Secure Waste Infrastructure Corp.

Ladies and gentlemen, welcome to the SES Half Year 2026 conference call. For the first part of the conference call, the participants will be in listen-only mode. During the question and answer session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. I will now hand over the conference to Christian Kern, Head of Investor Relations. Please go ahead, sir.

Thank you, Guy Young. Good morning, everyone, and thank you for joining us today. It is my pleasure to welcome you to SES first half 2026 results call on behalf of our management team. Before proceeding with the management presentation, we would like to inform you that the financial information contained in this document have been prepared under international financial reporting standards. As usual, this presentation may contain announcements that constitute forward-looking statements which are not guarantees for future business performance and involve risk as well as uncertainties. Also, certain results may materially differ from those in these forward-looking statements due to several factors. We invite you to read the detailed disclaimer on slide two of this presentation. The presentation is also available on our company webpage. Today, I'm joined by our CEO, Adel Alsaleh, and our CFO, Lisa Pataki, who will take you through the presentation followed by a Q&A session. Adel, without further ado, over to you now.

Very good. Thank you, Christian. Good morning, everyone. First half of the year performance is in line with our expectations. Although Q2 performance was softer than expected, mainly due to the timing of a couple of contract awards, the fundamentals of the business remain strong. supporting our confidence in the year ahead and our reiterated 2026 financial outlook. We also showed continued progress on integration and synergy capture while maintaining disciplined execution against our long-term priorities. Let's start with slide number three. Our vision remains clear and we continue to deliver it. We're building a leading space solutions company evolving beyond traditional satellite connectivity into an integrated provider of mission-critical solutions. We're delivering on our strategy and creating long-term value for our customers and shareholders by combining our multi-orbit network, extensive ground infrastructure, our software services, and a broad ecosystem of partners. At the same time, we continue to invest in innovation and smart diversification. A clear example of this strategic execution is our role in the IRIS Square program. IRIS Square is Europe's secure sovereign constellation, which reflects both our commitment to innovation and smart diversification into high-value sovereign connectivity solutions. IRIS Square one-to-one negotiations are in final stages. As part of our sustained financial strength and vision, is our focus on synergy delivery, where we're making excellent progress, and our disciplined financial management and execution. Our C-band clearance incentives give us a clear path to deliver, strengthening our balance sheet. Now let me share with you further, I will share with you more details of Iowa Square and C-band clearance in the following slides. Moving to slide number four. I'm giving you an update on IRIS Square Program, Europe's Secure Sovereign Constellation. IRIS Square is a strategically important program for SES and a cornerstone of Europe's future secure and sovereign space infrastructure. As the largest European government space and defense initiative to date, the program aligns strongly with our long-term strategy and through its balanced public-private partnership structure, Rendezvous One negotiations are now in their final stages. SES is working very closely with the members of the SpaceRise Consortium and the European Commission to validate key terms and conditions, including project costs, supply chain arrangements, and technical requirements for the design, delivery, and operation of the highly secure, resilient multi-orbit network. SES, along with its consortium partners, will build and operate Europe Secure Space Network through a constellation of LEO satellites and 18 MEO satellites delivering secure pole-to-pole coverage. The program is well underway and targeted operations will start in 2030. The IOSquare program is complementary to our next generation MEO steel roadmap, strengthening our position at the center of Europe's secure connectivity ecosystem for decades to come. Now let's move to slide number five to discuss the upper C-band clearance in more detail. The FCC published its report and order for the upper C-band clearance on July 24th. It establishes transition deadlines of December 2030 and June 2031 for repurposing 160 megahertz of the upper C-band spectrum for wireless services in the contiguous United States. The reported order adopts a framework for the upper C-band clearing that is similar to the one we adopted for the lower C-band transition. Specifically, satellite operators will receive reimbursement for all reasonable costs to clear the 160 megahertz and to maintain sustainably the same service for its C-band customers. And total incentive payments of 6.3 billion U.S. dollars of which approximately 5.6 billion U.S. dollars are allocated to SES contingent on successful on-time spectrum clearing. Specifically, we'd have to clear the top 75 partial economic areas in con U.S. by December 30th, 2030 and the remainder by June 30th, 2031. We have developed a compelling solution that enables us to protect our C-band customers by transitioning