning and stable market access, which provides us with flexibility for future financing decisions.

In terms of our debt maturity profile, we have EUR 1.3 billion coming due this year, including EUR 525 million of hovered notes. The current debt portfolio carries a weighted average cost around 4% with approximately 80% of SES debt at fixed interest rates. Furthermore, the weighted average maturity of our debt facilities stands at approximately 5 years, providing a solid foundation for financial flexibility and long-term planning.

In terms of capital allocation priorities, as we've said before, our objective is to pay down debt to 3.0x or below net leverage. We continue to make solid progress in our insurance settlement discussions related to the first 4 mPOWER satellites. In 2025, we successfully collected approximately USD 189 million or EUR 164 million. We'll continue to provide upbeat as the last settlement negotiations progress. We continue to invest in our MEO capabilities. And as Adel mentioned, our next-generation multimission MEO network, meoSphere, supported by new space innovators. This is underpinned by strong financial discipline to drive sustainable growth with a focus on new space technologies while transforming our approach to capital deployment.

Capital expenditures for 2025 totaled EUR 559 million on a reported basis and EUR 707 million on a like-for-like basis, primarily reflecting milestone achievements in the mPower satellite program. The EUR 559 million is below our prior outlook as a result of our continued focus on CapEx synergy delivery as we work towards optimizing our fleet and ground infrastructure. Further, the company has introduced a dedicated CapEx task force at the Board level designed to enhance oversight and ensure disciplined capital allocation aligned with long-term strategic objectives. SES continues to be sector-leading in shareholder returns.

We paid the interim 2025 dividend of EUR 0.25 per A share and EUR 0.10 per B share in October of last year. We expect to follow this with the final 2025 dividend of EUR 0.25 per A share and EUR 0.10 per B share to be paid to shareholders in April 2026 subject to shareholder approval at the upcoming Annual General Meeting on April 2.

As we've said before, once the company meets its net leverage target, at least the majority of future exceptional cash flows of the combined company will be prioritized for shareholder returns. We remain focused on improving the company's financial metrics as we go ahead. Our priority continues to be deleveraging with a return to investment-grade metrics, while being selective and disciplined as we pursue opportunities to drive growth focusing on investments where returns are clear and accretive.

Slide 18 outlines how our disciplined financial management strategy supports long-term value creation for shareholders. 2025 was a pivotal year for us. We began integrating 2 major companies rolled out best-in-class processes, initiated the consolidation of our ERP systems and strengthened compliance with SEC aligned controls. These actions accelerate decision-making, improve data quality and help us capture synergies faster.

We remain focused on disciplined capital deployment, ensuring every investment in line with our strategic priorities. We continue to tightly manage discretionary spending through automation, labor arbitration, cost efficiency initiatives and synergy delivery. These actions will structurally lower our cost base and drive margin improvement.

Cash flow continues to be a core pillar of our value creation strategy. We have further enhanced our cash discipline with tighter integration of cash metrics into operational decisions, alongside disciplined capital allocation and focused working capital initiatives, these actions are driving more consistent and sustainable cash generation. Together, these actions reinforce our capacity to invest, drive profitable growth and deliver attractive returns. And finally, and I want to thank the entire SES team for their dedication and exceptional execution throughout this complex integration.

And with that, I'd like to hand back to Adel for his closing remarks.

Thank you, Lisa. I echo your thanks to the team. It's been a heroic effort, right, bringing the 2 companies together and getting the results and getting the financial statements and all that stuff.

Okay. Let's go to Page 20. I'd like to present our 2026 financial outlook. After a challenging 2025, we're expecting our business to stabilize in 2026, some of the headwinds we faced last year are likely to continue into the first half of 2026, but we're executing firmly on our initiatives to offset their impact. This positions us well for the next phase returning to sustainable growth. In 2026, we will accelerate integration, execute on synergies, grow in key markets and continue innovating across our global multi-orbit architecture. As such, as on a like-for-like basis, with a full year consolidated Intelsat, we expect both revenue and adjusted EBITDA to be stable as compared to 2025 on a constant FX basis.

As a reminder, 2025 like-for-like numbers are shown at reported rates of EUR 1.12 per U.S. dollar exchange rate and more recent rates are in the EUR 1.18 to EUR 1.19 range. As we continue to fast track our CapEx synergy delivery, 2026 capital expenditures at the euro U.S. exchange rate of 1.2 is expected to be around EUR 700 million. This will include IRIS2, which is the first phase of meoSphere. This is around EUR 100 million lower than our prior guidance. Our Network of the Future, meoSphere, supported by new space innovators and IRIS2 are part of this CapEx guidance.

A quick update on IRIS2. SES is currently progressing Rendez-Vous 1 of the IRIS2 program, working closely to the European Commission and our statewide partners to validate project costs, tackle requirements and delivery time line. SES remains fully committed to the European Union's vision for sovereign secure and competitive space-based productivity infrastructure. The project must more -- I'm sorry, the project must work for both the European Commission and the Space Rights Consortium. We have clear objectives on how to make that happen.

As the lead member of the Space Rights Consortium, SES collaborates with all the partners to ensure the timely and successful delivery of IRIS2.

Let me also give you a quick update on the well advancing C-band process. The draft notice of proposed rulemaking, also known as NPRM was published by FCC last December and was followed by a round of stakeholder comments. SES filed its comments on January 20, and replied comments on February 18, supporting FCC's proposal for upper C-band clearance. SES remains fully committed to collaborating with FCC and all stakeholders to identify and implement the most effective technical solution that delivers mutual benefits for all parties involved.

It is FCC stated intention to auction up to 180 megahertz of spectrum in the upper C-band. The one big beautiful bill requires the FCC to complete a system of competitive bidding for at least 100 megahertz in the upper C-band no later than July 2027. FCC ruling is expected in the second half of 2026. This process continues moving on an accelerated time line, and we'll keep you updated accordingly.

Before moving to Q&A, I would like to conclude today's presentation on Page #29. Our vision is building a leader in space-based solutions. 2025 as a foundational year with the integration of a new company. Our focus was in getting the basics right and building a platform for the future that is scalable. Operationally, we're strengthening the network, as we started building and scaling our multi-orbit next-generation network with meoSphere, building on our successful success of O3b mPOWER Constellation and supported by new space innovators.

During 2025, O3b mPOWER Satellite 7 and 8 entered service and more recently, satellites 9 and 10 started providing much needed capacity. The launch of satellite 11 to 13 is on track and planned for second half of 2026. The year 2026, it's not just the continuation of integration. It is for us the acceleration of the new SES, building an industry leader. We're looking to stabilize the business and prepare it to grow by reshaping our portfolio to concentrate on the markets where SES has the right to win with customer-driven solutions, relentless focus on operational excellence and financial strength underpinned by synergy delivery.

As we enter 2026, we moved with momentum, accelerating integration, executing on synergies, growing key markets and continue innovating across our global multi-orbit architecture. Through this momentum, we're positioning SES to operate at the new scale leading in business performance, innovation and expansion. We're focused on delivering differentiated end-to-end capabilities across our segments as a global space solutions company. Our vision is clear, to lead the next chapter of space solutions industry, driving aviation, sustainable expansion and compelling value creation for both shareholders and our customers.

With this, we're now ready to take your questions.

[Operator Instructions] The first question is coming from Aleksander Peterc from Bernstein.

I just have a couple, please. So first one is on the margin outlook for the current year, presumably in '26, you have a lower impact from the IAS 33 failure that may have had an impact on Intelsat side of the operations in '25. So I would assume this would be a tailwind also equipment revenue was quite high in '25. Is that coming down? And you also have synergies that are already in play and will accelerate. So I'm just wondering what are the headwinds here to the margin for you to predict a flat year-on-year margin. That will be the first one.

And then the second one, just very briefly, if you could tell us anything new on the upper C-band process in terms of time line and amount of spectrum do you think you -- that could be in play here? Are we still talking about 160 megahertz as being the base case scenario here?

Yes. So I'll start with the margin outlook for '26 and then hand it over to Adel on the C-band. So EBITDA is stable from '25 into '26 with stable revenue while synergies are on track. So the reason that you don't see all of the synergies drive the growth in 2026 adjusted EBITDA yet is really driven by the company mix across the verticals. So as you noted, we still have strong equipment sales going through the aviation business. Maybe a way to think about it is we've got about 40% of that business is in terms of equipment sales. We ramped the ESA antenna installation significantly in the second half of 2025. And we still have quite a bit of equipment sales going into aviation into 2026.

Also, we do have a bit of a mix dynamic when it comes to some of our highly profitable businesses like media, which is in a structural decline, with the fixed business -- fixed data business that is also declining that we've taken active steps to rationalize how we're performing in that business and streamline things, make sure that we're allocating capacity over into the right areas.

So if you kind of look at it from a mix perspective, we are offsetting some of that decline with synergies. We're well on track when it comes to synergies, and we're feeling very good about our performance. But overall, given where we're at, we're stable on both revenue and EBITDA in 2026.

Great. Thank you, Lisa. And Alex, just to clarify, the IAS 33 third-party capacity is still in our numbers. On a compared basis, obviously, it gives us a little bit relief, right, because we didn't have it in 2025 compared to 2024. So that gives us a little bit of a relief. But it's still in there, and we're working hard to move that traffic on fleet, but given the demand for our fleet, it's not so straightforward, right? As soon as we find the capacity to move it, we will do that.

And by the way, the equipment -- I mean one thing we need to keep highlighting is this equipment headwind we have from airlines is translating into a service revenue. And we see it. So for example, one of the large airlines that did install over 400 kits in 2025 when we look at their margins in 2025 installation, if you look at their margin in 2026, it is significantly better. But as Lisa said, because of the success of sales, we have a good backlog of more than 600 terminals to install in the year. But so those dynamics continue.

Look, on the C-band, I mentioned it already, it's progressing very, very well. The replies to the comments have now closed. We expect now FCC to move and second half of 2026 to issue their ruling. FCC has clearly said they want to go as high as possible up to 180 megahertz, Aleksander, you've seen in our comments, we would like them to go up to 160 megahertz leaving some C-band for very specific applications that we think will be beneficial. But as I said, we are working closely with FCC and we will support them with their objectives, ensuring that our customers get the services that they need to have. So it's progressing. It's picking up speed actually.

The next question is coming from Roshan Ranjit from Deutsche Bank.

I've got 2 questions, please, and perhaps following up on the previous around the synergies. Now clearly, Lisa, you're very confident on that progression. I think that's clear from day 1. Now you're talking about at tracking. So if I think about what you previously said, I think 70% of the run rate by year 3, I suppose just to give a sense of how the fast track this is.

And given that the run rate should be achieved faster. Should we be thinking about an NPV higher than the 2.4 or are there kind of associated higher costs and maybe moving a bit faster and extracting the synergies?

And the second question is around the midterm. Now I know you did comment at Q3 stage on those midterm targets because of the many moving parts. Is that still the case now? And when can we expect any details around the midterm targets within the integrated group.

Yes. So sure. So on the synergies, if I take that one first, we did fast track the execution of some of the key labor synergies early in the first 6 months of this integration. Obviously, as you work through those things, they are hard decisions to take. But as Adel mentioned in his prepared remarks, we took those decisions quite quickly. It's very important for us to have been able to stabilize the organization, and that did result in quite a number of our employees exiting the organization.

Now at the same time, we've taken a very hard look at optimizing our fleet, and that includes satellites, satellites that we have on order and our ground infrastructure. To make decisions on that, it does take a bit of work. So we've started -- we've accelerated our process in terms of making those decisions. And I think you'll expect to hear some more things from us probably within the first 2 quarters of this particular year.

So all in all, we are completely on track with respect to synergies. I don't anticipate that we are going to increase our expectation of what we're going to accomplish for synergies. It's just that we're going to try to execute those things as quickly as we possibly can.

And then in terms of midterm guidance, obviously, 2025 was a milestone year for SES. It was a year of major progress, step change in the company's scale, decisive actions while integrating Intelsat, we've been delivering on our synergies since day 1. Some of those things, like I said, are under rigorous scrutiny. We're putting in place some of the ground rules for how we operate a business and who make investment decisions going forward. We are in the middle of the IRIS2 Rendez-Vous 1 process. So we expect to have more clarity as we round out that process. We're also going to host the Capital Markets Day later this year. And at that point in time, we'll be better prepared to give more midterm guidance.

And we look forward to that.

Look forward to that. We absolutely look forward to that.

The next question is coming from Ben Rickett from New Street Research.

I had 2 questions, please, if possible. Firstly, just to help the sort of cash flow modeling for 2026. Can you say what we should be expecting in terms of lease expense? And also, I think there was some noncash EBITDA Intelsat. If you can quantify what that would be in 2026?

And then second question, just on the media revenue trends. So in the second half, they were down 16% year-on-year. Is there any one-offs within that? Or I mean, obviously, you're impacted by Brazil. But I mean are you still expecting the midterm trends there to be mid-single-digit decline? Or could that be a bit worse now?

Then that was on the media. The last part was on the media, right?

Exactly on the media revenue. .

Yes, it wasn't decline in 16, it was about 12, we got it.

Okay. Yes. So cash flow. So 2026 cash flow, fairly from a lease expense perspective, noncash EBITDA perspective, fairly stable from what we've communicated previously, just off the top of my head, and you just have to check the press release, but noncash EBITDA is around EUR 200 million. We expect that to decline about EUR 20 million to EUR 30 million each year as we go forward.

And then on some of the one-offs, I think as you know, every year, we have a number of one-offs. So I don't expect 2026 to be any different than 2025 at this point. It's fairly stable. We'll look at one-off year-over-year. We are going to be quite happy to have the Brazilian activity behind us at this point going into 2026. So while media declined 12.6% from '24 into '25, we do expect that to decline to kind of taper off a bit in 2026.

And just to add to that, Lisa. So Ben, we do expect media to be back to where we talked about, which is kind of a mid-single-digit decline. That's the model, right? And we see it now coming back to normal in 2026 after this bump that we had in 2025 was what Lisa described.

That's great. Just on the first question, you can't say anything about the lease expense you're expecting for 2026? So I know Intelsat was quite significant lease expense.

I don't expect any changes between '25 and '26.

We can follow up with you on that. But -- we don't see anything abnormal happening in 2026. So what is it decline? Yes, it's going to -- the team here is saying it's going to be going down. But let the team follow up with you to give you the exact number.

The next question is coming from Nick Dempsey Barclays.

I've got 3 left, please. So first of all, where could you see a help to your revenues this year from what has been happening currently in the Middle East this weekend? Of course, the U.S. military always takes capacity with a view to having flex to conduct operations. But are there areas where you could achieve extra services revenues or could this situation help you to fill SES 9 and 10 more rapidly?

Second question, you said I think you're expecting a ruling on C-band in the second half just so that I understand what we're talking about, do we mean that in that time frame, the FCC would talk about how much satellite operators would be paid to clear a specific amount of space in the band. Is that exactly what we mean by a ruling?

And then on risk weight, you talked about the Rendez-Vous. Is everything on track in terms of timing as you'd hoped a year ago? Are there any risks that this project takes longer and could end up costing more?

Very good. Well, thank you, Nick. Look, a couple of things. Let me start with the first question, right? So it's -- it's very difficult for us to comment on what we're going to be able to do in conflict scenarios, right? However, the demand for our services continues to surge. And we have multiple capabilities and multiple contracts, both with NATO and the U.S. government and the European Commission that is able to use that capacity when they need it. And when they do, and there's a search, there's obviously an opportunity for us to deliver better performance in our government business.

It's also important to mention that although the U.S. had headwinds in 2025, the ones that Lisa explained and the one we talked about in November last year, the European business and the global business had a fantastic year with double-digit growth. And that will continue. So we see that happening going forward. So I'm not giving you the exact answer, but the outlook is positive and is accelerated with conflicts, but not even without conflicts, the buildup of sovereign capabilities is now a big priority for many nations and continues to be an important element of Space Force activities.

Look, on the C-band ruling, so what we expect when the ruling comes out, is FCC to decide how are they going to handle incentive payments and reimbursement payments for relocation costs. And as you've seen from our filings and filings of many, many others, there is big support to follow the same process that was used with what we call for C-band 1.0 to the final hearing, right, with how the incentive payments are calculated and who is incented as well as the relocation costs that need to be reimbursed.

So we expect when the ruling comes out that FCC would clarify those elements of the ruling, right? And they can't really predict exactly what FCC will do, but that is expected to be part of the role. And then the final point on Rendez-Vous, yes, things are progressing, working very, very hard as we adjust the the solution with the technical results and the outputs that we have from all the testing and the costing that we have done.

