$116 million revenue "Space 42" During the first quarter

2026/05/14 1:00:03 PM

4 minutes read

Abu Dhabi, May 14 / WAM / Space 42 recorded revenues amounting to $116 million during the first quarter of this year, supported by the record performance of the “Space Services” unit during this period, with its revenues increasing by 15%, marking the fourth consecutive quarter of revenue growth.

Space 42 said in a statement today that this is due to the strong performance of the government business sector, which continued to benefit on an annual basis from the government contract for capacity services worth $700 million, extending for fifteen years, which entered into force on July 1, 2025 following the successful launch of the Thuraya-4 satellite.

According to the group, this path is expected to continue with the launch of new government and commercial applications during the year 2026.

The group’s earnings before interest, taxes, depreciation and amortization amounted to $52 million, while net profit amounted to $5 million, with a profit margin of 4%.

The Smart Solutions unit continued to implement its strategic transformation by refocusing on scalable programs and systematic implementation, in line with its core capabilities in the areas of Earth observation, geospatial analytics and artificial intelligence.

Space42 maintained a strong financial base, closing the first quarter of the year with cash flow exceeding $1 billion and future contracted revenues of $6.4 billion, providing significant ability to implement its strategy.

Karim Michel Al-Sabbagh, Managing Director of Space 42, said that during the first quarter of 2026, Space 42 continued to achieve growth in revenues compared to the same period last year, while maintaining strict discipline in managing costs and focusing on implementing its strategic priorities. The company achieved strong financial performance in light of the current regional conditions, which reflects the flexibility of its business model and the solid foundations it has laid.

He stated that this performance confirms Space 42’s ability to support various services for the government and commercial sectors.

He added that the Space Services Unit achieved its highest revenues ever during the first quarter, while the Smart Solutions Unit continued its strategic transformation by focusing on more sustainable and valuable projects, in line with the company’s main business areas. At the same time, the company continues to invest in infrastructure, partnerships, and resources that will contribute to shaping the future of “Space 42” in the coming years.

With regard to providing high-quality geospatial data, Space 42 has completed orbital operational tests of the Foresight-3, Foresight-4 and Foresight-5 radar satellites, which were developed in partnership with Ice Eye and launched in November 2025, with commercial operations scheduled to begin during the second quarter of 2026, enhancing the dual-use capabilities of the “smart solutions”.

Space 42 signed a memorandum of understanding with the International Fund for Houbara Conservation to deploy aerial photography systems and unmanned systems to monitor wildlife and protect biodiversity, relying on high-resolution images and artificial intelligence analyses.

Space42 also continued the development of Mira Aerospace’s ApusNeo18 and next-generation ApusNeo30 high-altitude platforms (HAPS), paving the way for significant commercial expansion.

Regarding global leadership in geospatial analytics platforms based on artificial intelligence, Space 42 continued to expand the “GIQ” data analysis center currently available through the “Microsoft Azure” store, which was recently enhanced by adding new and specialized applications in the fields of disaster management, infrastructure monitoring, in addition to defense and security.

With regard to non-terrestrial communications, Space 42 continued to expand the operations of Thuraya-4, one of the largest satellites specialized in mobile satellite communications services in the world, which is supported by a government contract worth $700 million for a period of 15 years, with the successful launch of the majority of the 16 new products associated with it, which are expected to contribute to revenue growth starting in 2026.

Space 42 has made significant progress in establishing Equatis, in partnership with Viasat, to provide direct communication services between devices and satellites on a global scale.

The open architecture based on 5G standards for non-terrestrial communications will allow mobile network operators to serve and provide coverage in remote areas that do not receive adequate communications services, supported by a globally coordinated frequency spectrum exceeding 100 MHz, a business model based on partnerships, and a globally scalable architecture.

In the field of secure communications, the “Al Yah-4” and “Al Yah-5” satellite programs continue to advance according to the specified schedule and within the approved budget, with support from a government contract worth $5.1 billion spanning seventeen years. The initial design review of the two satellites has been completed, and the detailed design review is expected to be completed during the first half of 2026.

These next-generation systems are expected to enhance national secure communications solutions at both the defense and civil levels, with annual revenues estimated at approximately $300 million as of the fourth quarter of 2026.

Space 42 has made progress in developing broadband capabilities across non-geostationary orbits, including low Earth orbit and medium Earth orbit, as part of a new multi-orbit strategy with a sovereign role.

These capabilities will complement the Al Yah-4 and Al Yah-5 programmes, and support secure communications services, while adding low-latency capabilities within non-stationary orbits.

Regarding autonomous transportation, Space 42 signed a memorandum of understanding with the Integrated Transport Center – Abu Dhabi Mobility, affiliated with the Department of Municipalities and Transport, with the aim of developing an integrated sovereign platform for mapping in the Emirate of Abu Dhabi, to be a basic basis for supporting data-based decision-making in the fields of transport, infrastructure, environment and smart cities.

Space 42 signed a memorandum of understanding with Autonomous A2Z to establish an entity in Abu Dhabi to implement Level 4 autonomous driving solutions in the Middle East and Africa.

It also signed a memorandum of understanding with Abu Dhabi Police to develop smart security systems and autonomous vehicles, which supports the expansion of mobility solutions supported by artificial intelligence and contributes to the development of a safe and sustainable smart transportation system.