them to a new hybrid KU and C-band solution augmented by terrestrial recovery network that will provide them with sustainably the same service as they enjoy today. Similar to the lower C-band clearing program, reasonable and necessary upper C-band transition costs will be reimbursable through the clearinghouse. meaning these costs are not expected to impact our long-term capital allocation and leaving the full amount of incentive payment as the potential economic benefit upon successful execution. In 2026, CBAN-related capex are expected to be between 100 to 150 million euros fully reimbursable over time. We remain fully committed to working cooperatively with the FCC and all stakeholders as the process progresses to clear the spectrum and transition our customers to equivalent services in the KU band with a timeline set by the FCC. The proposed framework significantly de-risks the upper C-band program and provides SES with a clear de-leveraging path by providing greater clarity on the implementation timeline of 2030-2031. The reimbursement mechanisms, the technical approaches that may be considered reasonable, and the incentive payments for time to clearing. We have already began taking steps to meet the FCC's deadlines by engaging with the satellite manufacturers to order long-term lead items. Consistent with our financial policy, CBAN proceeds would first be prioritized towards deleveraging to our net leverage of target of 3.0 ex-hibita or below, further strengthening our balance sheet. Beyond that, at least the majority of future exceptional cash flows will be prioritized for the shareholder returns. In line with the capital allocation framework, we have consistently communicated. Moving to slide number six, which gives us a brief update on the execution of the Neosphere program. MIRSA is another pillar of our long-term strategy with softly defined payloads at the heart of its differentiated architecture. Today I'd like to give you a glimpse of into our new Luxembourg Space Campus facility where we will develop and manufacture the payloads and to the assembly integration and test of the spacecrafts. Operations are progressing very well. with the first production hall dedicated to electronics assembly on track to be fully equipped and operational by mid-August. That's in a couple of weeks. On July 13, we successfully began production of the first printed circuit boards and box assemblies for our onboard processor unit, making an important milestone in the industrialization of these advanced technologies. We expect to begin installing critical test equipment and chambers in the second hall during August as well. This hall will house our testing and qualification capabilities, enabling us to validate and certify payloads, antennas, and bus performance to the highest standards. These halls are part of our pilot line, which will be foundational to the development of the mother fab, i.e. the brand new manufacturing facility which is 15,000 square meters that we're building in Cookeshire in the south of Luxembourg. With the development progressing smoothly, production and testing of all Pathfinder 2 payload is expected to commence in mid-September. A reminder to everybody that Pathfinder 1 is already flying in space undergoing planned in-space testing. This pilot line facility will play a central role in the development and manufacture of our innovative high-capacity payloads from Neosphere and Iris Square, while also supporting the assembly, integration, and test of our next-generation satellites. By bringing these critical capabilities in-house, we are strengthening our technological leadership, building on our vertical integration strategy, accelerating innovation cycles, reducing costs, and building the foundations for future growth in secure and high performance connectivity solutions. MioSphere is targeted for operation by 2030 and designed to significantly boost our Mio network capacity. MioSphere is complementary to the Iris Square constellation. Now let's move to slide number eight and our first half 2026 business highlights. These results are shown on a reported basis with H1 2026 being fully consolidated with Intelsat. The figures are compared year-on-year to H1 2025 SES standalone reported numbers on a constant FX basis. In a few minutes, Lisa will also share like-for-like comparisons. H1 2026 performance is in line with our expectations. despite a softer than anticipated Q2 following a strong start in Q1. H1 2026 revenue was 1.602 billion euros up 72% year-on-year driven by networks growth of 89% year-on-year. Again, on a reported basis. H1 2026 adjusted EBITDA of 725 million euros was up 47% year-on-year with a margin of 45.2% on a reported basis. Capital expenditures for first half 2026 were 444 million euros with full year 2026 still expected to be front-loaded while we continue executing on planned capex synergies. H1 2026 adjusted free cash flow of negative 130 million euros reflecting the timing of the investments and supporting future growth. In H1 2026, we secured 1.2 billion euros of renewals and new customer contracts with a majority coming from our growth segments. This has supported our gross backlog of 6.4 billion euros. Q2 software then expected performance was driven by timing of a couple of awards. One of these awards were received very late in the quarter from our government and defense customers, and others in government and defense and aviations we're working to secure in second half of the year. Aviation continues to see some timing differences between the onboarding