And as I said, look, this is not something we want to rush right? We want to make sure we do it at the pace that's required to ensure that it's a win-win. We are not going to do a project that's a lose-lose or lose-win. It has to be a win-win. And therefore, we're working diligently with full commitment to the commission and the objective of building a European sovereign capability. And we're excited about, right? Because that whole architecture of IRIS2 is exactly what we've been pitching to the world, a multi-orbit architecture with connections between the satellites and different orbits with resilience. And obviously, it's an enablement for our meoSphere ambition to be the first phase of that project. So that's how it's going, Nick. I hope that answers your questions.

[Operator Instructions] The next question is coming from Paul Sidney from Berenberg.

Two questions as well, please, if I may. Firstly, just sort of building on the discussion we've been had on the call and I think following on to Nick's question on government. Clearly, very rapidly evolving geopolitical situation we're seeing. But this is also -- are we starting to see a mix shift away from Starlink and towards yourself other non-U.S. satellite networks? I understand obviously government appetite demand is growing very fast. But there also that mix shift that we're seeing, if that's starting to happen? And then just a question, at least on the CapEx guidance.

If I understand rightly, it's sort of underlying EUR 500 million now ex IRIS2 components. Is that the sort of run rate we should expect going forward? I know you'll update us later in the year and give us more detail. But again, just building on all the CapEx discussion we've been having on the call so far. Is that EUR 500 million now a bit more realistic than the EUR 600 million to EUR 650 million?

So Paul, look, the -- keep in mind, look, the conflict that we're seeing today clearly accelerates and drives demand in short term. However, the macro dynamics are such that the requirement and the acceleration of space demand has been happening before these conflicts, and it's happening at scale. And it's because, as I described in the beginning of the presentation, space is now a war domain. It's a war-fighting domain, right? It's no longer a contested domain. There is an acceleration across all nations around the world, especially in the United States and European Union to build up these capabilities at scale. And it's part of it is being able to build your own sovereign capabilities. You're looking at space as part of their NATO objectives and how to reach the NATO levels of spend that is required but also with the objective of making sure that their presence is competitive, right, because it is a war-fighting domain going forward. And we, as a company, are moving ourselves to be more and more exposed to that government opportunity.

We feel our architectures, our solutions capabilities with the meoSphere expansion with what we have in GEO assets positions us extremely well, right? And that's what's going to happen. Now I don't believe the mix is going away from Starlink or other American players. I think the overall demand in the market is expanding. You will see Starlink and Amazon and others growing as well in this segment because there is a massive demand requirement across the world, especially in allied nations to keep building that volume and capability out. So don't see it as money moving from one to the other, seeing as a major expansion of the overall opportunity and the European nations deciding that they need to have their sovereign capability as well, right?

They will use the other partners, but they need their capability as well, and that works very well for us, especially with the architecture that we're building. Remember that idea that I put on the table, which is no longer an idea, it's design principle, we can give slices of our network as sovereign networks to different nations, where they control the traffic, when they control how it lands in their systems under their security capabilities. And that's a very unique thing that we are doing as a company compared to some of our other players.

And look, we are leveraging and expanding our partnership network. So for example, a great company that's called Kratos, who's been an expert in defense capabilities is now a partner. We're working with them on figuring out how do we virtualize the networks that we have. How do we take our capabilities to the next level. And I think they create a CEO in their earnings comments mentioned SES, and I want to make sure we mentioned it as well here because those are the type of partnerships that creates this unique solutions in an open collaborative environment versus having closed systems, right, that are specific to what you can deliver.

Look, in terms of CapEx guidance, and Christian will help me here for a second. We've always said that our base CapEx for the company going forward is between EUR 600 million and EUR 650 million per year, excluding IRIS2 and excluding meoSphere. And we have given guidance in the past that meoSphere plus IRIS2 would be about EUR 200 million in 2026 and then growing to EUR 400 million in subsequent years. So what are we doing with that? You can see it already in 2026, if you look at our EUR 650 million base CapEx plus EUR 200 million of IRIS2 CapEx adds up to EUR 850 million. Our guidance is EUR 700 million, to be clear.

Why is it EUR 700 million and not EUR 850 million, because of the synergies that Lisa talked about, we're accelerating the network synergies. We have decided not to spend money on certain areas. We're optimizing the ground investments. We're looking at ways of moving the money away from legacy into the growth areas, right? And that is what's helping us to contain this CapEx.

Now the team is going to give you more guidance in terms of future, especially as Lisa said, when we have our Capital Markets Day in the second half of the year, we are going to show you the profile of how we're going to build meoSphere how we're going to expand it. But again, I want to reiterate, the way we're going to build meoSphere with IRIS2 being the first phase is an iterated phased approach. We want to get customers on board, when have customers sign up before we go into larger CapEx spends, right, in a very controlled way. That is what we are going to do as a company. So I hope, Paul, that answers your question. Lisa, do you want to add anything?

No, I think you did it.

Can I just add, Adel has shared online the various visits of the several ambassadors, which have visited us here in Betzdorf and also EU Commissioner Kubilius more recently so that.

The European Commissioner Kubilius, who is the commissioner of Defense and Space. We had Supreme later Commander who were here with us. It's all public information. We had multiple defense ministries that come over. I mean, this just shows you the demand and the importance of SES in the government and defense sector. It's pretty important to recognize that, right? Because people see that multi-orbit architecture is absolutely a requirement. MEO plays a very important role in the resilience, the ability to move traffic, the ability to create alternatives and the ability to carry traffic for very specific missions. So that's what we're seeing in the marketplace, Paul.

That's very clear. Could I sneak in a very quick question at the end, please. So we saw reports of Norway joining IRIS2 projects even in the U.K., and I think there were some headlines potentially going as well. Does that make the project more likely? And does it potentially change economics?

Look, the project -- Paul, so first of all, when I say win-win, that's what I talk about economics and others, right? It's got to be right for us as a publicly listed company. And I've always been very, very vocal. And the European Commission knows our requirements, right? They know that in order for this to be a success, we have to be successful, right? We cannot have a project that burdens our financial position. So that has always been the case. It will continue to be the case. And I have much confidence that we will be able to figure out the path.

And the European Commission is very committed to this project. Where you're seeing the countries joining, I believe that will continue. And I believe that you will see beyond the European Union and the European Union member states, other allied nations joining the project over time, right, given the importance being the ability to connect to that network and expand it. And outlook, our goal is when we think about meoSphere as an example, right, we have a unique position to build out that backbone of the network with MEO part of the IRIS2 capability.

We are not -- our goal is not to stop at the Iris Square requirement because the demand is expanding. So our goal is to keep building and expanding in a phased approach based on the demand that we see in the market. So what's happening, IRIS2, and by the way, the same thing applies to Intelsat. It gives us the opportunity as the consortium to develop the new systems, the new capabilities as the first phase and then build on it going forward, and that helps the economics significantly when you start adding incremental capabilities without having to repeat the nonrecurring expenses, if you will, that you incur when you're building a new system.

The next question is coming from Halima Elyas from Goldman Sachs.

I wanted to follow up again on defense. So growth has been clearly supported by changing global attitudes towards defense spend. But when do you think we will see this translate to more meaningful tailwinds? And how will it manifest? So is it most likely to be reflected in higher capacity demand? Or do you think there's potential to either accelerate or maybe expand the scope of projects like IRIS2?

And then on the flip side, has there been any notable change in U.S. attitudes or spend towards European solutions over the past year?

Halima, thank you for the question. So let's start with the first one, right? So our government business has been growing double digit now for several years, right? And it's accelerating. We had a bump in 2025 with the U.S. government shutdown, those initiatives, which hurt us in certain areas. And on the same time, we won multiple projects that will drive the future growth.

I believe with the system, we're proposing the expansion because what we're trying to do, Halima is expand beyond communications capabilities. There is a massive demand -- and by the way, I want to make sure, again, everybody understands in the call. The demand is not driven by the current conflict. The demand for space is driven by the fact space has become a war-fighting domain, just like ground, air, sea and cybersecurity. These are the different domains of the defense organizations.

Space is the domain to be treated the same exact way. So as forces think about strengthening their ground capabilities, strengthening their AO capabilities, they're thinking the same way in space. So before any of these conflicts happen, that's been a decision from an architecture point of view of how to create better deterrence, better defense and better strength. And that's where European Union and other nations have decided they're going to have to significantly increase their spending in space. And that is driving the demand, right?

The conflicts obviously drives spikes in demand for a certain period of time because people need the capacity and so on. So our strategy, as I described with meoSphere, is to expand beyond communications because the satellites that we will be introducing part of the next-generation MEO networks, have the real estate and the power, Halima. So today, our empower satellites had less than 10 kilowatts power on the satellite.

Our future satellites will have 20 kilowatts. We're doubling that. The real state of -- which is why I said why we like bigger satellites rather than smaller satellites is enough to have more, what we call hosted payloads to do missions beyond communications. And I described some of these missions, missile defense, missiles tracking, relay between different orders, right, slices of the network, space awareness. Those are all new opportunities for SES to enter over the next few years, and this will drive growth -- significant growth in the government sector that we cover today because we are not exposed to that today.

With our future platforms and customers signing up will be exposed to that opportunity as well. And that is absolutely required. And I'll give you an example. Golden Dome in the U.S., which is a protective shield against ballistic and other kind of missiles. That is in billions of investments. We believe our MEO capability could be enhancing that beyond the military specific investments that will be made.

The same thing MEO we'll be building as their similar shield for Europe, and we will be a partner and a player in that capability as well. And we're building the satellites that add this functionality. So we are very excited, right, about the opportunity going forward. And you can't think of it as because there's conflict today that demand is going. It's actually a fundamental shift because space has become a war filing domain.

Now your question second about have we seen notable U.S. spend shifts? No, we have not, right? We believe the U.S. is open to use Allied capabilities. SES is positioned in the U.S. very well. We have an established capability that we've been working there for 40 years with specific clearances that's required in order to be able to participate in some of these different opportunities.

So we have not seen that yet. We hope not to see it. We're proud to be an allied nation and allied company that works on both sides of the Atlantic to bring capabilities to both, of course, our home nations and European Union and those capabilities, but also in the U.S. as an ally like for these forces.

There are no more questions at this time. So I hand the conference back to Christian Kern for any closing remarks.

Thank you so much for joining today's call. I think it was a very clear message that 2025 was bringing -- was about bringing the companies together. 2026 is stabilizing it, and then we take it from there in terms of teeing it up for growth. The overall layer in terms of the defense thing has been very well reflected by our top management team. If you have any follow-up on this, please reach out to the IR team, we are there to help. And again, thank you very much for joining us today.

Thanks for participating in today's call. You may now disconnect.

Ladies and gentlemen, welcome to the SES 9 Months and Third Quarter 2025 Results Conference Call. [Operator Instructions] Now I will hand over the conference to Christian Kern, Head of Investor Relations. Please go ahead.

Thank you, Gaya. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES Q3 2025 Results Call on behalf of our management team. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document has been prepared under International Financial Reporting Standards.

As usual, this presentation may contain announcements that constitute forward-looking statements, which are no guarantees for future business performance and involve risks as well as uncertainties. Also, Certain results may materially differ from those in these forward-looking statements due to several factors. We invite you to read the detailed disclaimer on Page 2 of the presentation, which is also available on our company web page.

Today, I'm joined by our CEO, Adel Al-Saleh; and our CFO, Lisa Pataki, who will take you through the presentation followed by a Q&A session. Adel, without further ado, over to you.

Thank you, Christian. Good morning, everyone. I'd like to start on Page #4 with the new SES. Now fully consolidated with Intelsat after transaction closed on 17th of July 2025, and it has been a very strongly and very busy and extremely difficult period for us, bringing the 2 companies together, creating a heavy weight in our industry.

So first of all, let me briefly recap the rationale behind this transformational deal. We brought together 2 industry leaders beyond scale through a value-accretive acquisition with more than 60% of revenues in high-growth segments and a total net present value of EUR 2.4 billion in synergies. We have started executing on these synergies from day 1 of closing. In fact, this transformational combination was not just about bringing SES and Intelsat together. It was about redefining who we are as a company. We are creating a new SES, a global multi-orbit connectivity powerhouse and a true space solutions company, empowering businesses and governments worldwide of integrated purpose-built satellite network and connectivity solutions.

We have brought together a powerful mix of talented people, market-leading engineering capabilities, network infrastructure, spectrum, innovation and global relationships. We're extending beyond satellite and inactivity and exploring adjacent capabilities to grow and compete more effectively in space based on our network, such as hosted payloads space situation awareness and direct-to-device services. All of this has followed us on shareholder value creation and returns. For our customers, we have created a more capable and forward-looking space solutions company, one that combines a compelling value proposition backed by strong underlying capabilities and a continued commitment to innovation focused on solving our customers' challenges. For our shareholders, we are driving value creation and shareholder returns to our focus on profitable growth in combination with disciplined capital management and allocation.

Let's move to Page #5. With the combination of SES and Intelsat, we have significantly strengthened our portfolio. Our foreign verticals, how we manage the business, if you will, are now media, government, aviation and fix and maritime, with the combination, we have created an undisputed leader in satellite-based communication solutions. Let's start with media. Media is our largest and most cash generated segment, now operating an even greater scale, delivering nearly 11,000 channels to 2.3 billion viewers worldwide. We're securing long-term renewals well into the next decade. And despite industry headwinds, our strategy is clear: defend and optimize 5 value neighborhoods by leveraging our industry-leading reach while expanding into new segments like sports and events, free-to-air and free to view. In our network segments, government, aviation and fixed and maritime, capacity of resources are precious, and we're purposely allocated to the right opportunities as we scale over the future. With our expanded scale and capabilities, we're well positioned in our new growth segments, particularly in government and aviation.

In government, we're supporting over 60 global government organizations, including European governments, U.S. government, NATO allies and 5 nations. We will continue to focus on growing and expanding on both sides of the Atlantic, especially as the geopolitical environment drives increases in global government budgets by capturing sovereign demand and expanding into new state-based solutions. We're not only offering government's capacity, but truly space partner, allowing governments to diversify and expand the space architecture. In aviation, where we have gained substantial scale through the acquisition will not provide in-flight connectivity to 30 leading commercial airlines, supporting around 3,000 tails, powered by our multi-orbit electronic steering antenna technology known as ESA. We offered mobile coverage, multi-orbit, low latency and flexible business models that enable airlines to meet their ever rising bandwidth demand, especially with the rapid rollout of in-flight WiFi. Our strategy here is simple: accelerating growth by scaling our multi-orbit multiband solutions to stay ahead of this fast flowing market. And as our NEO network grows, we will make it available at scale to our airline clients across the world, providing truly unique multi-orbit multiband flexibility.

In maritime, SES is also well positioned serving 5 of the 6 major cruise lines and leveraging our scale up in commercial shipping. We are the leading provider of connectivity at sea, keeping passengers in cruise connected, informed and competitive in the fast-moving world. We're confident in our maritime platforms, which position us well despite facing pressures from some partners moving to LEO solutions. Our strategy is to focus, defend and rationalize supported by selective investments. Last but not least, our fixed business, remains very tough and highly competitive. We're serving important customers with 8 out of the world's 10 mobile network -- sorry, with 8 of the world's top 10 mobile network operators as well as major energy companies and drive digital inclusion across the world. Our strategy here is to rationalize and focused on green zones, where we have the right to win. We pursue higher yield opportunities, streamline operations and leverage digitization to improve efficiency and performance.

Let's go to Page #6. Here, we show you the combined assets supporting our new business. We're now a multi-orbit space solutions provider at scale. We operate a powerful fleet of around 120 state-of-the-art GEO and NEO satellites in a multi-orbit multiband network supported by over 150 teleports wall spread across the globe and an extensive ground network with over 600,000 kilometers of fine, covering 99% of the world's populated regions. In combination with strategic access to LEO capabilities, this unmatched scale and flexibility position us well to meet our customers' most demanding connectivity needs with unified solutions and accelerate profitable growth.

Let's move to Page #8. Discussing our 9-month business highlights and financial performance. The third quarter 2025 was the first quarter of the combined company, with Intelsat contributing roughly 10 weeks to the stand-alone business performance. Therefore, the following financial performance is shown on a reported basis with Intelsat fully consolidated from 17th of July 2025. In the 9 months of 2025, we showed a solid financial performance with revenue of around EUR 1.75 billion, up 19.8% year-on-year with growth in all verticals. Adjusted EBITDA for the 9 months was EUR 849 million, with 11% growth year-on-year and a margin of 48.6%. In the first 9 months of the year, we secured EUR 1.4 billion of renewals and new customer contracts with the majority coming from our growth segments, supporting our gross backlog of EUR 7.1 billion, which has been impacted by the weaker U.S. dollar and intercompany eliminations. We have just combined 2 companies with multiple platforms. We have been working on various scope changes, intercompany eliminations and some different accounting conversions. So this has been a rather complex reporting quarter.

