Space42 delivers resilient H1 2025 performance
In H1 2025 Space42 delivered a resilient performance with normalized net profit of USD
53 million, in line with prior period and an increased margin, demonstrating strong operational optimization and strategic execution.
The Company closed the period with USD 816 million in cash and short-term deposits and a newly secured USD 0.7 billion ECA-backed funding facility, underpinned by contracted future revenues of USD 6.8 billion and substantial progress across each of its four strategic pillars.
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."
Space Services Gains Market Momentum
Space Services achieved 2% year-on-year revenue growth in Q2 2025, reaching USD 100 million, driven by double-digit expansion in the Oil & Gas segment. The business performed strongly across secure communications and mobile satellite services domains, firmly benefiting from the drive for secure and sovereign communications capabilities in the UAE. The company anticipates this drive to continue in the medium to long term.
Growth is set to accelerate in the second half of 2025 as the recently launched Thuraya-4 satellite starts commercial operations, offering several new mobile satellite services for defense and security as well as commercial applications. These capabilities are increasingly relevant in the context of recent regional events. Space Services also made significant progress in the direct-to-device future space system with key milestones to be announced in H2 2025.
Smart Solutions Accelerates Manufacturing and Platform Capabilities
Smart Solutions, whilst underperforming due to the timing of multi-year engagements it is firmly seeding, continued to build programmatic capabilities with new programs expected to come online in the second half of 2025.
Its primary focus is to manufacture and deploy the Foresight system, comprising seven latest-generation Earth observation SAR-based satellites whilst continuing to advance the development of its GIQ geospatial analytics platform. This is now deployed on the Microsoft Azure Marketplace to address a global market of growing requirements for dual-use geospatial information and insights. These capabilities received the Future Fit seal from the UAE Government under the umbrella of the UAE Space Agency, recognizing their significance to Space42 and to the UAE.
Delivering Across Four Strategic Pillars
Space42 continued to drive momentum across its four strategic pillars:
Preferred Partner for Premium Geospatial Data
Launched the Middle East's first dedicated commercial Synthetic Aperture Radar (SAR) satellite manufacturing facility, in partnership with the Abu Dhabi Investment Office (ADIO). The facility enables sovereign manufacturing of high-resolution satellites following the launch of Foresight-1 and Foresight-2, laying the foundation for a scalable Earth Observation constellation that strengthens coverage and revisits rates
Completed construction of High-Altitude Platform Systems (HAPS) manufacturing and R&D facility, set to deliver more than 20 unmanned aerial vehicles annually and finalized testing of advanced earth observation and 4G communication payloads, supporting civil, environmental, and defense applications with full commercial roll-out expected by 2026
MoU signed with Microsoft and Esri to deliver the Map Africa Initiative, a five-year program to produce the first high-resolution, AI-powered base map covering all 54 African countries. This unlocks new opportunities in infrastructure, logistics, renewable energy, and smart cities while strengthening Space42's position as the partner of choice for future national geospatial programs
Global Leader in Geospatial Intelligence AI Platform Services
Continued scaling and development of the GIQ platform, the digital backbone for AI-powered geospatial intelligence, in partnership with the UAE Space Agency. Launched on Microsoft Azure marketplace in H1 ahead of full commercialization and roll-out of industry specific solutions by Q4 2025
Received prestigious Future Fit Seal by the UAE Government Development and Future Office in recognition of Space42's differentiated capabilities and innovation
Advanced Joint Venture between Space42, FADA, and EDGE, to establish a national geospatial ecosystem and unlock a range of downstream applications. Legal and operational framework expected to be finalized by Q4 2025
Developing leading AI-integrated capabilities, including advanced Command and Control systems, unmanned platforms and sensing technologies that can be deployed to strengthen national infrastructure
Global Non-Terrestrial Connectivity (NTN) Leader
Substantially completed in-orbit testing of recently launched Thuraya-4 satellite with commercial operations expected to start in Q3 2025, bringing wider coverage, faster speeds, and enhanced capabilities across a portfolio of 16 new products. Flagship products, such as IP Neo Broadband and Thuraya Broadband Hotspot, were already launched in Q1 2025 and Q2 2025 respectively with further launches planned for the second half of 2025
Continued progress in direct-to-device (D2D) future space system, in partnership with Viasat, establishing a shared multi-orbit standard-based 5G NTN open architecture and a globally scalable platform. Key milestones planned to be announced in H2 2025
Trusted Leader in Secure Connectivity
Al Yah 4 and Al Yah 5 satellite program, on schedule and within budget, with Preliminary Design Review substantially complete and Critical Design Review underway. These assets will enhance national secure communication capabilities across defense and civil domains and are supported by a USD 5.1 billion, 17-year government contract which will start to generate USD 300 million of annual revenues from Q4 2026 onwards
Financial Highlights
Metric Result
Revenue USD 226 million (-17% YoY)
Normalized EBITDA USD 112 million (-14% YoY); margin up 2pp to 49%
Normalized Net Profit USD 53 million (in line with H1 2024); margin up 4 pp to 23%
Cash CapEx USD 109 million Cash / Short-Term Deposits USD 816 million Negative Net Debt USD 478 million
Net Leverage Ratio -1.8x Contracted Future Revenues USD 6.8 billion
The complete financial disclosures are available in the Investor Relations section of Space42's website at www.space42.ai/en/investor-relations.
The financial information presented in this press release has been prepared on a pro forma basis. This has been done to facilitate like-for-like comparison of financial performance of the combined Company.
For investor enquiries, please contact: ir@space42.ai
For media enquiries, please contact: media@space42.ai
About Space42
Space42 (ADX: SPACE42) is a UAE-based AI-powered SpaceTech company that integrates satellite communications, geospatial analytics and artificial intelligence capabilities to enlighten the Earth from space. Formed in 2024 by the successful merger of Bayanat and Yahsat, Space42's global reach allows it to address the rapidly evolving needs of its customers in governments, enterprises, and communities. Space42 comprises two business units: Space Services and Smart Solutions. Space Services focuses on upstream satellite operations for both fixed and mobility satellite services. Smart Solutions integrates geospatial data acquisition and processing with AI to inform decision-making, enhance situational awareness, and improve operational efficiency. Major shareholders include G42, Mubadala, and IHC.
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