Sigma Capital

03-03-2025

Space42 reports $629 million in revenues during 2024

Source: MIST

(WAM)-


Space42, the UAE-based AI-powered SpaceTech company listed on the Abu Dhabi Securities Exchange, announced its 2024 pro forma consolidated financial results.

The company delivered EBITDA of US$317 million, with an eight-percentage-point margin increase, and ended the year with a cash position exceeding US$1.1 billion.

Since its formation, Space42 has made progress on its strategy, focusing on premium geospatial data, geospatial intelligence AI, non-terrestrial mobile connectivity, and secure connectivity solutions.

In August 2024, Space42, in partnership with ICEYE, launched Foresight-1, the UAE’s first Synthetic Aperture Radar (SAR) satellite. A second satellite was launched in January 2025, with the full Foresight system set to go operational this year.

In December 2024, Space42 and ICEYE formed a joint venture to manufacture SAR satellites in the UAE, aligning with the UAE’s National Space Strategy 2030.

In February 2025, Space42 signed an agreement with FADA, an EDGE company, to develop an Earth Observation ecosystem tailored for government and commercial applications. The same month, Space42 and EDGE announced a collaboration worth over US$100 million, using data from the Foresight constellation and other systems for defence, security, and environmental applications.

In January 2025, Space42 launched the Thuraya-4 satellite, expanding mobile satellite services with greater coverage, security, and bandwidth. As a founding member of the Mobile Satellite Services Association (MSSA), established in 2024, Space42 is advancing the integration of terrestrial and non-terrestrial networks. The company is also progressing with two next-generation GEO satellites, Al Yah 4 and Al Yah 5, following a US$5.1 billion, 17-year contract with the UAE Government in November 2024, reinforcing its position in secure connectivity solutions.

Karim Michel Sabbagh, Managing Director of Space42, said, “In just a few months, Space42 has significantly strengthened its Earth Observation capabilities, secure connectivity solutions, and mobile satellite services with the launch of Thuraya-4. With a strong balance sheet and a revenue backlog exceeding US$7 billion, we are well-positioned to develop next-generation non-terrestrial networks, unlocking direct-to-device connectivity for billions of users.”

He highlighted five strategic priorities: programmatic growth with multi-year projects launching in 2025, maintaining a competitive edge through the Foresight system and GIQ platform, investing in human and economic capital, expanding globally, and ensuring operational efficiency with strategic capital allocation.

Space42 reported revenue of US$629 million in 2024, a 19 percent year-on-year decline due to timing shifts in a major Bayanat Smart Solutions project and a Thuraya-3 service anomaly. Adjusted EBITDA stood at US$317 million, stable compared to 2023, with a margin of 50 percent, up eight percentage points.

Excluding one-offs, Normalised Adjusted EBITDA was US$282 million, down 15 percent, with margins strengthening to 45 percent. Net profit reached US$166 million, slightly lower than 2023’s US$174 million, reflecting the adoption of UAE corporate tax.

Excluding tax, net profit rose by 5 percent, while Normalised Net Profit was US$135 million, down from US$179 million in 2023. Capital expenditure totaled US$348 million, mainly for the procurement of Al Yah 4 and Al Yah 5 satellites.

The company reported over US$7 billion in contracted future revenue, including the 17-year, US$5.1 billion UAE Government contract. Its strong balance sheet showed cash and short-term deposits exceeding US$1.1 billion, negative net debt of US$505 million, a net leverage ratio of -1.6x, and an additional US$500 million in expected advance payments for Al Yah 4 and Al Yah 5.

Normalised Adjusted EBITDA excludes one-off items, including US$30 million in liquidated damages, US$13 million in profit from a non-core asset sale, and US$9 million in merger and restructuring costs.

The 2023 Normalised Adjusted EBITDA of US$330 million was adjusted for US$5 million in one-off costs. Normalised Net Profit for 2024 of US$135 million reflects the same adjustments, including a US$3 million tax impact.

The 2023 Normalised Net Profit of US$179 million required no further adjustments.