In terms of like-for-like underlying trends, revenue was down minus 1.8% year-on-year and adjusted EBITDA declined around minus 10% year-on-year. These year-on-year trends can be mainly attributed to a few key business factors. Number one, in aviation, we're working through the backlog of ESA antenna implementations, which come with equipment revenue diluting profitability before enabling higher margin service revenue. There are also some timing differences between onboarding new customers, new claims and decommissioning some of the airline customers. In government, we have seen timing impacts, mainly due to the U.S. budget delays at the start of the year. contract rationalization by the U.S. Department of Government Efficiency and postponement of large contracts in part due to the U.S. government shutdown. These deals remain highly accretive and underpin our confidence in the future growth. In media, we continue to see expected structural decline with SD channel switch-offs and the drag from the Brazilian customer bankruptcy. This combined business is now over EUR 1 billion in revenue and remains highly cash generative. Going forward, we see the underlying decline unchanged in the mid-single digits, while having signed renewals well into the next decade. This remains our most challenged business in a highly competitive environment. We faced difficult market conditions and our focus on securing value-accretive deals supported by disciplined capacity allocation. And finally, just a reminder of the third-party capacity utilization after the failure of IA-33e as well as intercompany eliminations that we had to adjust.

Turning to Page #9. Let's talk about our notable wins that support our growing segments. We are trusted partner to customers worldwide in over 130 countries as evidence to our strong customer base. And our high cash generated media segment, we continue to see momentum, driven by the strength of our managed services offerings and the global reach of our network. As media evolves, satellite broadcasting remains the most cost efficient and reliable way to reach global audiences. SES continues to be a trusted partner to leading media companies such as Warner Bros. discovery having signed this year a long-term capacity agreement to deliver high-quality content to millions of TV users on 19.2 degrees East, our most valued TV neighborhood in Europe. In Q3, we renewed a business with major media customer in the Americas, including a multitransponder. We also had a long-term extension with a major U.S. program and have broadened our agreement with a long-time customer, is Mexico. In addition, we expanded our partnership with telecom [indiscernible], adding 2 ideal transponders and extending our capacity agreements through 2032. We also renewed a multiyear multimillion euro agreement with Arqiva for satellite capacity and our Prime video neighborhood at 28.2 degrees East. Under this agreement, SES will enable Arqiva to deliver a wide range of television channels as well as radio services to audiences in the U.K. and the Republic of Ireland. In Africa, we continue to build momentum with long-term renewals with our customers in East Africa specifically. We also extended important direct-to-home contracts in Asia and secured 2 new blue-chip broadcasters on our key orbital location for C-band distribution across Asia Pacific. Many of our large customers are now talking to us about extending our partnership well into the next decade. More to come on this in the future as we renew these contracts and are able to talk about them.

Let me now shift to our government business. We continue to see strong and growing demand for our resilient, secure communication solutions from government customers around the world. Together, we build a government solution business of scale on both sides of the Atlantic, being true space partner to over 60 government organizations, including European and U.S. agency. We're well positioned to tackle the sovereign capabilities, governments now demand with multi-orbit networks with special defense budget increasing both in the U.S. and most major allies as we view the government vertical as one of the strongest growth levers over the next few years. In Q3, the French Navy aircraft carrier, Charles De Gal, utilized SES' O3b mPOWER SatCom service during the Clemenceau 25 Mission. This high throughput, low line connectivity supported all operational needs on board, enabled seamless collaboration with mission partners and ensure uninterrupted availability for mission-critical applications. Our Iris Square program is also progressing well ahead of the [indiscernible] early next year. In the U.S., as mentioned, we're experiencing timing delays in some contract awards due to the continuing resolution and subsequent government shutdown. Despite this, our business is growing, and we remain well positioned for long-term growth. Notably, in Q3, the U.S. States force awarded 5 companies, including SES positions on a 5-year EUR 4 billion contract under the protected tactical satellite communications global program, known as PTSG, SES is now competing for a prime contractor position going forward. This initiative focuses on the design and demonstration of resilient satellite architectures with a potential for future delivery orders. The goal is to provide anti-jam secure communications for tactical military operations by leveraging both commercial innovation and defense expertise.

Also in Q3, SES Station Defense joined the Defense Innovation Unit Hybrid space architecture network initiative with our secure integrated multi-orbit networking platform known as SIMON. This program is building a secure, integrated multi-orbit network that connects commercial and government systems to deliver a short, low-latency, multipath communications across a scalable and resilient multi-domain architecture. These strategic wins highlight our commitment to innovation and growth in the government sector. With regards to aviation, this segment continues to be a growth engine for the company. Over the last 3 months, we have won 200 new tails from various airlines. We're winning new airline customers around the world for choosing SES because of our clear differentiators. These include our SES solution which uniquely enables access to GEO and LEO orbits, delivering broad coverage, low latency and unmatched resilience. We also offer multi-band flexibility across both Ku and Ka band and solutions tailors for both narrow-body and wide-body aircraft. Our flexible commercial models further strengthen our value proposition. All of this is underpinned by ongoing investments in our global network, enhancing the passenger experience down to the seat level and expanding our footprint globally to meet rising demand. While competition from NEO only providers remains very strong. The market is large and diverse enough to support multiplayers offering solutions tailored to the specific needs of airlines. In Q3, our ESA multi-orbit solution was selected by new airline customers across Latin America and Asia Pacific, spanning both narrow-body and wide-body fleets.

Today, it is flying on over 300 aircraft and has received consistently positive feedback from customers and analysts. In total, 60 airlines have committed to deploy our ESA across 1,000 aircraft globally, underscoring the growing momentum behind our offer. We also continue to make great progress with our open orbit solutions, including wins with Thai Airways, Turkish Airline and Uzbekistan Airways earlier this year. Our maritime business remains solid, fueled by strong demand from both customers as MSC Princess and Virgin. Our leadership in Oceanships Engage segment is proved by our end-to-end multi-orbit connectivity anchored by our managed meal network that enhances their onboard faster experience. In Q3, we secured renewals from multiple major cruise lines reinforcing the critical role of our solution play in this market. Today, we serve 5 of the 6 leading cruise lines SE.

Additionally, SES completed the largest cruise ship transition of the year, helping a major customer migrate from GEO to SES cruise and powered service. With SES cruise empowered, we're redefining the onboard experience, our real-time network optimization dynamically synchronizes space and ground systems across multiple orbits, enabling cruise operators to deliver consistent, high-quality connectivity at all times. Further to the cruises, SES is supporting over 14,000 vessels on the flex maritime global network, exclusively through our major solution partners, serving commercial shipping, oil and gas and fishing vessels. While our fixed segment continues to face competitive pressures from NGSO players, we remain focused on offering differentiated solutions to our clients. We're doing this by leveraging the strength of our multi-orbit GEO meal LEO offerings, along with robust cell backhaul and trunking services. These capabilities are supported by our extensive ground infrastructure which enables us to deliver reliable connectivity across these diverse geographies. We're serving 8 of the world's top 10 mobile network operators and a multiple of energy companies across the world. For example, we support orange across Africa with services in Mali and Burkina Faso, and most recently expanding into Liberia and additionally, in Q3, we secured business with major mobile network operators in the Americas and expanding our digital inclusion services in Brazil with Telebras. This further strengthens our position in that region. As you can see, we're creating stronger, more agile, more competitive SES, one built on lead across orders, across markets and across technologies.

Let's turn to Page #10. This page highlights our synergy progress and integration efforts. I'm pleased to report that the integration is progressing well. In the first 90 days, we have successfully established our new organization from the leadership team through every level of the company. We have also implemented our new operating model, which defines how we manage the business on a day-to-day basis and ensures alignment across the combined organization. I'm proud to share that we have launched our new SES brand, a new purpose to capture the essence of who we are, space to make a difference and a new pipeline sole and power store. Our synergy-driven delivery plan is strong, and we're crystallizing synergies more rapidly. What we have communicated is that we expect to deliver synergies with a total net present value of EUR 2.4 billion, representing an annual run rate of approximately EUR 370 million, with 70% of these efficiencies expected to be executed within 3 years. We're moving fast and delivering ahead of plan. We're moving fast and delivering ahead of our plan on our synergy commitments as we began identifying and capturing synergy opportunities across multiple areas. Our annual run rate of OpEx synergies of EUR 210 million at being fast track. We have already executed key labor and nonlabor synergies, including overlapping contracts, office footprint consolidation, third-party capacity optimization procurement savings, IT consolidations and license optimization with long IT systems, such as ERP and CRM are all progressing to plan. We're approaching this process with the utmost care of respect, ensuring we support our people while aligning our workforce to the needs of the new organization.

On the CapEx side, we're fast tracking and the annual run rate of EUR 160 million savings through smarter asset use, non-replacement of certain satellites and the rationalization of networks and ground infrastructure. These efficiencies would flow through in 2026 and 2027, reflecting our determination to deliver with [indiscernible]. We're executing with discipline and precision. And with our financial year 2025 results, we plan to share further details on our synergy progress.

With this, I'd like to hand over to our CFO, Lisa, who will share with you more details of our financial performance.

Thank you, Adel. Before I begin my remarks on the financial performance of the combined company, I would like to inform you that in the Q3 results press release available on our company website. You will also find supplementary financial information with like-for-like revenue per vertical and adjusted EBITDA at the group level. As if the Intelsat transaction had consolidated from the 1st of January 2024. This additional disclosure should help you better understand the underlying performance of the combined business and complement your financial modeling going forward. As usual, our Investor Relations team is available to help you with any questions that may arise after this earnings call.

Now let's turn to Page 12 for our financial highlights. I will start with our financial performance for Q3 and 9 months, which is shown throughout this presentation on a reported basis with Intelsat fully consolidated from 17th of July 2025. This is equal to about 10 weeks of Intelsat performance, which we did not have in the prior comparative period. Revenue for SES was EUR 769 million in Q3 2025 and EUR 1.747 billion for the first 9 months of 2025, showing growth of 19.8% compared to the same period last year at constant foreign exchange rate. On a like-for-like basis, 9 months revenue was down 1.8% year-over-year with strong growth in aviation and government outpacing lower revenues in fist in which we are navigating a challenging competitive environment. and media, which declined as expected due to structural headwinds and the effects of our Brazilian customer bankruptcy. On a year-to-date 9-month basis, our revenue was negatively impacted by EUR 52 million, of which EUR 17 million were attributable to the weaker U.S. dollar and the remainder to intercompany eliminations and alignment to IFRS accounting rules. Q3 2025 adjusted EBITDA was EUR 328 million and EUR 849 million for the first 9 months of 2025, showing growth of 11% year-over-year, driven by volume with margins of 42.7% for Q3 and 48.6% for 9 months. In the first 9 months, our adjusted EBITDA was negatively impacted by EUR 10 million, attributable to the weaker U.S. dollar. On a like-for-like basis, 9 months adjusted EBITDA was down 10.2% year-over-year with near-term margin headwinds driven by profitability diluting equipment sales from the electronically steered antenna, ESA, installations in our aviation business in combination with some timing differences between onboarding and decommissioning airline customers. The Intelsat IS-33e anomaly, which occurred in October 2024, which required higher third-party capacity; and finally, mix and timing impacts on government revenue. In addition, as Adel mentioned, we have introduced more discipline to pass on tactical opportunities that are outside of our green zones and not margin accretive to our business.

Moving now to Page 13. I would like to discuss in more detail the top line financial performance of our vertical segments. Media's 9-month revenue was EUR 686 million, and accounted for close to 40% of group revenue. Total revenue remained stable year-over-year as inorganic growth effectively offset anticipated segment contraction in the media business. On a like-for-like basis, media is down low teens year-over-year, driven by structural declines with capacity optimization in mature markets, standard definition channel switch off in the full Q2 and Q3 impact of a Brazilian customer bankruptcy. Media continues to operate as a highly accretive cash generating business for SES. Year-to-date, we have signed EUR 440 million in long-term renewals, spanning well into the next decade and new business reiterating customer confidence. Year-to-date, the media business growth backlog stands at EUR 3.3 billion. SES's media business serves close to 2.3 billion viewers worldwide, ensuring sustained reach and future revenue visibility, underpinning the cash-generative nature of this business. While the world's TV viewing trends are changing and our structural decline, we expect the curve to flatten as free-to-air, free to view and sports and events become more prominent in remote regions continue receiving TV access, most efficiently via satellite.

Now moving to Page 14. Our Networks business comprises around 60% of total group revenues for the first 9 months of 2025. Networks revenue increased 36% year-over-year driven by growth in government and aviation. The same trend is also valid on a like-for-like basis with growth in networks driven by the same 2 segments. Government in the first 9 months of 2025 has seen strong demand and growth in both the U.S. and global markets, with revenues of EUR 491 million for the first 9 months of 2025, a 33% growth year-over-year. On a like-for-like basis, government is also growing double digits despite the timing impacts that Adel mentioned. Growth was driven by demand of European and global government, completion of project milestones in the period and managed services in the U.S. We expect this vertical to drive continued growth as we see increased demand for our secure multi-orbit resilient and sovereign solutions. Amid the ongoing geopolitical shifts and rising global tensions, we are seeing governments prioritizing sovereign capabilities and robust communications infrastructure, particularly in Europe, where defense spending is increasing. SES is well positioned to meet these needs with our proven multi-orbit solutions and growing track record of trusted partnerships of serving the European and U.S. government as well as allied governments. Our aviation business continues to be a strong growth business for the company, now at a bigger scale, thanks to the Intelsat acquisition supporting over 3,000 aircraft tails.

The first 9 months revenue stood at EUR 223 million, showing 112% growth year-over-year with continued momentum in securing global airline customers. On a like-for-like basis, this segment has seen a double-digit growth year-over-year, thanks to increased commercial traction around our multi-orbit ESA antennas. This strong commercial momentum and new installs are a key driver for future revenue growth and showcase our strong value position in a competitive market. The fixed and maritime business achieved EUR 339 million in the first 9 months, showing 13% growth year-over-year. On a like-for-like basis, revenue was declining year-over-year due to the competitive headwinds, primarily in our fixed data business, in combination with our rationalization and prioritization of capacity to our growth segment. We continue to hold our footing in our maritime business, where demand for NEO capacity remains high. Finally, Networks combined gross backlog stood at EUR 3.8 billion having secured close to EUR 1 billion of new business and renewals this quarter with a strong aviation and government pipeline. Our strong growth backlog and robust pipeline support our forecast and future growth momentum, reflecting the market's demand for our strategy and multi-orbit solution as being essential to meeting evolving connectivity needs.

Now let's turn to Page 15 to share with you a more detailed view of our capital allocation priorities and our debt maturity profile as of the 30th of September 2025. Our combined like-for-like adjusted net debt to adjusted EBITDA ratio stood at 3.7x after closing the Intelsat transaction. This includes cash and cash equivalents of EUR 965 million, excluding EUR 266 million of restricted cash related to the SES led consortiums involvement in the Iris Square program. We remain firmly committed to deleveraging and meeting our near-term debt obligations. Our debt maturity profile is well distributed. The current debt portfolio carries a weighted average cost of 3.9% with 84% of SES debt at fixed interest rates. Furthermore, the weighted average maturity of our debt facilities stands at approximately 5 years, providing a solid foundation for financial flexibility and long-term planning. In terms of capital allocation priorities, our objective is to pay down debt to at least 3.0x adjusted net leverage with existing liquidity and our undrawn committed facilities, SES is well positioned to meet near-term obligations, including the debt falling due in Q4 2025. We continue to make solid progress in our insurance settlement discussions related to the first hour satellites. Today, we have successfully collected approximately USD 87 million. We will provide further updates as settlement negotiations progress. We continue to invest in innovation with discipline to drive sustainable growth with a focus on new space technologies and transforming our approach to capital deployment. This shift aims to reduce reliance on large-scale CapEx cycles.

Capital expenditures in the first 9 months totaled EUR 335 million primarily reflecting milestone achievements in the mPOWER Satellite program. With respect to shareholder returns, SES continues to be sector leading. We paid the interim 2025 dividend of EUR 0.25 per A share and EUR 0.10 per B share on the 16th of October. Subject to shareholder approval, this is expected to be followed by a final FY '25 dividend of at least EUR 0.25 per A share and EUR 0.10 per B share to be paid to shareholders in April 2026. Once the company meets its net leverage target, at least a majority of future exceptional cash flows of the combined company will be prioritized for shareholder returns. SES remains focused on improving its financial metrics. Our priority is deleveraging, while selectively investing in growth where returns are clear and accretive, capital allocation remains disciplined.

