Armed with a war chest of US$895 million in cash and short-term deposits and contracted future revenues of nearly US$7 billion, UAE’s Space42 was focused on capturing the next wave of opportunity in SpaceTech after reporting a muted Q1 earnings.
Revenue reached US$115 million for the quarter ending March 31, which was down 13 per cent year-on-year. The company attributed it to “milestone timing shifts within Bayanat Smart Solutions and transformation towards programmatic market engagement”.
Despite revenue being down, Space42 maintained a strong normalised EBITDA margin of 53 per cent and delivered a normalised net profit of US$30 million, in line with Q1 2024. The margin, on a normalised basis, improved by three percentage points to 26 per cent.
Space42’s strategic growth push
Space42 – an AI-powered SpaceTech company that seamlessly integrates satellite communications, geospatial analytics, and artificial intelligence capabilities for customers globally – was formed in October last year following the merger of Bayanat AI, a leading AI-powered geospatial solutions provider, and Al Yah Satellite Communications Company, the UAE’s satellite solutions provider.
Karim Sabbagh, Managing Director of Space42, commented: “We entered 2025 with a clear strategy and a platform built to scale. This quarter reinforced our discipline on margins, the momentum across our four strategic pillars and our focus on long-cycle delivery.
“We launched new assets in space, expanded coverage, and advanced programmes that strengthen sovereign capabilities and position us to scale internationally. We are executing a model anchored in differentiated infrastructure and downstream applications in satellite communications and AI-enabled geospatial analytics.
“Our focus is on programmatic and long-term engagements with our key customers. This go-to-market approach is well established within Yahsat Space Services, and the appropriate transformation is underway within Bayanat Smart Solutions.
“Our strategy is demonstrated by the dual-use satellite communication and earth observation platforms we are building and the differentiated outcomes we are delivering across national and international markets, with the latter segment to grow in relevance over time.”
Space42’s Four Pillars
Space42 has identified four pillars for future growth, and continues to execute and drive momentum. These aim for the company to become:
- Preferred Partner for Premium Geospatial Data
- Global Leader in Geospatial Intelligence AI Platform Services
- Global Leader in Non-Terrestrial Connectivity (NTN)
- Trusted Leader in Secure Connectivity
Towards the four pillars, Space42 reported that its Synthetic Aperture Radar (SAR) manufacturing facility is on track to begin production in the second half of 2025. This will enable sovereign production of high-resolution satellites and ensure full deployment of Foresight-3, -4, and -5 satellites.
The High-Altitude Platform Station (HAPS) development site in Abu Dhabi is expected to become operational by June 2025. A first in the region, the new facility will deliver more than 20 HAPS unmanned aircraft vehicles annually, supporting civil, environmental, and defense applications.
The company has already signed MoUs with FADA and EDGE to establish a national geospatial ecosystem and unlock downstream applications in surveillance, environmental intelligence, and secure mobility, with a total value exceeding US$100 million.
Thuraya-4, which was launched successfully and is now in orbit, is on track for commercial service in the second half of 2025. The satellite enables a next-generation mobility platform and a suite of new products offering wider coverage, faster speeds, and enhanced capabilities.
IP Neo broadband terminal was launched in Q1, addressing connectivity needs for critical infrastructure, logistics, and maritime sectors across underserved geographies, and Thuraya One smartphone, which was introduced as a commercial precursor to full D2D rollout, will provide seamless integration of satellite and terrestrial networks through a single consumer-grade device.
Space42 also said that Al Yah 4 and Al Yah 5 satellite programmes are progressing on schedule and within budget. Several units are now in test phase, with satellite launches planned for 2027 and 2028.
