News DeskABU DHABI, UAE – Space42, the UAE-based AI-powered SpaceTech company listed on the Abu Dhabi Securities Exchange (ADX: SPACE42), today announced a resilient financial performance for the first half of 2025. The company, which integrates satellite communications, geospatial analytics, and artificial intelligence, reported a normalized net profit of USD 53 million, in line with the prior period, while achieving an increased profit margin.
Despite a 17% year-on-year decline in revenue to USD 226 million, Space42 demonstrated strong operational optimization and strategic execution. Normalized EBITDA stood at USD 112 million, with margins increasing by 2 percentage points to 49%. The normalized net profit margin rose by 4 percentage points to 23%.
The company concluded the period with a robust liquidity position, holding USD 816 million in cash and short-term deposits. Space42 also secured a new USD 0.7 billion Export Credit Agency (ECA)-backed funding facility, underpinned by substantial contracted future revenues of USD 6.8 billion.
Karim Sabbagh, Managing Director of Space42, commented on the results, stating, “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.”
Strategic Pillars Drive Momentum
Space42 reported significant progress across its four strategic pillars:
Space Services Gains Market Momentum: The Space Services segment achieved 2% year-on-year revenue growth in Q2 2025, reaching USD 100 million, primarily driven by double-digit expansion in the Oil & Gas sector. The business benefited strongly from the increasing demand for secure and sovereign communications capabilities within the UAE. Growth is anticipated to accelerate in the second half of 2025 as the recently launched Thuraya-4 satellite commences commercial operations, offering new mobile satellite services for defense, security, and commercial applications. The company also made strides in its direct-to-device (D2D) future space system, with key milestones expected in H2 2025.
Smart Solutions Accelerates Manufacturing and Platform Capabilities: While Smart Solutions experienced underperformance due to the timing of multi-year engagements, it continued to build programmatic capabilities, with new programs expected to come online in the second half of 2025. A primary focus remains on manufacturing and deploying the Foresight system, which includes seven latest-generation Earth observation SAR-based satellites. The development of its GIQ geospatial analytics platform continues, now deployed on the Microsoft Azure Marketplace to address a global market for dual-use geospatial information. These capabilities received the prestigious Future Fit seal from the UAE Government under the UAE Space Agency.
Preferred Partner for Premium Geospatial Data: Space42 launched the Middle East’s first dedicated commercial Synthetic Aperture Radar (SAR) satellite manufacturing facility in partnership with the Abu Dhabi Investment Office (ADIO), enabling sovereign manufacturing of high-resolution satellites. Construction of a High-Altitude Platform Systems (HAPS) manufacturing and R&D facility was completed, aiming to deliver over 20 unmanned aerial vehicles annually by 2026. A Memorandum of Understanding (MoU) was signed with Microsoft and Esri for the “Map Africa Initiative,” a five-year program to produce the first high-resolution, AI-powered base map covering all 54 African countries.
Global Leader in Geospatial Intelligence AI Platform Services: The GIQ platform, the digital backbone for AI-powered geospatial intelligence, continued its scaling and development in partnership with the UAE Space Agency. Its launch on Microsoft Azure marketplace in H1 precedes a full commercialization and roll-out of industry-specific solutions by Q4 2025. Space42 also advanced a joint venture with FADA and EDGE to establish a national geospatial ecosystem, with the legal and operational framework expected to be finalized by Q4 2025.
Global Non-Terrestrial Connectivity (NTN) Leader: In-orbit testing of the Thuraya-4 satellite is substantially complete, with commercial operations anticipated to begin in Q3 2025. This will bring wider coverage, faster speeds, and enhanced capabilities across 16 new products, including IP Neo Broadband and Thuraya Broadband Hotspot, which were launched in Q1 and Q2 2025, respectively. Progress continues on the direct-to-device (D2D) future space system in partnership with Viasat, establishing a shared multi-orbit standard-based 5G NTN open architecture.
Trusted Leader in Secure Connectivity: The Al Yah 4 and Al Yah 5 satellite programs are on schedule and within budget, with Preliminary Design Review substantially complete and Critical Design Review underway. These assets, supported by a USD 5.1 billion, 17-year government contract, are set to enhance national secure communication capabilities and generate USD 300 million in annual revenues from Q4 2026 onwards.
Space42 was formed in 2024 through the merger of Bayanat and Yahsat, with major shareholders including G42, Mubadala, and IHC. The company’s complete financial disclosures are available in the Investor Relations section of its website.