Slide 16 outlines our disciplined financial management strategy, underscoring our commitment to driving long-term value for shareholders. We are focused on the seamless integration of Intelsat implementing best-in-class processes, policies and combining enterprise resource planning systems while maintaining operational excellence. As part of the acquisition, we are implementing SEC compliance measures to align with regulatory requirements supporting the combined entities governance frame, we continue to exercise prudent capital deployment, strict capital discipline aligning investments with our strategic priorities and applying strong business case rigor. Finally, cash flow remains a central focus of our value creation strategy. We are actively implementing initiatives to enhance cash generation across the business from disciplined capital allocation, optimizing working capital, cost control and optimization remain top priorities, managing discretionary spend, leveraging automation and driving synergies. We are committed to a strong balance sheet and healthy cash flows, supported by targeted working capital initiatives and disciplined investments to drive sustainable growth. Lastly, I would like to thank all of our teams at SES for their hard work and precision through a complex integration.

With this, I'd like to hand it back to Adel for his closing remarks.

Thank you, Lisa. On Page 18, I'd like to set our company's full year 2025 outlook on a reported basis with Intelsat fully consolidated from 17th of July 2025. Based on our solid first 9 months results, and at an assumed average euro versus U.S. dollar exchange of 1.12 for the full year 2025, we expect the following: revenue to be in the range of EUR 2.6 billion to EUR 2.7 billion; adjusted EBITDA to be in the range of EUR 1.17 billion to EUR 1.21 billion; capital expenditures to be in the range of EUR 600 million to EUR 700 million. This is due -- this is reduced from our previous communicated 2025 CapEx guidance of around EUR 1 billion for the combined company on a full 12-month basis, and it's comparable to around EUR 800 million to EUR 900 million on a reported basis.

Also in light of FCC's recent press release with regards to the key bank process it's worth adding that we're now with our combined asset base even better positioned to continue working collaboratively with the commission and our customers throughout the upper band process. The draft notice of proposed rule making, also is known as NPRM will see comments on a range of options, including auctioning up to 180 megahertz of the upper spectrum and is scheduled to vote at the next open question meeting on 20th of November. The one big beautiful bill requires the FCC to complete a system of competitive bidding for at least 100 megahertz in the upper sea band no later than July 2025.

I would like to conclude our presentation today with Page #19, highlighting some of the key takeaways. This year, 2025 is very much about laying the foundation for the new company. It's also a period of transformation and transition of the 2 companies with quite different systems and scopes coming together. 2025 is all about getting the basics right. Next year, integration activities will continue as we tackle enterprise systems and processes, focus on optimizing our structure, driving operational efficiency and excellence and, of course, delivering the synergies. Our near-term priorities are clear: integrate the SES execute synergies, delever, focus on innovation and multi-orbit solutions, operational excellence and disciplined capital allocation. Our key management objective remains to drive profitable growth. To achieve this goal, we are rationalizing our portfolio and allocated capacity and resources in a disciplined manner into businesses that are aligned with SES's strategy and provide us with the best returns. We are on an exciting journey, building a leader in space. As we move forward together, will provide greater clarity and insight into the combined potential of the new SES with our full year 2025 results.

With this, we're now ready to take your questions. Operator, please open up the floor.

[Operator Instructions] The first question comes from Paul Sidney from Berenberg.

I have 2 questions, please. Firstly, just following up on the Q3 EBITDA headwind remarks that you made during the presentation. Could you expand on our profitability expectations for the second half of this year have changed since the Q2 results compared to previous stand-alone expectations of SES and Intelsat and maybe try and quantify these headwinds for us, please? And then secondly, looking beyond 2025 with reference to the new '25 guidance, are the medium-term targets for the combined revenue growth and EBITDA growth targets? Are they still relevant, i.e., SES just resetting to a lower 2025 starting point, but when the synergies come through, we can expect those growth rates to still be very much relevant to the business?

Yes. Thanks, Paul, for the question. So let me first start off then with talking a little bit more about Q3 EBITDA and then also what to expect going into Q4. So if we think about what the combined company looks like we had always expected that the Intelsat combination would have a lower EBITDA performance in the second half, and that's really attributed to some of the things that we we had already known. So the first is in the aviation business, the electronically steered antennas, they're effectively at cost. We're installing a significant number of those antennas we started in Q3. So you can almost expect that we didn't have that at this time last year. They're all being installed in Q3, and then that ramp is even going to occur even further in Q4. So those are at cost. And then when you start to see those aircraft go into service, that's when you're going to see more meaningful EBITDA performance out of the Aviation Group, which you can expect then into 2026. But in terms of aviation and how to think about that, you are going to see the headwinds going into Q4.

The second thing is on the Intelsat side, the IS-33 satellite failure did occur at the exact same time last year. So while the company did a great job retaining almost 90% of their customers, they did so through the use of third-party capacity. So you're seeing a lot of that headwind occur throughout the second half as well. And then just to kind of follow up on what Adel had mentioned with respect to our government. The U.S. government is a very good profitable customer for us. But with timing delays, we are seeing certain awards and renewals push out into 2026. We may see a little bit of pick up in Q4 with the U.S. government, but it really depends a little bit about when the government shut down and resolve itself. So those are kind of the major things to think about in terms of Q3, Q4.

On the exchange rate topic, we're kind of planning with an exchange rate of 1.16 when you think about the fourth quarter. Obviously, we've had quite a bit of headwind with the weakened U.S. dollar. The other thing, I think, just kind of when we look at how we're putting these 2 companies together, we do have U.S. GAAP to IFRS conversion. That has started to filter through some of the results I do want to make sure that you're all cautioned that the guidance that we've given and the results to date do not include the effects of purchase price accounting. So we'll be going through those -- that activity throughout the fourth quarter. We hope to have the majority of those impacts included in the results for the full year. We've got intercompany eliminations. We did report on that in the F4 filings. They're more or less holding constant with what we had expected. But that just gives you a little bit of a flavor on Q3.

On your second question related to the medium-term targets. I'll start off and then Adel can fill in. We're in the middle right now of going through our planning cycle. We're about got, we're almost 4 months into this acquisition. We've spent a lot of our initial time focused on synergies, and that's been related to a lot of head count actions that we've had to take. We've been combining the 2 plants. We have been converting accounting standards. So we're putting those plans together right now, and we're looking forward to communicating as early as we can at the start of 2026 on the updated the term guidance.

Thank you, Lisa. Just a little bit more on beyond 2025. There's nothing today that would change our perspective on this business going forward. The portfolio is well balanced. We have growth businesses. We have some businesses that do have structural decline, but generate a lot of cash, and we have a business that is facing quite significant competition. But all of that is known to us. This is -- none of it is new, right? We all knew that. We understood it. Our portfolio was very similar on a stand-alone basis. So there is nothing on a go-forward basis that would be different from our earlier assumptions and how the profile -- growth profile of the business should be. I hope that answers all your questions.

Yes. So we're looking at the longer we look forward and shape of how the business progresses hasn't changed, but clearly headwinds that we brought into 2025. Is that a good summary? .

That's a good summary.

Yes, that's a good summary.

The next question comes from Terence Tsui from Morgan Stanley.

Just wanted to explore the previous topic in a bit more detail just around the financial performance -- so when I look at the guidance published today, it implies a pro forma EBITDA, i.e., if SES owned Intelsat since the start of 2025 of around EUR 1.5 billion of 2025 compared to EBITDA of EUR 1.8 billion delivered in 2024. Is the deterioration of EUR 300 million or use these near-term headwinds that you just mentioned in your previous answer? Or is there something else going on? And then I just wanted to ask briefly around Iris Square. A quick update on that topic would be great, especially as we're nearing the 1-year anniversary. Are you happy with the process so far? And given the geopolitical tensions, do you see any scope for adjustments to the existing agreement?

Yes. Sure. I'll start off with the guidance. And then your second question on Iris Square, Adel has a lot more of what's happening there. So on the guidance side, on a like-for-like basis, you're right that at the upper end of that guide would be $1.5 billion on a like-for-like basis for adjusted EBITDA that is down from the prior year. If we look at what the stand-alone guidance was, the guidance that legacy Intelsat had given out into the market did indicate there would be close to a double-digit decline in EBITDA. So we're starting from that basis. We did discuss the headwinds, so I don't want to repeat those. On the government side is largely timing. The one thing I would just add to the commentary that we gave in the last answer is related to the fixed data business. So that business is more challenged than what we had expected. But as we did say in our prepared remarks, we are really fatiguing that business. We're prioritizing where we're going to take deals and we're starting to incorporate a lot more rigor into the bid process that we have here at the new SES.

And the same dynamics apply, right, to the full year guidance. So there's nothing else new in there besides what we shared with you, right? So just works itself through to the end of the year. also intercompany eliminations and exchange rate changes and all those things are things that -- some of them we knew very, very well and they're within the bound, which is kind of where we thought they'd be. So that's all in terms of that terrace. And then on Iris Square, look, the program is in full swing. I actually spent today -- yesterday at the commission, the European Commission met with a commissioner of the defense, states in defense and there were a forum that talks about European communities determination to build European sovereign an capabilities. And I was squarely at the core of that. because there is a huge commitment behind it. We're working through all of the engineering activities that are required to get us now [indiscernible] to make the final decision, how do we foresee that are we able to meet the specifications, the timing, the budgets and all that stuff as planned, right? So that's progressing very, very well. And the commitment from Europe remains very, very strong. to make sure that, that program continues going forward. So that's -- I think that's the update. Is that -- Terrence, is that helpful?

That's great.

The next question comes from Ben Rickett from New Street Research.

I had to two, please. Firstly, so leverage is obviously a bit higher than you'd initially expected following the transaction plan. I just wanted to check, are you still committed to staying investment grade and what sort of options could you look at if you didn't delever naturally as quickly as you had expected? And then second question is just around the C-band process. And specifically, I was interested in what tax rate you're expecting to pay on any incentive proceeds from the C-band and the extent to which you can use the tax losses.

All right. Yes. So on the leverage -- so we're very committed to delevering. That is our -- one of our primary pillars of our financial policy. So we're very committed to that. Again, as we're kind of turning through the process of putting together our 2 plan, which we will share at the beginning of next year, I'll be able to give more concrete guidance on how we're thinking about the debt maturity profile and deleveraging. Right now, if all things are unchanged, we will pay back what to do in Q4 of 2025 with existing cash. So this table more of that discussion until we get through the 2026 planning cycle. With respect to the C-band process, Adel, do you want to give an update on that?

Yes. Look, just to add on that one. Clearly, as a company, and as always, we've always had other measures that we always look at, right, to make sure that we have back up to the fact we're a space company. So we're used to having backup to the backup to the backup. Those things don't -- you don't disclose them publicly, but we're very confident of where we are, right? So as Lisa said, right, there's good confidence in all liquidity and what we'll be able to do going forward. And it's a priority, delivering is a priority for us for sure. Look, on C-band, well, good news, right? I mean, overall, we're working hard with our clients number one, make sure that we have solutions for our clients as we progress through the clearings. And clearly, the ambition of FCC is very, very clear. Now regarding what the tax rate, I'm going to let the IR team get with you then just individually and walk through it. But you got to keep in mind, we have a lot of molds, tax mills and a lot of tax assets that we have in this company that is hugely valuable for us as a company. But let's not speculate and talk about them here publicly, we can follow up with any analysts that would like to get a better understanding of what these rate may look like.

Okay. And just -- sorry, just to follow up on the first question. So, I mean, you're not necessarily committed to remaining investment grade.

We're committed to delevering, and we're committed to the -- to -- our objective is to remain consistent with the financial policy that we have laid out. But again, we have to work through the process of going through our 2026 plan. We are -- there's a lot of initiatives that we also have on the table that we're actively working. So for example, working capital management, thinking through rationalization of our existing CapEx profile so that we can funnel the money that we have allocated over to lower-cost new space initiatives that we think are going to help [indiscernible] our growth going into the future. So it's really hard to give you a concrete answer on anything with respect to how we're trying to concretely get to numbers in 2026 at this point in time. That's just to give you a little bit of flavor of what we're doing.

Yes. And Lisa, just to add to that, Ben. I mean, I know you want just a black and white answer. So the fact that we're focused on delivering that tells you a lot. There are many other factors that we don't control of what the creative agencies do. So very hard for us to say how do we get there, right? But we are exactly on the same plan we were before. We got to get to the 3.0 and below. And that's what we're working towards, right? And we -- as Lisa explained it and I explained it, there are multiple levers that we have in the company in addition to operational weather and operational cash generation that this company is awful.

The next question comes from Roshan Ranjit from Deutsche Bank.

I've got 3 questions, please, and then broadly touching on earlier topics. I know you mentioned the ESA revenues, and I appreciate that that whilst they are lumpy, we have seen a slowdown in the, I guess, aviation growth rate this quarter on a like-for-like basis versus Q2. Now this is in the context of, I guess, capacity ramping up on mPOWER 7 and 8. So are you seeing new contracts coming through as that capacity is ramping up? And I guess, 9 and 10 has been launched. How should we expect the ramp-up of that capacity and I guess, contracts coming through in the coming quarters? Secondly, I guess, more on the margin side, the third-party capacity being used because of IS-33. When can we expect that the party capacity to move on to essentially on-net when more that will wash out? And just quickly on the CapEx or material reduction in the '25 outlook. Is that coming from savings? Or is that a timing effect and we should expect kind of that delta to be spread out over the next couple of years?

Roshan, just the last question was about CapEx, right? Why is the CapEx reduced, right?

Exactly. If it's a push out or if it's a driver of the synergies, yes?

Yes. Very good. Look, let me start, and then Lisa will complement as we look forward. Look, first of all, on a like-for-like basis, our era business is growing double digit. So it has not slowed down, right? And it's significant double-digit growth. And actually, we will see that ramp in revenue driven by the equipment continue in the fourth quarter. And as Lisa explained, I mean this is all leading to the services revenue that is going to be accelerated going forward. And this was in our press release. So now our first release, you see that the third quarter like-for-like growth in aviation is 36.3% growth year-on-year, right? So it has not slowed down. It's accelerated actually this year. Now that will slow down in the beginning of the year despite the fact we do have 1,000 tails orders to transition to their terminals, but they are spread, but in Aviation, it's a quite delicate planning process, right, to getting planes out of service and making sure we do them in the maintenance windows, et cetera. But it will be spread more than what it is concentrated this year because the last up really happened in the third quarter that was a little bit in the beginning of first half of the year. Fourth quarter, as Lisa said, is a major ramp up, especially with American went with them really eager to get to the WiFi offerings in the beginning of next year.

Now remember your question related to 9 and 10 coming into service. Today, it's very limited usage of NEO in the aero business. In the future, we expect to be a game changer when we with NEO and aero. I mean there's a little bit of NEO usage in 1 of the Middle East Asia Pacific Airlines, we will be announcing that quite soon. They're going live very, very quickly, and they love it. It's a game changer on the difference between a LEO or MEO on an airplane. And by the way, they're using standard antennas, right? So not even an optimized intent for me, which our goal is to have an optimized antenna that is easy to install, that's cheaper than what we have today on airlines as our MEO capabilities.

Now on the magnet capacity, which benefits government benefits our maritime business, that is expected to go into use by beginning of 2026. So 2 sell labs have been launched. They're making their way to their or bit. There is some other testing that needs to be done essentially beginning of 2026, that's where the capacity comes on board. And then we have 3 other satellites that we'll be launching in 2026 to get us to 3x of the capacity we have, right? And that capacity comes into service in 2027. So that's all progressing and look, we -- when we have all these healthy satellites up, we will have a lot of other options to consider how do we configure that constellation because we will have a lot more flexibility to be able to drive at mPOWER. Constellation continues to be over subscribed today. Look on that third-party capacity for IS-33.

So first of all, the Intelsat team did a great job securing customers, right? Because those customers have long-term contract and long-term jevity in our business. It was important to secure them despite the fact that you cost dramatically goes up. We are working through figuring out how much of that per capacity we can move over to on fleet. Now our problem, of course, is it's not like we have dramatically excess capacity everywhere, right? That's our biggest shaft, right? We're quite highly utilized, including our geo satellites. So we're working through that. And that's the same -- that's going to be tough. I mean, Lisa talked about this discipline because we're going to be rationalizing what's the best return for our shareholders in using that capacity, and it means trade-offs. It's not easy as no, we have the cap. If we have capacity, we have not that already, right? Everything that we could have mobile. Now it's about rationalizing what's the better return for the company, when do we do it, how do we not lose trust with our customers as we transition some of that capacity. But that's all going to happen -- it's happening -- and during 2026, as other contracts come to an end, we'll be able to rationalize it. I have no doubt we will manage that throughout 2026, beginning of 2027.

