Space42 Delivers Resilient Financial Performance for H1 2025

Space42, the UAE’s pioneering AI-powered space technology firm, has announced its consolidated results for the first half of 2025, reflecting operational resilience and strategic clarity amidst evolving global dynamics. Listed on the Abu Dhabi Securities Exchange under the ticker SPACE42, the company continues to integrate satellite communications, geospatial intelligence, and artificial intelligence to offer advanced services to global clients.

The company reported a normalized net profit of $53 million, maintaining parity with the prior-year period while recording an improvement in profit margins. This steady performance underlines successful operational optimization initiatives and the effective execution of long-term strategic goals. With a robust liquidity position, Space42 closed the period with $816 million in cash and short-term deposits. Additionally, it secured a $0.7 billion export credit agency-backed facility, reinforcing financial flexibility and supporting its $6.8 billion in contracted future revenues.

Karim Sabbagh, Managing Director of Space42, commented: "H1 2025 demonstrates our commitment to operational excellence and capability building. The momentum across our platform shows that our dual-use capabilities deliver both commercial success and strategic value. With Thuraya-4 entering commercial operation and our programmatic approach taking hold, combined with sustained optimization, we're positioned for growth aligned with market demand."

Expanding Momentum in Space Services

The Space Services business segment registered modest year-on-year growth in Q2 2025, with revenues reaching $100 million, driven primarily by increased demand from the oil and gas sector. The division showed strength across secure communications and mobile satellite services, benefiting from a sustained push toward sovereign communication infrastructure within the UAE. As regional geopolitical circumstances continue to evolve, Space42 anticipates heightened demand for its secure communication solutions.

A significant growth catalyst for the second half of the year will be the commercial deployment of the Thuraya-4 satellite. This advanced asset will introduce new mobile satellite capabilities tailored for defense, security, and commercial applications. Concurrently, the company is advancing its direct-to-device (D2D) initiatives, with critical milestones expected in the coming months that will pave the way for next-generation satellite-to-smartphone communication.

Smart Solutions Enhances Platform and Manufacturing Capabilities

Despite temporary underperformance linked to the timing of long-cycle contracts, the Smart Solutions business continued to lay the groundwork for future growth. Key initiatives included the expansion of programmatic capabilities, which are expected to mature in the second half of 2025.

The centrepiece of this division remains the Foresight system, a constellation of seven state-of-the-art SAR (synthetic aperture radar) satellites designed for dual-use Earth observation. Alongside this, Space42 is progressing the development of its proprietary GIQ geospatial analytics platform. The platform, now accessible via the Microsoft Azure Marketplace, is designed to serve global markets requiring high-precision, AI-enabled geospatial insights. The GIQ platform and associated technologies have been officially recognized by the UAE Government’s “Future Fit” designation, underscoring their strategic importance to national and regional priorities.

Space42’s performance in H1 2025 reflects tangible progress across each of its four strategic growth pillars, reinforcing its positioning as a global leader in space technology innovation.

Establishing Sovereign Manufacturing for Premium Geospatial Data

In a significant step toward building sovereign satellite capabilities, Space42 inaugurated the Middle East’s first dedicated commercial SAR satellite manufacturing facility, developed in partnership with the Abu Dhabi Investment Office. This facility will support the expansion of the Foresight satellite series and accelerate the deployment of a scalable Earth observation constellation.

Further enhancing its aerial capabilities, the company completed construction of a High-Altitude Platform Systems (HAPS) manufacturing and R&D centre. Designed to deliver more than 20 unmanned aerial vehicles per year, the centre is focused on dual-use applications, including environmental monitoring, civil surveillance, and 4G communications. Commercial deployment is expected to begin in 2026.

The company also signed a memorandum of understanding with Microsoft and Esri for the "Map Africa Initiative," a five-year collaboration aimed at producing the first AI-enhanced, high-resolution base map of all 54 African nations. This effort positions Space42 as the preferred partner for national-level geospatial programs across the continent.

Strengthening Leadership in Geospatial Intelligence Platforms

The GIQ platform remains central to Space42’s ambition to lead in geospatial intelligence. Developed in conjunction with the UAE Space Agency, the platform launched on Microsoft Azure in H1 2025 and will be commercialized by Q4 through industry-specific vertical solutions.

The platform received the UAE Government’s "Future Fit Seal" for its innovation and market relevance. Further reinforcing its geospatial strategy, Space42 progressed its joint venture with FADA and EDGE Group to create a national geospatial ecosystem, aimed at enabling a broad range of downstream applications. Legal and operational finalization is anticipated by the end of the year.

In parallel, the company is actively developing AI-integrated systems, including next-gen command and control solutions, unmanned platforms, and advanced sensing technologies, all of which are intended to enhance national infrastructure security and intelligence gathering.

Leading the Global Non-Terrestrial Network (NTN) Domain

Space42 is advancing its NTN strategy with major milestones achieved in H1 2025. In-orbit validation of the newly launched Thuraya-4 satellite is nearing completion, with commercial operations slated to begin in Q3. The satellite will enhance network coverage and speed across a product portfolio that includes 16 new offerings. Notably, IP Neo Broadband and Thuraya Broadband Hotspot were already launched in Q1 and Q2 2025, respectively, with additional rollouts scheduled for H2.

The company is also making headway in direct-to-device communication technologies in collaboration with Viasat. This partnership is focused on building a multi-orbit, standard-based 5G NTN architecture with global scalability. Significant technological milestones are expected to be disclosed in the second half of 2025.

Reinforcing Position as a Trusted Provider of Secure Connectivity

Progress remained on track for the Al Yah 4 and Al Yah 5 satellite programs, both integral to the UAE’s secure communications infrastructure. The preliminary design phase has been completed, and critical design reviews are currently underway. These satellites are supported by a 17-year, $5.1 billion government contract and are projected to generate recurring annual revenues of $300 million starting in Q4 2026. The systems will serve both defense and civil communication needs, solidifying Space42’s leadership in secure, sovereign satellite communications.

Financial Overview: Profitability Maintained Amid Revenue Decline

From a financial perspective, Space42 reported total revenue of $226 million in the first half of 2025, marking a 17% year-on-year decline. However, the company improved its operational efficiency, reflected in an EBITDA margin increase of two percentage points to 49%, with normalized EBITDA standing at $112 million.

Normalized net profit remained steady at $53 million, with a four-point increase in net profit margin to 23%, highlighting disciplined cost management. The company invested $109 million in capital expenditures during the period while maintaining a healthy balance sheet. With a negative net debt of $478 million and a net leverage ratio of -1.8x, Space42 remains well-capitalized to pursue its strategic roadmap. Contracted future revenues stand at an impressive $6.8 billion, reinforcing confidence in the company’s long-term visibility and financial strength.