Telesat (TSAT.TO)(TSAT) shares gained over 20 per cent on the Toronto Stock Exchange on Tuesday. The satellite communications firm’s CEO is the latest executive in Canada’s defence sector to hail a “once in a generation” global spending spree on military tech.
Formerly a Canadian Crown corporation, the Ottawa-based company has received billions in financial backing from the federal government to build its Lightspeed low earth orbit satellite constellation. At the same time, it’s working with the government and Brampton-based MDA Space (MDA.TO) improve communication in the Arctic.
“We’ve become increasingly bullish on the government and defence opportunity for Telesat Lightspeed, and the trends there only continue to get better,” president and CEO Dan Goldberg told analysts on a post-earnings conference call on Tuesday.
Beyond Canada, Goldberg says Telesat is an approved supplier for America’s “Golden Dome” national missile defence initiative. Last year, U.S. President Donald Trump said the project could require up to US$175 billion in spending. On Tuesday, Goldberg also touted recent talks with South Korea’s Hanwha Systems, a leader in advanced military communications.
Toronto-listed Telesat shares hit fresh 52-week highs on Tuesday, rising as much as 20.4 per cent to $58.55 per share. The stock has gained nearly 74 per cent in the past 12 months amid a flurry of investor enthusiasm for companies supplying increased military demand for satellite technology.
Last week, Desjardins hailed an “eyewatering increase” in weapons purchases since Prime Minister Mark Carney took office last year. According to Statistics Canada figures cited by Desjardins, spending on weapons systems in 2025 was nearly double its historic peak reached in 2010 during the war in Afghanistan.
On Tuesday morning, Telesat reported financial results for fiscal 2025, and the three months ended Dec. 31, 2025. The company booked a $433.2 million net loss, a slight improvement from the $447.2 million it lost in the year-ago period. At the same time, it says quarterly sales slipped on an annualized basis, from $128 million to $94 million.
“Telesat made strong progress on multiple fronts in 2025,” Goldberg stated in a news release. “In our GEO business, 2025 unfolded largely as we had anticipated, with ongoing revenue pressure in both our enterprise and broadcast segments.”
The company issued new guidance on Tuesday calling for its geostationary unit to deliver full-year 2026 revenue of between $300 million and $320 million, and adjusted earnings before interest, taxes, depreciation, and amortization of between $210 million and $230 million.