And then the final question on reduction of 2025 CapEx. Look, this is the benefit. A big part of it is the benefit of this integrated company. Now for example, we decided we're not going to go for some of the satellite replacements. We were able to move some of the satellites to pick up some of the loads in areas where it was highly utilized. So the result of that is not just delays of CapEx. It's actually rationalize. There were some delays, but it's not material if you look at an overall CapEx envelope. And part of it was not only saying, well, there was an overlap. Part of it was our decision to say, "We're not going to do that?" It doesn't have the return that we would like to do. Our teams would like to do it, but we said, look, let's rationale like the business case and came back to the conclusion not a good capital deployment approach for us. So that's how it kind of come together. Hopefully, we answered your question. Lisa, anything to add to that?

No. Maybe the only thing to just add is we're continuing to look at the CapEx. We've already taken decisions to stop some things. So I think we're in good shape with where we're at with our integration process.

That's great. And I'm sorry, I should have clarified. When I said so I mean slow down versus the growth rate in Q2 as you said, 36% growth aviation in Q3 like-for-like. But my point was it was a slight slowdown versus 45% in Q2 despite the ESA terminal installs, yes. .

No. So a very good comment. I mean, look, part of it also is what we mentioned is we did lose some airlines, right? So we're winning and we're losing a the balance is still quite good in our favor, right? So that's just part of the offboarding and onboarding timing differences and all that. That's why you see those dynamics change a little bit. But still quite healthy growth, right, if you look at it.

The next question comes from Nick Dempsey from Barclays.

I've got 3 left. So first of all, just on that coming back to that midterm guidance point, will you give us numerical midterm guidance for revenue and adjusted EBITDA growth in February at your full year '24 results? The first question. Second question, am I right in calculating that at the midpoint of your adjusted EBITDA guidance, you will be roughly on track to be at about 4.0x net debt to EBITDA at the end of this year, including leases and including only 50% of the hybrid and perpetuals the way you're showing it today. And the third question, inside that combined constant FX growth of minus 19.5% for fixed and maritime, did you see cruise revenue showing positive year-on-year growth? You've got more capacity coming through from mPOWER there as the demand in cruise. So did cruise grow within that and flying the rest was down quite a lot. .

Yes. So I'll take the first question on the midterm guidance. So at the start of next year, we'll certainly give quantitative guidance for 2026, and I think it's very fair to assume that we'll give ranges of the updated midterm at that point. In terms of the net leverage and how we see that towards the end of the year. Again, a lot of it depends on still working through a little bit of the planning, but also from a cash flow perspective, there's things that we can do. So it's hard for me to speculate right now for you where we're going to land on that leverage by the end of this particular year. But again, we're doing everything that we can to control cash going out the door, accelerate cash payments coming in and all the working capital things that you would -- you would expect.

And paying down debt, right, we're going to be paying significant amount in fourth quarter. So it's too early, Nick, to look at it. Look, let me take the last question and then see if we can -- we have answered it. So look, cruise continues to be quite stable for us. I mean, there are some noise in the numbers include because you remember, we have [indiscernible] revenue both in 2023 and 2024. So that compares are 2024 and 2025, I have to say, right? So compares are a little bit did. But on a stable basis, if you look at our ships and what we have and who we serve that is quite stable. I mean there was a big transition for a very large customer that just came across, right, and put a bunch of stuff. We have new vessels that we're winning. When you look at the build profile of the vessels, we continue to win much more than out their share from investors. So it just proves you the customers want to have multi-orbit on the ships, right? They have Leo-capable solutions starting because a very, very strong competitor there. But our value proposition continues to resonate with these guys, right? And they continue to extend contracts with us. As I said, 2 major cruise lines just extended contracts with us just last quarter going forward. So it remains at a very stable business.

Look, the problem we have, Nick, and I've talked about this multiple times, if I can give more big about to our key guys, they will consume it. They will consume, right? So we're eagerly waiting for 2026. And when we get the additional capacity, we're looking at can we optimize the network even further to be able to get -- because it's not lack of demand. It is really our optimization of where the capacity is being used. And as I said, we have a big government customer base across the world that want a lot of that capacity and have booked a lot of that meal capacity. And it's a trial for us, right? How do you optimize it without losing customer confidence and trust because we are a trusted partner. When we provide a solution to our customers, they can count on us so it's not so easy for us to just move stuff around. But it remains quite stable and the growth is going to come when we give them more capacity. Okay, Nick? Does that answer your question?

Yes. Yes.

The next question comes from Aleksander Peterc from Bernstein.

I have a few. The first one will be on the actual momentum. When I look at your year-on-year margin evolution in EBITDA for the pro forma entity. I see a 3% decline in Q1, Q2, and then that deepened to 7% in Q3. And at guidance midpoint, your implied Q4 is down 10.5 percentage points on the margin run. So I'd just like to understand, if I understand correctly, that you're going to be at roughly 38% EBITDA margin in the fourth quarter. And I'd like to understand if this is the -- what point of the year and then metal improve from here? And one should we assume that this negative trend should stop now. And I think it would be helpful if you quantify those one-off in the current quarter. The things that you outlined on Slide 12, all of those negative elements, how much are they contributing to this margin erosion? And I have a couple follow-ups.

Okay, Lisa, you want me to start and then you...

Yes, yes, go for it.

Look, so you're a tender or else, you're absolutely right. The headwinds that we talked about I'm not going to repeat that, right? These are the headwinds that are contributing to that margin impact. They are not whatever heads, right? So for example, our -- the content of the equipment -- there's a large portion -- large content of the revenue is the equipment this year. By the way, not only in aviation, we also have equipment sales that a lot of our customers, big customers are buying the equipment that they need in order to turn up and light up some of the capacity that they bought for us that are already paying for it. But they need the equipment in order to do it. So that is -- it happens to us as it's a forecast of the future profitable revenue basis, right? If you have a lot of equipment, it means that you are getting new customers on board and they are going to be using. And that acceleration in the year, right? So it started letting up in the first half of the year, it's accelerating second quarter in the third quarter. And for the quarter will be a high volume of that equipment. So especially in aviation, plus some of the eliminations that we talked about, that have an impact. IS-33e, you have the full impact of IS-33e in the fourth quarter, if you look at it year-on-year, but when we had to go and get the third capacity. So that in 2026 is not going to have the same profile. It will come down. That equipment sales will come down. And by the way, again, it's not that we're avoiding equipment sales. We actually like those equipment sales because we're very particular and very disciplined. We don't do equipment tests for the sake of [indiscernible] sales. We're doing equipment sales to turn on the volume on very high profitable capacity solutions that the customers are looking for. So that's -- I can't -- maybe, Lisa, you can comment -- I can't make the math on the call on how many points it is and where do we end up with a margin overall. But you can see, maybe, Lisa, you can add something to it or...

Yes. So I think there's a bit of a mix effect happening in the fourth quarter. So if you look on a like-for-like basis, which luckily the fourth quarter is going to be you're going to have a lot of revenue growth that's coming from 0 to low-margin activities, primarily in aviation, which we just talked about. So the ESA installations, the kits are probably if you want to quantify that, it's probably 30% more installs coming in the fourth quarter than what we saw in the third quarter. And then on the government side, a lot of our higher-margin business is pushing out to the right, and that's just mainly due to timing effects that we're seeing on the U.S. side, and that's being supplemented by revenue that more on the NATO and the European side, we do have some contracts that have a bit of lumpiness as their percent complete type of contracts, and we're seeing of those materials and subcontractors coming into the fourth quarter at very, very low margins. So that's what's driving the revenue growth in -- from Q3 into Q4 because you will see that there's a bit of growth on a pro forma basis. And then on the EBITDA, again, it is largely being driven by the mix effect on the government side and on the ESA terminals. And you can -- you want to quantify the ESA, you said you can think about that EUR 6 million to EUR 10 million.

Okay. Okay. That's very helpful. So on the base of what you just said, will we see, therefore, next year, a headwind from lower equipment sales because they're so high in the current year. And if I math is right, you have your flat for revenue year-on-year in the fourth quarter at the midpoint of your guidance. So -- but this includes a lot of moment sales. So as we go into 2026, you're going to see probably a haven from that. So will we actually be able to grow next year like-for-like [indiscernible].

So Alex, you're asking us to do a forecast for next year already, right? Look, we will give full guidance for 2026 and even beyond when we when we sit down with all of you guys in February, right? But I'd say one thing, right? So clearly, the equipment profile will change, right, both for aviation but also for the government. It's not means he equipment. It will be other contracts we're signing that we're competing for that will drive early revenues driven by equipment and some of them have better margin than others, followed by a high-margin revenue business when we get to the solution and turn on the capacity and deliver the services. But as I said earlier, nothing has changed today that would change our view of the company going forward. Nothing's changed, right? So therefore, we are prioritizing growth right? But with a disciplined approach, it's not revenue growth, we're prioritizing profitable growth going forward. And we continue to see the business that way, right? We haven't changed our view on this business despite some of these adjustments that we have to make in 2025 based on what you heard. That's as much as I can say right now without giving you more forward-looking forecast, which will come in February 2026. I apologize, I would I can't be more precise, but hopefully understand where we are.

Yes. Just -- yes, can I just have a quick follow-up on the C-Band. Are you striving towards a higher than 100 megahertz transaction there because that will be obviously our strong interest given that there's no CDRs on anything above 100 megahertz? Can you go to 118?

Excellent. now I remember conversations we had with you guys the year before, we talked about 100 and how the CDR plays in. And you -- Alex, you're absolutely right, the CDRs only applies person. Look, it's very clear the FCC wants to do more, right? It's clear, right? I mean you see the releases, press releases and we're in the middle of it. I do expect all the cards tell you that will be more than 100 megahertz. But it's very hard to predict. By the way, you don't have to wait that long anymore because it's the ruling should come out on the 20th of...

November.

It's at 10 days from now, like a little bit more 2 weeks from that, right? And so off. So that is really good news for us, right, and for our investors at the end of the day, right? So that's where it is, and we'll see we're -- like I said, given the scale that this company has and the usage we have of the C-band, we are really opposition, right? And not only what position would the FCC and the commission and help them a compass what they're trying to do, but also with our customers because we have a much bigger scale network that we can think of solutions that to keep the customers and not lose them as we clear that an going forward, and that's really good news, Alex, for us. So I will look at that, right? And then you'll see the news coming in and will all then reflect when we talk to you guys in February.

Thank you, Alex. Operator, we've got to -- operator, we've got time for one final question, which is in the line there.

The final question comes from Stéphane Beyazian ODDO BHF.

Yes. I've got 3 follow-ups, if that's possible. Just on the spectrum clearance on which you spent some time recently. Can you tell us a little more on the difficulties, how long that could take and what could be the associated costs? I understand it's pretty early, would that be interesting to have your views on that. Second follow-up on Iris Square. I was just wondering if you think the final plans will be very much in line with the initial plan. I'm talking about the total cost of the project and the capacity, which looks relatively small in total, in my opinion, when it was announced. And finally, just a follow-up on the airline contracts, I was just wondering if there is anything you can share on the economics of the contract from an airline point of view, how your pricing is comparing, for instance, to starting is the pricing flat per aircraft or quite volume based? Anything could be interesting there on the economics.

Very good. Thank you, Stéphane. Look, I don't want to get ahead of myself here on the clearing, right, on how long it will take. You can use the proxy of the prior leadership we have, right, and so on. But it's not years and years, right? I mean -- and we recommended a certain approach to FCC that I'm not able to share until FCC decides to publish it themselves, where it could be accelerated, right, and moved quite fast. But this is actually see the search of it. I mean they at the end will set the pace on where we do -- we know the technical requirements and what it takes to do it. And the more you do, the longer it takes, right, which is not so such a bad news.

In terms of cost, to be very clear, we expect full cost reimbursement. There is no cost that we will have to cover without FCC covering the cost. And of course, we also expect that the rules will be very similar to the prior clearance, i.e. how the financials were set up for the clients. Look, on the Iris Square, as I said, that's on, we're right in the middle of it, right? And we have a budget that we shared with the market in terms of what our investment is going to be. We have not changed it, and that is our ceiling. We're not thinking of going beyond that. the question we're all trying to solve for is do we still get the return that we require in order to make this an accretive project. And that's what we're working, and it's too early to speculate, whether or not it does not meet our requirements, financial requirements, we will make the right decision for our pay and for our shareholders. And our customer knows that, right? They know the importance -- this is a private public partnership. So everybody understands and clarity what is expected. We know what the customer wants. They know what we need to do. in order to be able to deliver. So we have a little bit of patience as we get through it. But you got to keep in mind, I mean, we announced, Stephane, I didn't measure it this time because I want to major on this discussion in February. We announced our ambitions for the next generation year right now in the tire show and we call it near steer, which is the next generation of our media capabilities that we desperately need as we go forward. Iris is absolutely part of that. It's the foundation of that near peer. It's not another project, right? It's the beginning of the nester, if you will, the core elements of NEO sphere as we scale it and we grow it. So for us, we have a very clear plan as a company, how we're going to do NEO sphere going forward. And the objective is to make -- as a component of that, a foundation of it, but it has to meet certain criteria for us to make it work. So that's what we're working on.

And by the way, it's important and significant in the future. It's not a rounding error. I'm not talking about the capital investment required. I'm talking about the revenue upside. We want to bring a massive meal network into airlines, exchanges the gain of the airlines. The governments desperately want us to keep scaling that network. We want to bring much more capacity into the government business. So it is a significant opportunity for us as we go forward. But we must do it right right in order to have the right capital returns. And look, on the airlines -- and we can take that off-line. One of the biggest differentiators we have as a business is our flexible business models. We can do it per plane. We can do it for seat, we can do great usage. And the customers love that. That is a differentiator. And we have a very strict guidance on how we do the mechanics and how does the business case work et cetera. But it's very flexible for the customer adoption. So customers, some customers want to pay for investment upfront. Others want to recoup it over time, right, and et cetera. So each business model is adapting to what the customer needs are and as they adopt the WiFi solution on the plan, which, as I said, makes it differentiating from our competition.

Interesting just a follow-up can you hear me?

We can.

Yes. And just to follow up on that, in general, in the recent contract, the aircraft preferred pricing per seat per usage of aircraft in general.

It's very, Stephane. It's interestingly, it's theirs. Customers who have experience with WiFi and have enough capital capability to do it, they want to pay a lot of things upfront. Customers who are experimenting and rolling out for the first time, they want to see it based on passenger usage. And for us, it works, right? And in both all of these variations, they work for us and so on. So it really is different and it's not one dominating versus the other.

There are no questions at this time, so I hand the conference back to Christian for any closing remarks.

Thank you so much, Gaya, and really thank you to everyone joining this call. I hope you found these answers helpful to assess in the Q3 9-month results. Any follow-up questions, please contact Investor Relations at any time we're here to help. Thank you so much, and have a good day.

Thank you everybody.

Thanks for participating to today's call. You may now disconnect.

Welcome to the SES half year 2025 conference call. My name is Alan and I'll be your coordinator for today's event. Please note, this call is being recorded. [Operator Instructions] I will now hand you over to your host, Christian Kern, Head of Investors Relations, to begin today's conference. Thank you.

Thank you, Alan. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES' first half 2025 results call on behalf of our management teams. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document has been prepared under International Financial Reporting Standards.

As usual, this presentation may contain announcements that constitute forward-looking statements which are no guarantees for future business performance and involve risks as well as uncertainties, as certain results may materially differ from those in these forward-looking statements due to several factors, we invite you to read the detailed disclaimer on page 2 of the presentation, which is also available on our company webpage.

Today I'm joined by our CEO, Adel Al-Saleh, and our recently appointed CFO, Lisa Pataki, who will take you through the presentation, followed by a Q&A session. Adel, without further ado, over to you.

Great. Thank you, Christian. Good morning, everyone. I will start the presentation with the closing of the transformational Intelsat acquisition on page number 4. We're all excited to have reached this pivotal moment for SES. On 17th of July, we closed the acquisition of Intelsat and brought together 2 very strong satellite players, creating a global multi-orbit connectivity powerhouse. This is a compelling value-accretive acquisition focused on the future with significant and readily executable synergies from day 1 of closing with 60% of revenue in high-demand growth segments. This transaction combines complimentary assets, capabilities, and innovations to deliver world class solutions to our customers anywhere in the world. Overall, it accelerates the company's profitable growth outlook and cashflow generation over the medium term.

