UAE-based space technology champion Space42 has reported its full-year 2025 financial results, revealing a year of strategic transition. The company posted a consolidated revenue of $577 million, marking an 8 percent decline from the previous year, primarily due to a strategic overhaul in its Smart Solutions division. However, a 7 percent year-on-year revenue increase in the fourth quarter indicates a potential recovery and return to growth.
Normalised EBITDA for the year stood at $224 million, achieving a strong margin of 39 percent. The company’s balance sheet remains robust, ending the year with approximately $995 million in cash and short-term deposits and a significant $6.5 billion in contracted future revenues.
Space Services Drives Growth
The company’s core Space Services division was the standout performer, accounting for over three-quarters of total revenue. The unit saw its revenue grow by 6 percent year-on-year, recording its highest-ever normalised EBITDA and net profit.
This impressive growth was largely fueled by a landmark $700 million, 15-year government contract which commenced on July 1, following the successful launch and commercial activation of the Thuraya-4 satellite. This contract has driven sequential quarterly growth for the division throughout 2025.
Smart Solutions Undergoes Strategic Pivot
In contrast, the Smart Solutions unit reported a revenue of $124 million, a 39 percent decrease. This decline is attributed to a deliberate strategic shift away from legacy practices and towards high-value, programme-based work focused on Earth observation, geospatial analytics, and artificial intelligence. The full-year results also included one-off impairment charges of $129 million related to pre-merger Smart Solutions assets.
A Year of Transition and Foundation Building
Karim Sabbagh, Managing Director of Space42, described 2025 as a pivotal transition year for the company.
“In 2025, we laid the foundations for Space42’s future,” Sabbagh stated. “We invested in infrastructure, global partnerships and capabilities that will define Space42 in the years to come, whilst retiring legacy practices that no longer serve our ambition.”
He added, “Our financial results confirm that we are on the right track: Space Services delivered one of its strongest ever performances and Smart Solutions’ transition to programmatic engagements aligned to our strategic capabilities is progressing as planned.”
Future Trajectory and Key Projects
Looking forward, Space42’s major projects are advancing on schedule. The Al Yah 4 and Al Yah 5 satellite programme, which is backed by a $5.1 billion, 17-year government contract, has completed its preliminary design phase, with the final design review anticipated in the second quarter of 2026.
Additionally, the company announced plans to launch Equatys, a new venture in partnership with Viasat, to develop cutting-edge direct-to-device satellite connectivity based on 5G non-terrestrial network standards.
Sabbagh noted the company is entering 2026 with “an accelerating revenue profile, an optimised cost base, a strong balance sheet and a relentless focus on strategic execution.”
About Space42
Space42 is a global space technology champion based in the UAE, formed through the merger of Bayanat and Yahsat. The company provides a wide range of services, including integrated geospatial and mobility solutions, satellite communications, and business intelligence, leveraging a fleet of advanced satellites and in-house expertise. Space42 aims to deliver transformative technologies to shape a better and more sustainable future.
Source: Gulf Business
