Telesat (TSAT) | News Based Sentiment Analysis

• On September 12, 2025, Telesat completed a significant operational and financial restructuring by distributing 62% of the equity of its Telesat Lightspeed business to an indirect subsidiary of Telesat Corporation. This move signals a strategic shift in how the Lightspeed constellation project is managed and financed, potentially unlocking new investment opportunities.
• Despite earlier concerns about revenue, Telesat saw its stock price climb to $30.82 on the TSX by September 15, 2025, demonstrating renewed investor interest. This increase followed the Q2 2025 earnings report, where EPS exceeded expectations at CA$1.37, even though revenue fell short at $77.94 million.
• Institutional investment activity remained varied throughout September 2025. Trexquant Investment LP acquired 15,613 shares on September 10, 2025, indicating a positive outlook from at least one institutional investor. However, earlier in the month, Gabelli Funds LLC reduced its holdings by 5.3%, showcasing differing perspectives on the company’s future.
• The Lightspeed project continues to be a key focus, though it’s currently delayed by one to two years, with launches now anticipated next year and service in 2027. While the project is estimated to cost $5-6 billion, a contract with MDA Space Ltd. is projected to save $3 billion, offering some cost relief.
• Analyst sentiment remains mixed, with Barchart showing a 56% Buy signal from 13 indicators as of September 1, 2025, but the Trend Seeker® indicator suggesting a Sell. Morningstar also assigned a “Very High” uncertainty rating, reflecting the ongoing debate about Telesat’s performance.
• On September 4, 2025, Telesat filed an S-8 registration for its employee benefit plan, a standard regulatory filing that confirms ongoing internal operations and doesn’t directly impact the investment story.

The Investment Story: September saw Telesat navigate a period of restructuring with the Lightspeed equity distribution, alongside mixed financial results and continued project delays. Investor sentiment remains divided, reflected in fluctuating share prices and varied institutional activity.

What It Means for Investors: The Lightspeed restructuring and the EPS beat are positive signs, but the revenue shortfall and project delays introduce uncertainty. Investors should carefully weigh the potential of the Lightspeed project against the current financial performance and mixed analyst opinions.

Looking Ahead: Investors should closely monitor the progress of the Lightspeed project, particularly launch schedules and cost management. Tracking institutional investment activity and analyst ratings will also be crucial in assessing the company’s trajectory.

The Bottom Line: Telesat remains a complex investment with significant potential tied to the success of the Lightspeed project. While recent developments offer some encouragement, careful monitoring of execution risks and financial performance is essential.