On page number 5, we show the combined strength of SES and Intelsat. We now operate a powerful fleet of around 120 state-of-the-art geo and neo satellites in a multi-orbit multi-band network supported by an extensive ground network covering 99% of the world's populated region. In combination with strategic access to LEO satellites, this unmatched scale and flexibility positions us to accelerate profitable growth, delivering a unified solution that meets our customers' most demanding connectivity needs.

Moving to Page 6, you see our stronger combined financial profile, with pro forma financial year 2024 revenue of EUR 3.7 billion, adjusted EBITDA of EUR 1.8 billion and adjusted EBITDA less CapEx of close to EUR 1 billion. Following the acquisition, the combined top line has almost doubled, establishing a more robust financial foundation for SES. This stronger financial profile is supported by a combined contract backlog exceeding EUR 8 billion, providing visibility into future revenue streams with 60% of the combined revenue in growing network segment, driving top line expansion, and strengthening our position as top tier player.

We expect the combined company to grow adjusted free cash flow before IRIS2 to over EUR 1 billion by 2027-2028, and to deliver significant value for our shareholders. We'll remain committed to investment-grade metrics as we target to reduce net leverage below 3x within 12 to 18 months after the deal closing. This robust combined financial profile gives us the opportunity to grow the business, invest in innovation, maintain our investment-grade metrics, and deliver attractive returns to shareholders.

On Page 7, a reminder, our synergy plan is strong and we're highly confident about our execution plans, which were well underway. We have identified total savings with an NPV of EUR 2.4 billion. We're on track to achieve 70% of these synergies equivalent to a EUR 260 million annual run rate by the end of the third year after the acquisition. The total synergies include EUR 210 million in OpEx and EUR 160 million in CapEx, clearly demonstrating the powerful value creation potential of this acquisition.

On Page 8, as we're creating a stronger multi-orbit operator, we're becoming the leading force in a fast-moving multi-orbit satcom landscape. Together, SES and Intelsat, bring end-to-end solutions, cost efficiency and unmatched global coverage, meeting market demand just what keeps going. However, this deal is not just about scale, it's about shaping the future of global connectivity. I would like to remind you of our growing segments where we're the combined company operate and drive cash flow generation. Together, we support over 60 government organizations, including European governments and U.S. government. We're all well positioned to tackle the sovereign capabilities governments now demand with multi-orbit network.

The newly announced GovSat-2 IRIS2 program and the NGS agreement with NATO, a great example for our strong capabilities serving increasing government demands. As media evolves, satellite broadcasting remains the most cost efficient and reliable way to reach global audiences. Together, we deliver over 9,500 channels to nearly 2 billion viewers worldwide. With continued strong demand for live sports and events. In both Mobility segments, maritime and aviation, our combined assets are uniquely positioned for continued growth for our delivery of seamless multi-orbit end-to-end solutions.

We are serving 5 of the 6 major cruise lines at sea and delivering in-flight Internet to 30 commercial airlines partners in the skies. In Fixed Data we also play an important role serving 8 of the world's 10 top mobile network operators and multiple of energy companies across the world. We're creating a stronger, more agile, more competitive SES, one built to lead across orbits, across markets and across technologies.

Moving to page number 9, let me introduce you to the new leadership team of the combined company. I'm proud that we have established a united leadership team that brings together powerful mix of talented people, the best of both SES and Intelsat, strong, international and best-in-class experiences. With clear strategic focus and deep operational expertise, this new leadership is poised to execute on our vision, drive integration and unlock the full value of the combined company.

I would also like to take the opportunity to thank our outgoing CFO, Sandeep Jalan, for his steadfast leadership over the last 5 years. We're pleased to welcome our recently appointed CFO, Lisa Pataki, who's here with me. Lisa has an extensive experience in the aerospace and defense ecosystem and has completed several successful M&A finance integrations. Moreover, her ability to develop financial strategies that prioritize operational focus, efficiency and profitable investment will strengthen SES' leadership team, helping SES achieve our mission of being a leading satellite player. Lisa and I look forward to meeting with many of you over the next few months to discuss our business opportunities and to update you on the exciting journey ahead of SES.

On page number 10, we are reaffirming our growth outlook for the combined company on the basis of the unchanged proforma full year 2024 financials. The combined company is strategically well positioned to offer comprehensive end-to-end solutions in high-value high-growth markets, and as such we reiterate our guidance. For the period of '24 to '28, we expect revenue growth of low- to mid-single digit CAGR and adjusted EBITDA growth of mid-single digit CAGR. We continue to disciplined investment approach in future growth with annual CapEx averaging EUR 600 million to EUR 650 million for 2025 through 2028. We expect these metrics to drive normalized adjusted free cash flow to over EUR 1 billion by 2027-2028 time frame before IRIS2.

Our focus is clear, to grow, to lead in high-potential markets and to shape the future of our industries. This is the long-term play and we're building with the future in mind, growing year after year, expanding our capabilities and creating lasting value for our customers and shareholders alike.

Now, let's move to discuss standalone SES business highlights for first half 2025 on the following slides. With the Intelsat closure on 17th of July, I'd like to remind you that 2Q, second quarter, is the last quarter of standalone SES performance, so this section of my presentation is dedicated to standalone SES performance, starting with page 12.

In the first half of 2025, we had a solid financial performance and are on track for our reaffirmed financial year 2025 outlook, underscoring that our evolved strategies delivering positive operational and financial results. O3b mPOWER is driving future growth with satellites 7 and 8 now in service and satellite 9 and 10 successfully launched on 22nd of July. We continue to see commercial momentum across Networks which demonstrate the growing demand for our differentiated service solutions.

Page 13 summarizes our solid first half 2025 financial performance. I'm proud to say the first half of the year produced a solid set of results with revenue stable year-on-year, reflecting strong operational execution led by Networks growth of 10.3% year-on-year, including some periodic revenues first quarter. First half 2025 adjusted EBITDA was also in line with our expectations of broadly stable year-on-year with a 53% margin. Adjusted EBITDA trends have been underpinned by solid top line growth to the Networks and nearly 5% reduction in controllable operating expenses as we continue to transform and drive operational excellence throughout the business. First half adjusted free cash flow was EUR 193 million, up EUR 47 million year-on-year, or 32% higher year-on-year, excluding restricted cash and special items. In first half 2025 we secured EUR 690 million of renewals and new customer contracts with the majority coming from our growth segments, supporting our growth backlog of EUR 4.2 billion, which had been impacted from the weakening of the U.S. dollar this period.

Our net leverage on the 30th of June stood at 1.1x before acquisition closing and includes EUR 4.3 billion of cash and cash equivalents. On the back of this solid first half performance, we are reiterating our financial year 2025 outlook, stabilizing our revenue and adjusted EBITDA trajectory.

On page 14, you see that we're deepening existing relationships and forging new partnerships with customers across our target markets as demand continues to grow for our unique high-value offerings. We're proud to be a trusted partner to customers worldwide. In the Government sector, due to the recent geopolitical shifts, we're starting to see increased demand as governments identify the need for more sovereign, secure connectivity. We have a robust pipeline of government opportunities supported by increased defense spending in Europe, including the development of a second satellite for GovSat-2 jointly with the Luxembourg government, which I'll expand on in a moment, as well as strong momentum with the U.S. government, including SES Space & Defense to provide hybrid space-based architecture to the U.S. Department of Defense to a secure, integrated, multi-orbit network branded SIMON.

These agreements strengthen secure, resilient and high performance connectivity for NATO members and U.S.-European command. Our strategic wins highlight our commitment to innovation and growth in the Government segment. We continue to progress the development of IRIS2 project ahead of 1W1 later this year or early next year. We're well positioned to help Europe build secure space-based connectivity system.

Our highly cash generative Media business is performing as expected, delivering in line with expectations. In first half 2025, we secured key wins including ATP Media, enabling global distribution of over 3,000 tennis matches to 1 billion fans. And Mileto in Brazil, a contract with growth potential to offset past capacity losses. SES continues to be a trusted partner to leading media companies such as Warner Brothers, Discovery, having just signed a long-term capacity agreement to deliver high quality content to millions of TV's users on 19.2 degrees East position, which is our most valued TV neighborhood in Europe. These successes highlight the continued relevance of the value of our satellite solutions for media partners worldwide.

In aero, we're seeing increased traction with our Open Orbits, including wins with Thai Airlines, Turkish Airline, and Uzbekistan Airlines. Wins like these are driving our future growth in aviation where our ability to deliver and manage multi-orbit solutions is a source of strength, anchoring our right to win in this competitive segment.

Our continued momentum in maritime, driven by strong demand from key customers like MSC, Princess and Virgin demonstrates our leadership in ocean ship segment. This success is powered by our end-to-end multi-orbit connectivity with managed MEO networks at the heart of the onboard passenger experience. SES completed the largest transition of cruise ships this quarter where we helped our customers move their services from GEO services to SES Cruise mPOWERED services. SES is redefining onboard experience with SES Cruise mPOWERED thanks to our real-time network optimization that dynamically synchronizes space and ground systems between multi-orbits, enabling cruise operators to maintain consistent and high quality connectivity at all times.

In Fixed Data, we're laying the groundwork for future growth through innovative partnerships like Lynk Global and direct-to-device, enabling new applications in remote access, emergency response, secure government communications, offshore operations, and automated automotive connectivity.

Moving on to the vertical performance, starting with Networks business on Page 15 where we're demonstrating our ability to win with our best-in-class solutions. Network grew 10.3% year-on-year and is now 60% of the total revenue and was driven by strong performance in Government and Mobility. Our Government vertical is showing strong growth, up by more than 17% year-on-year, driven by expansion in both the U.S. and global government businesses.

Our Mobility business is up close to 10% year-on-year with double digit growth in aviation, complemented by solid performance in maritime, including periodic revenue related to a contract modification of EUR 19 million in first quarter 2025, and also EUR 22 million in first quarter 2024.

Fixed Data remains the most competitive of our segments with minus 4% year-on-year, impacted by continued capacity constraints of our O3b mPOWER fleet which was prioritizing higher margin verticals. As we increase availability capacity on the mPOWER constellation, we expect Fixed Data to actually improve.

Finally, Networks' gross backlog stands at EUR 2.3 billion, also impacted by weaker dollar, having secured EUR 510 million of new business and renewals this quarter with a strong U.S. and global government pipeline. Our strong gross backlog on robust pipeline support our forecast and future growth, reflecting markets demand for our strategy and multi-orbit solutions as being essential to meeting evolving connectivity needs.

On Page 16, we dive a bit deeper into our largest Networks segment, the government. We're seeing a significant increase in government demand for secure resilient satellite connectivity, particularly in Europe where defense spending is increasing. Amid the ongoing geopolitical shifts and rising global tensions, we're seeing governments prioritizing sovereign capabilities on robust communications infrastructure. SES is well positioned to meet these needs with our proven multi-orbit solutions and growing track record of trusted partnerships of serving the U.S. government as well European and allied governments.

As such, you continue to see strong momentum from the U.S. government underpinned by our most recent announcement with the U.S. Department of Defense, where SES Space & Defense will provide hybrid space-based architecture to the U.S. Department of Defense to a secure, intelligent multi-orbit network. I mentioned that before, trademark assignment. This transformational approach using multiple orbits solves the tradeoff between affordability and resilience, delivering satcom agility, flexibility, and reliability for forward-deployed personnel.

Further, we're proud to have announced GovSat-2 just a few days ago. This latest announcement underscores the surging demand for sovereign capabilities in Europe. After the proven success of the GovSat-1 satellite, the Luxembourg government and SES are developing a second GovSat satellite dedicated to government application. This is a public-private partnership at a 50-50 joint venture between SES and Luxembourg that provides secure, reliable and accessible satellite communication services for governments. It will join GovSat-1 in supporting the Luxembourg Directorate of Defense, EU and NATO nations, as well as U.S. Department of Defense and other government users, reinforcing SES' position as a trusted partner for secure mission-critical government connectivity. This investment in GovSat-2 is in line with SES' financial policy and also in line with prior combined company CapEx guidance.

On Page 17, we're moving on to our highly cash-generative Media business. As expected, the Media business declined 12.1% year-on-year on the back of lower revenue in mature markets due to capacity optimization, SD channel switch-offs as well as the full Q2 quarter impact of the Brazilian customer bankruptcy. We have secured EUR 175 million of long-term renewals and new business, underscoring the significant cash flow generation of our video business and contributing to our gross backlog of EUR 1.9 billion, serving 362 million households worldwide. That's about 1 billion viewers. Our revenue and operational performance highlight the strong fundamentals and steady demand in our video business. We're expanding beyond capacity to offer integrated media services, adding our ground capabilities and managing more of the distribution chain to simplify operations for our customers as satellite TV remains the most cost-effective transmission method with continued strong demand for linear TV content and live sports and events.

On Page 18, we illustrate the deployment of our O3b mPOWER constellation, which extends our capabilities and supports our revenue growth, keeping pace with customer demand. O3b mPOWER satellites 7 and 8 are already delivering advanced high-performance connectivity to meet the evolving needs of our customers since May. I'm very excited that on the 22nd of July we successfully launched satellites 9 and 10 on an optimized launch schedule with a service entry expected at the start of 2026. This will further boost network capacity and resilience earlier than what we previously expected. The remaining satellites, 11 through 13, will be launched in 2026. The additional 3 O3b mPOWER satellites will bring up to a threefold increase in available capacity by 2027 when the entire O3b mPOWER constellation will be fully deployed, accelerating our profitable and long-term growth trajectory.

In 2027, we will manage a robust constellation of 7 healthy MEO satellites complemented by the initial 6 satellites. The scalability of our MEO network allows us to regularly add satellites incrementally, ensuring capacity growth aligns with customer demand while maintaining a balanced supply-demand ratio in CapEx-efficient manner. Each new satellite enhances the constellation, boosting overall capacity and network efficiency to support long-term profitable growth. IRIS2 is strategically timed to commence services by 2030, coinciding with mPOWER's steady-state operations. Together, they will meet growing demand well into the next decade. Additionally, the second GovSat satellite and IRIS2 will expand coverage beyond mPOWER's reach, unlocking new opportunities for MEO-based services in previously inaccessible regions, including seamless pole-to-pole coverage.

As part of our commitment to investing in innovation and shaping the future of SES, I'm excited that SES has signed a groundbreaking multi-launch agreement with Impulse Space to use their Helios kick stage launcher. This game-changing partnership will allow us to shorten the time required for the selected SES satellites to reach their final orbit position, launching satellites directly from LEO to MEO or GEO in just hours instead of months, cutting transfer times, extending satellite lifespan and accelerating service delivery to our customers. It is just another bold step in our strategy to lead through innovation and agility.

At SES, our integrated multi-orbit architecture is not just a technical achievement, it is a strategic advantage that delivers advanced performance, global reach and future-ready flexibility for our customers. We'll leverage full ownership economics in GEO and MEO, combined with the strategic partnerships in LEO and our vast ground network and terminals portfolio to provide high availability, unmatched resilience, network density and seamless interoperability across orbits.

With that, I'm now delighted to hand over to our new CFO, Lisa, to take you through more detailed financial highlights.

Thank you, Adel, and SES for the warm welcome. I'd also like to thank Sandeep for his support during our handover period. I'm excited to join SES at such a pivotal moment as the company accelerates its transformation and positions itself for long-term growth with a clear strategic vision. I am equally excited to lead a talented team of finance professionals. And together, we are well positioned to deliver on SES' ambitious goals.

Now let's turn to Page 20. We are pleased with our Q2 and first half 2025 financial performance, which is in line with our full year 2025 guidance and demonstrates our disciplined approach to execution. Revenue for SES was EUR 469 million in Q2 and EUR 978 million for the first half of 2025, more or less flat compared to the same period last year at constant foreign exchange rates. Revenue from the Media business declined by 13.6% in the second quarter and declined 12.1% for the first half. Media revenues contribute roughly 40% of the group revenue and are challenged by capacity optimization and discontinuation of standard definition channels. Furthermore, and as a reminder, SES recognized final revenue in 2024 and some in Q1 2025 related to a bankruptcy restructuring agreement of a Brazilian customer. In light of these headwinds, we anticipate the Media business revenue to decline at low double digits this year. As previously stated, we expect this trend to improve from 2026, returning to mid-single-digit declines.

In Networks, revenue growth more than offset Media's decline, achieving 12.5% growth in Q2 and 10.3% growth for the first half versus prior year. The Networks verticals account for close to 60% of the group revenue, ending Q2 with EUR 277 million and the first half with EUR 579 million in revenue. The Government and Mobility businesses continue to monetize opportunities and are expected to continue to headline the growth for the company going into the second half. Q2 2025 adjusted EBITDA was broadly stable, returning margins of 51.3%, dipping 40 basis points versus prior year. The first half adjusted EBITDA was EUR 521 million with 53.3% margin, declining 30 basis points compared to the first half of 2024.

These results are in line with our expectations. We expect full year adjusted EBITDA performance to be in line with our reiterated full year guidance, implying an adjusted EBITDA margin of 50% to 51%.

Now let's turn to Page 21 to take a more detailed view of the group's first half adjusted net profit. First half adjusted net profit amounted to EUR 77 million. As already discussed, adjusted EBITDA decreased EUR 4 million year-over-year, in line with our expectations and driven by mix as our Networks business outpaced our higher-margin Media business. We are pleased to report that our work to control the cost structure has reduced controllable operating expenses by EUR 12 million, representing a 4.9% decline year-over-year.

We continue to focus our efforts in the second half to right-size our cost structure and accelerate synergies related to the acquisition of Intelsat. Depreciation and amortization increased EUR 12 million compared to the same period last year as the new mPOWER and ASTRA 1P satellites entered service in the first half 2025. Net interest costs rose by EUR 6 million due to reduced interest income on the group's cash and cash equivalents. Tax and other expenses increased by EUR 12 million. Approximately half of this increase is attributed to foreign exchange losses resulting from the revaluation of the U.S. dollar. Finally, the EUR 63 million difference between adjusted and net reported profit is explained by significant special items, which include EUR 73 million impairment expense related to changes in future fleet deployment configuration and EUR 63 million other nonrecurring expenses related to M&A and restructuring activities. These charges are partially offset by EUR 49 million from the proceeds of SES' insurance claim in connection with first-generation mPOWER satellites and EUR 23 million of related net income tax benefits.

Turning to our financial position and balance sheet metrics on Page 22. We continue to hold a strong financial position. Our adjusted free cash flow for the first half of 2025 of EUR 193 million has increased 32% year-over-year, reflecting our strong operating cash flow performance. Note that our adjusted cash flow definition excludes any C-band reimbursements and significant special items such as the proceeds from the insurance claim.

Capital expenditures in the first half amounted to EUR 248 million, primarily driven by mPOWER satellite milestone achievements. We expect that the first half CapEx outflows will be higher than in the second half as cash outflows are not linear and are dependent on project milestones. This is in line with our full year guidance. In addition, I would like to discuss 2 noteworthy items related to the C-band and insurance claim proceeds. During the first half, we finalized our C-band reimbursement claim and have received approximately EUR 90 million, which is in line with our expectations. On the insurance claim for the first 4 mPOWER satellites, we continue to make good progress in our settlement discussions. To date, we have collected USD 58 million. We will provide updates as settlement negotiations develop.

With respect to cash returned to shareholders, SES continues to be sector-leading. We paid the final fiscal year 2024 interim dividend of EUR 0.25 per A-share and EUR 0.10 per B-share on April 17. In October 2025, SES will pay an interim dividend of EUR 0.25 per A-share and EUR 0.10 per B-share to shareholders. SES expects to maintain a stable to progressive dividend policy and pay a final dividend of at least the same amount per share class in April 2026, subject to shareholder approval.

Our net leverage was 1.1x as of the June 30 balance sheet date and prior to the closing of the Intelsat transaction. This includes EUR 4.3 billion of cash and cash equivalents, which excludes the EUR 284 million of restricted cash from the European Commission related to the IRIS2 program. I would like to now make a few comments related to our acquisition of Intelsat, which was finalized on July 17, post the first half balance sheet date. SES closed the deal with a final cash consideration of USD 2.6 billion or EUR 2.2 billion and certain contingent value rights. SES financed the deal with a combination of cash, a term loan agreement, hybrid and senior unsecured bonds. On June 17, SES announced the successful launch and pricing of dual tranche notes raising EUR 1 billion with a combination of EUR 500 million due in 5 years, bearing a 4.125% coupon and EUR 500 million due in 8 years, bearing a 4.875% coupon.

The success of SES' ability to secure long-term financing enabled the redemption of USD 3 billion of the Intelsat 6.5% first lien senior secured notes due in 2030. The combined company is expected to generate growing levels of adjusted free cash expected to be over EUR 1 billion by the 2027-2028 time frame, including from a ramp-up of significant synergies and strong growth outlook with sufficient liquidity to cover upcoming maturities. Our strong balance sheet metrics remain intact as we enter on our path to delever with SES' net leverage target at below 3x within 12 to 18 months after the Intelsat closing.

Finally, let's turn to our full year stand-alone SES 2025 financial outlook on Page 23. Our first half 2025 performance was solid, and we are on track to meet our full year 2025 financial outlook. On an SES stand-alone basis, 2025 group revenue is expected to be stable and adjusted EBITDA is expected to be broadly stable year-over-year, driven by strong Networks growth, partially offset by an expected decline in Media from general market dynamics and the restructuring activities related to a Brazilian customer bankruptcy.

CapEx is to be within the range of EUR 425 million to EUR 475 million, and we expect an annual average of approximately EUR 325 million for 2026 through 2029, excluding IRIS2. As discussed on previous calls, IRIS2 CapEx phasing is expected to be back-end loaded with most of the CapEx to ramp up from 2027 and will translate into an average annual spend of around EUR 400 million over 2027 to 2030. We will announce exact phasing of the IRIS2 program once the project cost estimates and time schedule have been finalized, which is expected to occur after the project's first key milestone known as Rendezvous 1 at the end of the year or early next.

As you know, we just closed the Intelsat acquisition 2 weeks ago and after the June 30 balance sheet date. We will start providing a combined company financial view with our Q3 earnings call. I can tell you that the Intelsat stand-alone financial performance for the first half of 2025 is in line with expectations and tracking to the full year outlook Intelsat provided.

Thank you again for your time this morning. I look forward to meeting many of you to exchange views about our business and the exciting journey ahead for SES.

With that, I hand it back to Adel for his closing remarks.

Thank you, Lisa. On Page 25, I want to reaffirm the strong momentum behind our evolved differentiated strategy. Our solid first half 2025 financial performance clearly reflects the benefits of our transformation, focused on creating a more efficient and agile operating model that accelerates execution and enhances profitability, as well as operational efficiencies and cash flow as evidenced by further reduction in controllable OpEx of 5% year-on-year in the first half of 2025. And as a reminder, we had 9% reduction in OpEx in full year 2024.

Demand for our advanced multi-orbit offering continues to grow as customers seek high-performance solutions that simplify operations. While commoditizing offerings face growing competition, SES is uniquely positioned to lead in delivering high-value managed services where performance, reliability and support are critical. This is evident in our strong commercial momentum with EUR 690 million in new contract wins during the first half of the year, contributing to a EUR 4.2 billion backlog.

Our continued expansion of mPOWER with satellites 7 and 8 now in service and satellites 9 and 10 now successfully launched and in service at the beginning of 2026 alongside investments in innovation and programs like GovSat-2 and IRIS2 ensures our network stays ahead of evolving customer needs. With a differentiated future-ready platform, compelling vertical value propositions and continued investment in innovation, SES is strongly positioned for long-term sustainable growth and value creation in an increasingly competitive and innovation-driven market.

Finally, on Page 26, our ambition remains to position SES as an industry leader in a valuable fast-growing SATCOM industry. Now together with Intelsat, we're creating a stronger global multi-orbit connectivity powerhouse, uniquely positioned to lead in this dynamic, fast-evolving industry. Our focus remains firmly on customer centricity, delivering maximum value to governments and commercial clients in our priority markets. With laser focus on execution, operational excellence and our key strategic priorities, we're set to accelerate growth in Government and Mobility, driving sustainable profitable momentum across the Networks business.

We are investing with intent, enhancing efficiency, expanding capabilities and powering innovation through mPOWER. And there are a few other examples like Impulse, Helios, Lynk, direct-to-device, Open Orbits and sovereign secure connectivity programs like GovSat-2, MGS, SIMON and IRIS2. With regards to C-band, our ongoing cooperation with FCC reflects our commitment to serving our clients for securing the best outcome for SES in North America. With greater scale, stronger financial firepower and a future-ready solution set, SES is well positioned to be a top-tier player in global connectivity and on track to generate over EUR 1 billion in free cash flow by 2027-2028 before IRIS2. And at the heart of it all, our people remain our greatest assets, driving our culture, our performance and our long-term success.

With that, we're ready to take your questions.

Operator?

[Operator Instructions] We will take our first question from Paul Sidney, Berenberg.

Two, please. You saw a very strong acceleration in Government revenue growth in the quarter, more than 20%. Just wondering, is SES seeing the benefit of increased European defense spending already? And also, you mentioned in the release good traction with U.S. government. You've just announced GovSat-2. Just wondering how the outlook for your Government division is evolving given the changing geopolitical landscape.

And then secondly, on mPOWER. It's been a very eventful few months for the network. You boosted the capacity with 7 and 8, 9 and 10 recently successfully launched. I just wondered, has this led to an increase in interactions with your key global customers now that they actually see the capacity is around the corner and that boost is coming in the next few months?

Very good, Paul. Thank you. Let me start with the first one, right? So Government outlook, right? So clearly, as I said in my prepared remarks, we're seeing a growth, an acceleration in government demand. And we're seeing it on both sides of the Atlantic and also in other governments outside of the United States and Europe. And it's fueled by this commitment of all these governments to build a sovereign communications capabilities, and space is a very core element of that strategy, right? It is just very, very core to that. So that's why we're seeing the surge.

Now 20-plus percent growth year-on-year performance in second quarter is very, very strong. We expect that the Government business will continue to see high single-digit growth into the future, right? We don't know if we can repeat the 20% growth. I mean, we've had a few quarters with good solid double digit, and we could see a few more in the future. But we're quite confident that a high single-digit growth in the government will continue for the foreseeable future, right? I mean, these investments take time. The buildup of these capabilities take time. The changes of the government defense architecture takes time. So we expect it to continue for the foreseeable future for us.

Look, on mPOWER, your second question, we're super-excited, right? I mean this was desperately needed additional capacity, as I shared in prior calls. We've been managing the constraint in that segment with predominantly giving the capacity to our government customers and our cruise customers. The reason for cruise is they were the first adopters of the MEO orbit in the past. They were one of our biggest customers on MEO classic and now they are one of our biggest customers on the mPOWER. With this additional capacity, we're able to give all of the segments more capacity. And our customers are waiting for this capacity to be available to be able to take advantage of this. We already have several contracts that are anticipating that capacity growth, right? So we're quite excited about that and can't wait for the last 3 satellites to go up so we can really increase the capacity almost threefold from where we were last year to 2027. So hopefully, Paul, I answered your questions.

Yes, that's great. Can I just have a quick follow-up on Government? Are you seeing a general trend for government and militaries moving away from U.S.-based capacity and towards yourself and other non-U.S. operators? Is that a general trend that you're seeing already?

Well, look, so first of all, we're seeing Europe being very serious with their defense spending to build and strengthen their satellite capabilities. For sure, we're seeing that. We're also seeing them growing their demand for existing constellations. As an example, GovSat-2, which is the successor for GovSat-1, will be used by the Luxembourg government for their own purposes, for NATO, for U.S. and for allied forces, right? So there's demand for this additional capacity coming from all angles. At the same time, on the U.S. side, their space force and their architecture continues to grow. So they continue to invest as well in their dedicated military satellites, government-owned, as well as their use of the commercial satellite architectures. They were very clear with the architecture they want to drive, which is a hybrid architecture between both. So we're seeing it on both sides.

It's not that people trying to go away from a particular usage. They actually have more demand for the existing capacity that they have, but they also want to build their own sovereign capability in the future.

We will take our next question from Terence Tsui, Morgan Stanley.

I've got a few questions when thinking about the combined company, please. And firstly, just beginning with Intelsat, you mentioned that the performance is in line with your expectations. I remember in Q1, there was a pretty sharp slowdown in revenues and EBITDA under U.S. accounting. Are we saying -- are you thinking now that Q2 performance has improved quite materially?

And then secondly, when we're thinking about the phasing of the midterm guidance for EBITDA growth, you mentioned that the 2024 pro forma is about EUR 1.8 billion. What's the pro forma for 2025 shaping up to be? And do we think this mid-single-digit EBITDA growth is going to be more back-end loaded?

Tsui, well, let me start, and then Lisa can pick up where I -- so first of all, look, when we -- if you go to -- if you were following Intelsat and went to their public website, they have published their forecast for the year. And they had explained in the past why there was a slowdown in the first half of the year and how they were guiding towards that. And they also gave a forecast for the full year, right, at that point in time, which was high single-digit revenue growth to double -- low double-digit revenue growth and mid-single-digit EBITDA decline. And we understand all the dynamics, right, why this is happening. And by the way, they have delivered according to their forecast in the first half of the year. But the only reason we don't have these numbers is because their close of the quarter is slightly later than ours. And we need to take their numbers to their traditional audits and confirmation and things like that. So they're not ready to be published, which is why we don't have them today. But we know the numbers, we've seen the numbers, which are in line with what they have guided the market.

We've also looked at the full year forecast, and we're very comfortable with the guidance that I just mentioned to you, that I just summarized. So there is a clear explanation why they had a slowdown

[Audio Gap]

with party capacities with the delay of certain equipment for the aero business and the delay of their government contracts, which we have been following very, very closely, right, and very confident of the execution and closure of some of that -- some of these drivers in the past. So that's as much as we can tell because we don't have audited accounts that we can share with you.

Now regarding pro forma for 2025, look, I am very sympathetic that all of you are eager to see that. We're eager to publish that as well. But we just need a few more weeks as we work through the combination of the 2 companies, and we will share that with you when we do the third quarter announcement. So we're going to be shifting gears as we go to the next earnings announcement by giving you the full guidance of the new company, if you will, for 2025 when we do our third quarter announcement. And also, we start talking to you about how do we see the business evolving. And how do we see it for 2026 and 2027 and so on. Lisa, please.

Yes, not much more to add from what Adel mentioned, but I think first comment regarding Intelsat, they did perform in the second quarter as expected, which we were pleased to see. We also closed the acquisition, what, 2 weeks ago. So we've been diving into the numbers, and we're looking forward to putting together the combined guidance. Again, we have to convert from U.S. GAAP into IFRS for Intelsat as well. But all things are trending in the right direction. We had good business reviews over the past couple of weeks. It looks like if we look at the -- into the second half, the growth is really coming from our Government business, which is as to be expected. We also will have a bit more equipment sales into the second half too, that have a bit of a mix effect with lower margins on both the SES as mPOWER comes up into service and on the Intelsat side in our commercial aviation business. So again, we're really excited to publish the second half guidance once we get our arms around them, the combined company outlook.

We will take our next question from Aleksander Peterc, Bernstein.

I'd just like to clarify on reporting. Do you intend to now only report combined Intelsat-SES results from 3Q onwards? And if you do that, then I do wonder what is the point of having a stand-alone SES guidance if you're not going to report those numbers anymore. So I'd just like a little bit of clarity on that.

Secondly, you already touched upon this a little bit, but I'd like to have a little bit more visibility into the additional capacity from O3b. You had launches of 5 and 6 in November and 7, 8 in December last year. So I suppose those are already on stream fully in the reported second quarter. And then you're launching -- you just launched 9 and 10. So that will start delivering full capacity from Q1 '26 onwards. Is that correct?

And if you could put any numbers on this, that will be helpful. I know you said capacity on mPOWER went up threefold since the launches of 5, 6, 7, 8 and 9 and 10. Is that the correct vision? And if you have anything else to give us an idea of how these additional launches phase and feed into additional revenue for Networks, that would be helpful.

Thank you, Aleksander. Lisa, do you want to take the first part, which is how we're going to report?

Yes. Yes. The way that we are going to structure ourselves going forward will be combined. Adel and the company announced how the leadership team will look like. We're organized with the 4 verticals. We will start to report combined, and that's how we want to continue to manage the company going forward. So you can look forward to that again. We'll announce those -- that in the third quarter results.

And Aleksander, your question about why are we still doing the stand-alone company guidance. Look, we are obligated to do that to you guys, right? I mean we were a stand-alone company in the first half of the year. We have to reinforce how the company is performing operationally, and we will shift gears, right, as soon as we integrate those numbers. So going forward, you'll see the integrated numbers for the company.

Look, your second question on O3b. So to be clear, the threefold increase in capacity compared to 2024 and -- when we first launched the and went into operation, refers to when we have all of the new satellites up, right? So that's going to be beginning of 2027, right, when we get all the additional 3 satellites that are still missing. What happened with the 7 and 8 is we've seen a 30% increase in our capacity already. And that is fueling our growth, both in Mobility as well as in government, right? That's because people do need that capacity. And as soon as it comes on board, they are actually using it.

Now the reason there is a bigger boost when we go into the additional 3 satellites is because we will be changing the configuration of the network, right? And that will add more satellites in the network, if you will. I don't want to get into a lot of technical details on this call, but if you're interested, we can walk you through it. But we are increasing -- we're changing the configuration, what gives us more capacity. And we also keep in mind that these new satellites have -- they're totally healthy. So we can run them at full power. Where the first 4 satellites, they were run at a much lower power consumption in order to preserve their health, in order to preserve their life. Now that we don't need that preservation, we're going to go full power on the healthy satellites. We will use the old satellites as backups, right, in terms of -- instead of being the main network components, if you will. And that will enable us to take it to the next level of performance and next level of capacity. That's how it works. So 30% already seen and then a big boost as we go into the last 3 satellites being launched and in operations.

Hopefully, Aleksander, that's clear. If not clear, if you're hungry for more, just come back to the team, and we'll walk you through it.

Yes, excellent. I would like that actually. Just a quick, very quick housekeeping one. Is your refinancing now complete? Or are there any other debt adjustments you'd like to make for the combined company between now and year-end?

Debt, we're just thinking through it, debt adjustment, I don't think we have plans to do any.

No. No, no. What we're really working for towards right now is to meet the net leverage target within 12 to 18 months, which is less than 3x. We are very committed to ensuring that we are delevering according to our maturity schedules. We are going to take -- we do this already, but we -- I'm going to put a lot of emphasis too on how we're looking at our investments and ensuring that they are very well aligned with our strategies and that they have the proper return on investments associated with them. So we're going to continue to maintain the financial discipline that we've had and probably put a little bit more rigor on things going forward as well to accomplish our deleverage targets.

We will take our next question from Ben Rickett from New Street Research.

I had 2 questions, please. So firstly, just a follow-up there. So you're mentioning that your MEO capacity is increasing 30% with these recent launches. How does that feed through into revenue? I mean, presumably that doesn't drive an exact 30% increase in revenue. So how are you thinking about the feed-through and unit price dynamics as you bring on this new capacity?

And then second question I had was just around how you think about currency risk. So your business is increasingly dollar-denominated, but I see you have been refinancing most of -- I think all of the recent debt has been in euros. So how do you think about that risk? And are you using derivatives to hedge that exposure at all?

Very good. Thank you, Ben. Good to hear from you, by the way. Look, on the capacity increase, when we built our business plan, 3-year plan, 4-year plan, and as we model our future growth of our segments, right, and which is why we are very confident of our Networks business continue to grow, we assume these growth in capacities. So these increases in capacity are built into our forecast where we're returning to growth with Network business continues to be a very good growth driver and our Media business after this transition year goes back to the model that we're all familiar with, which is kind of middle single-digit decline as it goes forward. So every capacity increase is spoken for, right? So our customers are waiting for it. We have some -- we already have, like I said before, already contract obligations that we have committed.

Now regarding how does the unit price look like, it varies dramatically by segment them, right? So it's not the same in the segments. Government, which is our most attractive segment, continues to be quite stable. I mean there is more demand than there is, to be honest with you, not enough capacity in the market today despite what everybody thinks in the areas where our Government customers really want it. And therefore, the pricing tends to be quite stable and opportunities to actually have some premium pricing when we're doing unique projects for the government, especially in the R&D phases where they want to have very advanced innovation for their capabilities.

When you look at other segments, for example, we've seen pressure in the fixed data market, right? That's what we do see. That's our most competitive segments, which is why logically, they did not get the mPOWER capacity that was available, right, because we pushed it into the segments that have better pricing dynamics. However, as we bring mPOWER more, we will go drive differentiated solutions. Now the way that we sell, keep in mind, is not through a capacity-only sales as in the past. We're offering our customers a managed service solutions. We're offering them multi-orbits. We're offering them an ability to manage that network for them. We've taken over some of the network elements that the customers used to own themselves, like we're doing in Media, like their ground infrastructure because we just can operate ground better than anybody. We have the largest ground infrastructure than any of our competitors around the world, including Starlink, right? Just register that, right, in terms of capabilities on the ground.

So we are taking over some of the capabilities that the customers used to do in-house, and that gives us an ability to provide a more compelling solution, if you will, for our clients that makes it different. So unit pricing varies by different segments, where some segments that have bigger pressure and bigger competition and other segments where people do appreciate -- customers do appreciate a more end-to-end solution, we have stability in those unit pricing. And we manage our capacity accordingly. We optimize it. We make sure we put it in the areas where we can generate more profit and more cash for the company, which we need in order to pay down debt and continue to invest in our company.

Look, on the second part, I'll start and. Lisa, please help us. Clearly, the new company, the combined company has much more dollar exposure than what we had in the past. I mean our Government business is a very sizable business. It's going to be hitting close to $1 billion business as an overall government. We have not shared that before, and I'm sharing it to you guys to give you the significance of that segment. It is actually equally split between euros and U.S. and U.S. dollars right now, and the growth continues to be in euro as well as in the U.S. dollars. But we are going to look at our structure going forward as maturities come and as we renew our debt structure as we pay it down to create a more balanced portfolio of the balance sheet.

Today, we don't have any hedging. We have not implemented hedging going forward. But we're exploring what else can we do that, right, and going forward. We also watch, of course, the economists and their predictions of how this currency is going to evolve, which is everybody is watching that. So today, that's our approach, and that's our strategy going forward.

Yes. So maybe just to follow up on that, and I think Adel hit how we're going to have to frame the future really well. But if we look at just the results of the first half, we experienced a weakened dollar in Q1 into Q2, which if you want to think about it, it probably had about a EUR 12 million impact on the revenue side, maybe around EUR 8 million on adjusted EBITDA. So not great evolution of the weakened dollar quarter-over-quarter, but something we certainly need to consider in the future.

The other thing is that the -- for the combined company, we will have about 60% of our revenues will be U.S. dollar-related revenues. But we will look in to see where the growth in the company is coming from, euro-denominated functional currencies or U.S. dollars. We have to evaluate the use of hedging instruments, derivatives, et cetera, going forward, just as Adel mentioned. But today, functional currency, of course, is the euros.

One other thing to consider too is where the cost base is. So if you look at our CapEx, maybe a rule of thumb is to think about 50% is U.S. dollars, 50% is in euros. We have clear synergy targets that we are 100% focused on right now, and that will reduce the cost base in both euro and U.S. So those are things that we are working on right now. But thanks for the question.

And if I may just add, Adel, we've got the natural hedging on the cost side, right? That's part of why we're not putting real hedges into place, there's natural hedging. And the number Lisa has given is the $0.01 sensitivity on the revenue and the EBITDA. For the quarter-on-quarter exposure, it was about just over 50% of the absolute decline quarter-on-quarter came from ForEx weakness, and it was about 1/3 on the EBITDA, just to be sure we are all on the same page then. Thank you.

Yes, good question. Ben, hopefully we answered your questions.

We will take our next question from Nick Dempsey, Barclays.

I've got 3 more questions, please. So first of all, you have 7 satellites for the combined business planned for launch in 2027, if I added that up right. I think that's a lot to manage in a year compared to what we've seen over history. So to what extent is your target of EUR 1 billion of free cash flow before IRIS2 tied to the successful launch of that number of satellites in 2027? That's the first question.

Second one, can I double check that when you are pointing to net leverage less than 3x within 12 to 18 months of closing, we're talking about including 50% of hybrids, not including leases in net debt and using adjusted EBITDA that includes Intelsat's noncash component? And the final question, after putting in place all of your financing, are you still happy with that about EUR 350 million of net interest combined business in the first full year of the combination, which you pointed to previously?

Let me start with the first question, right? So the 7 satellite launches, if you got the math right, I haven't checked it, were all, Nick, they were known to us, right? So during our diligence -- so none of these are news for us. We've diligence that. We know the satellites. By the way, out of the 7, there is 4 -- I think it's actually more than 7, but there is 4 software-defined GEO satellites that Intelsat had planned to launch. We have 2 software-defined satellites that will be between end of '26, beginning of '27, et cetera. Then we have, of course, mPOWER satellites that will be all launched in 2026. We do have the capacity to deal with that, Nick. We know how to run them. We know how to drive them. We have a very good cadence of launch. We are lucky to be in a market where the launch is now quite highly predictable and has been very efficient for us. So that is all in there.

Now how much is our EUR 1 billion cash generation tied to the success of these launches? I need to really think about it deeper, but I wouldn't say it's dramatically tied to those successes because a lot of these launches are actually going to be coming online in either late 2027 or early 2028. So the impact of these satellites are going to be felt more in 2028 in terms of revenues and things like that. And the way the procurement agreements are set up, I mean, they're tied to certain milestones of these satellites being ready to launch and achieving those milestones. So if there are delays or if there are issues, we have certain protections built into some of these contracts with liquidated damages or delay fees and things like that. So that's kind of the answer, I think. But we need to give it a little bit more thought, Nick, and get back to you with a little bit more precise answer versus what I have.

Can you take the other 2 questions? I actually didn't follow exactly what.

Yes. I think the answer to those are just -- are pretty simple at this point. No real changes into how you should think about the modeling going into the second half and into the midterm outlook with respect to interest expense or how we're thinking about paying down the debt. Again, our target at this point, we're going to do everything we can to ensure that we're hitting that net leverage ratio of 3x within 12 to 18 months.

Yes. And Nick, as I said in my presentation, look, we are going to spend a lot of time with you guys before we get into the third quarter earnings announcement to help all of you with your modeling, right, to give you a lot more insight from what you have today. And I fully understand there is a need for more information, but give us -- just give us a few weeks to get our arms around what we actually combining the financials of the 2 companies.

[Operator Instructions] We will take our next question from Roshan Ranjit, Deutsche Bank.

I've got 2 questions, please, and one quick follow-up. Adel, you – I appreciate the deal was only 2 weeks closed, but you did mention significant synergy execution from day 1. What are those synergies that are, I guess, already coming through or starting to come through, please, if you could give us a sense of how that is progressing? And again, you said you've had a good look under the hood. Any positive surprises within that?

Second question is around C-band. And I think back in February, the FCC started their consultation period. They've got a feedback period within that. So I think that brings us to the kind of mid- to end August time frame for that review period to complete. What are the next steps beyond that? Because I think they seem quite keen to progress there?

And lastly, my follow-up question is just on Government and thank you for the detail. Is it possible to get a sense of the mix within the GEO and MEO developments within that segment? And is it kind of existing customers who are perhaps augmenting the capacity with a MEO add-on? Or are you seeing new government customers come in and taking the MEO capacity. I guess in the context that GovSat is a -- GovSat-2 is a GEO satellite, I guess, are you still seeing demand for GEO?

Very good, Rohan. Thank you for the questions. So let me start with the synergies. As I shared with you several quarters ago, right, we've done a detailed synergies planning, right, during the last 12 months after we announced the deal. And that was done bottoms-up by executives that are now running the company, right? So this is not new people coming in. It's the same folks that I introduced were actually involved in the integration planning and synergy details. So we have the blueprint. And that blueprint is now actually in the last 2 weeks have been transformed into exact milestones, what are we doing day 1? Are we still executing what we said there? Do we need to make some adjustments? And we already have executed some of the synergies.

The fast synergies are, of course, leadership team, right? I mean the leadership team was double the people that we currently have. So the guys who didn't make it, they are synergy. They're leaving the company, right? Agreements have already been signed and people departure dates are set, et cetera. We also, by the way, announced the Level 2 leadership in the company. So in our kickoff call on the 17th of July, when we brought 4,000 people together in a call, and I was actually physically in Tysons and Washington, D.C. and the rest of the leadership team was spread across the world. We announced our Level 2 leadership team.

So we already know the synergies that we have of that Level 2 leadership team and so on, right? So Roshan, we already are executing what we said from a labor synergies from an OpEx perspective. We also have a non-OpEx synergies that we are crunching through right now. And we have huge confidence that we're going to be able to execute very, very fast, right, because we're prepared for it. And I'm confident that you've seen from the last several quarters when we declare something, we focus on execution and making sure that happens. And that psychology, that approach, that operational rigor will only get better with this new leadership team that we have. So that's what I mean by ready day 1 and executing day 1.

Yes. Maybe just a commentary, [ Tery ] because I came in 6 weeks ago. And I have to say I was extremely impressed to see the plans because synergies is obviously at the front of what we need to do going into the combined company. So really happy with what the team was able to do. I just came from doing a $2.5 billion integration, and I think the team here is really, really positioned well for us to execute on what we said we were going to do.

Good. Now on C-band, right, you said, look, what are the next steps? So as you've seen, all of you probably, in the reconciliation budget and the new budget, the big beautiful bill as it's branded in the U.S., had explicit instructions for auctioning at least 200 megahertz of auctions in the U.S., specifically targeting the upper C-band, right? It was not exclusive to the C-band, but it was specifically targeting that C-band. So we expect that to move quite fast. As soon as the FCC is finalized with their process and all of the inquiries and feedback that they're going, we expect them to move quite fast in 2026 in the next steps. And the next steps would be a date for the auction and then deciding when to do the auction. Clearly, we don't have control over that. That is an FCC decision, and they will drive it.

But as I said in my opening remarks, we are collaborating with FCC. They understand our need to protect our customer base and provide solutions to them and provide transitions, and we are providing the technical know-how which we will continue to provide to FCC on actually how do you execute that clearing going forward. And by the way, the combined company has more experience than anybody else in the world on clearing the C-band. It's a fantastic team, both from a planning perspective, but also from actually technical execution to be able to do it. So that's the next steps that we have.

Look, regarding your customers -- your Government question, look, the fact is GEO is still hugely demanded by our customers in the government, hugely, because there are many applications that we forget to think about that are very much relevant to GEOs, right? Not everything is LEO. That's what I keep repeating and I keep saying, but people tend to forget. So the usage of GEO continues to be very robust in the Government sector on both sides of the Atlantic. Clearly, there are very valid applications like in-field communications, soldier communications in the theater that LEO serves extremely well, extremely well. So the governments are expanding their portfolio of the need into our multi-orbit capabilities where they're adding LEOs, they want more NEOs from us, everything that we can deliver and they maintain their GEO capabilities. But over time, that GEO is declining and moving towards NEO and LEO. But I do not see in the foreseeable future, governments not using GEOs.

And GovSat-2 is a really good example, right? This is the next generation of very robust military-grade satellite that's going to be in service for the next 20 years after we launch it. And the governments foresee the need for that, right, for the applications that they have. And by the way, one of the key applications is drones, right, and management of drones, and ISRs, where GEOs are positioned extremely well to do it and so on. So that's what we see.

And in terms of the client base, we have both. We have our existing clients that are asking us for more. Some of them are asking us for different capacity configurations as we go forward. So more NEOs, if you will. And some of our customers asking us for LEO as well. And by the way, like I said, we're positioned through strategic partnership to provide that multi-orbit capability. But there are also new customers that we're acquiring, right? A lot of stuff on the European theater or on the European side, we're beginning to see new customers knocking on our doors, getting us engaged in their procurement processes in order to deliver new capabilities that they didn't have before.

And look, the reason I emphasize Europe is for a couple of factors. One, all the European nations, part of the European Union have now clearly committed to increase their defense spending up to 5%, right? You've seen that. Space is a very important component of that increased investment. So that's driver #1. Driver #2 in Europe, which has been proven in the U.S. is the dual usage of both military-grade satellites, i.e., dedicated sovereign satellites, along with the commercial capabilities, which the United States Space Force has demonstrated and has communicated their architecture and have been implementing for many, many years.

So that's why we're seeing benefits from that hybrid military, government-owned and commercial fleet leverage. We're beginning to see that happen in Europe. So if you've seen the U.K. Department of Defense, you've seen the German Department of Defense declaring their architecture, space architectures, they are very similar to what the U.S. Space Force has been driving, i.e., multi-orbit architectures and a hybrid solution between government-dedicated satellites and commercial satellite fleets. So that is what's driving that demand. And like I said before, we see it for the foreseeable future. We don't see it ending like in the next 2 years. Sorry for going long, Roshan. Hopefully, I answered the questions.

There is no further questions on the line. So I will now hand you back to your host for closing remarks.

Thank you, everyone, for participating in the conference call. And as Adel already mentioned, we're in a very good shape and on an exciting journey now as a combined company. Please follow up with IR on any further more detailed questions you might have, and we look forward to keeping you informed about the next developments, the next steps and look very much forward to seeing you on the road after the summer break. Thank you for participating, and have a good day.

Thank you, everybody.

Thank you for joining today's call. You may now disconnect.