and decommissioning of airline customers, as well as lower ESAC kit shipments in Q2. These were mainly driven by seasonality and are expected to wrap up in subsequent quarters. In addition, continued pressures and fixed data and ongoing structural declines in media also contributed to softness in Q2. With solid performance in Q1 and softer Q2, our overall H1 performance remained in line with our expectations. During the first half, we focused on securing commercial wins and strategic contracts that are expected to contribute to growth in the second half of the year. providing greater visibility for our performance for the remainder of 2026. Let me walk you through our second half drivers on slide number nine. We will enable our second half priorities to focus and discipline execution across all functions. Let me start with governance and defense. As a reminder, The U.S. government DOGE cuts have impacted our year-on-year business, first-half performance, and are now largely behind us. We have secured the U.S. Space Force Protected Tactical SATCOM Global Contract Award, called PTSG, as a prime, which will provide incremental revenue in H2 versus H1. The award of the U.S. Space Force Blanket Purchase Agreement further enhances the revenue opportunity pipeline. In addition to these two large contracts, we secured several additional contracts in Europe and the U.S. that will contribute in second half of the year. And finally, Irish Square Rendezvous One is in its final stages. Overall, we expect solid revenue in second half of the year for our government and defense business. In mobility, in aviation, the solid commercial momentum continues, having secured around 200 new tails in first half of the year, which will support second half ramp. There's also one particular larger contract delayed from Q2 that we now expect to materialize in second half of the year. We will also continue installing our growing ESAP backlog. In media, prior year Brazilian customer bankruptcy related headwinds are now largely behind us. Several multi-year contract wins and renewals secured during H1 will support H2 performance, including contract renewals well beyond the next decade. Business remains on track for the previously expected mid single digit annual decline for the full year, implying a stronger second half performance. In fixed data, market conditions remain challenging, despite restructuring actions we have taken. We are successfully retaining key customers maintaining a disciplined focus on customers and segments was building a bridge towards future capabilities. In the near term, we do not currently anticipate a significant change in the trends. I'm pleased to confirm that we continue delivering hour-on-hour synergies plans in the first half of the year, achieving a reduction of 16% year-on-year in staff costs, and overall OPEX was down 9% year-on-year, with synergy delivery expected to produce further results to second half of the year. With this backdrop, we reiterate our full year 2026 outlook supported by stronger second half revenue profile and continued cost discipline. Let us now turn to slide number 10 and our key customer renewals and strategic wins throughout the first half of the year. I mentioned a few of them already, but let's start with media. Satellite remains the most efficient and reliable platform for large scale content distribution During the first half of 2026, we secured several important contract renewals, including the extension of our long-standing relationship with ARD beyond the next decade and a new multi-year agreement with ABP Network covering India and South Asia. We also renewed an important direct-to-home agreement in India with DISH TV, extending direct-to-home contracts with Sky Mexico, and concluded important extensions in the U.S. for domestic and global distribution with some of the largest U.S. broadcasters. Overall, these key contract renewals are not only supporting second half performance and long-term visibility of our immediate business, but also reinforcing the continued value of satellite for premium content distribution. I'm also proud to announce that SES enabled live coverage of the Open Championship and Roald Bergdahl, distributing IMG's Gulf World feed to more than 50 broadcasters across Europe, Americas and Asia. In government and defense, demand for secure, resilient and mission critical communications continue to underpin performance. This was demonstrated by the selection of SES Space and Defense, the prime mission execution for the U.S. Space Force PTSG program as I described earlier. and secured an award under the US Space SST five-year BPA for managed KU-band satellites, which encompassing FlexMove, FlexGovernment Secure and FlexAir solutions. So this is overall encompassing with all of our capabilities. These wins demonstrate the increasing relevance of our solution and our trusted position with sovereign governments and defense customers. In aviation, commercial momentum remains strong as we expanded our footprint with both existing and new airline customer, having added around 200 new aircrafts to our pipeline. During the first year, we added Viva, Avianca, and Lifetime Airlines to our surf aircraft portfolio, further validating the attractiveness of our multi-orbit, electronically steered antenna solution and I are reinforcing our position as a leading in-flight connectivity provider serving millions of passengers around the world. In maritime, performance was in line with expectation as we continue to execute the restructuring of our wholesale business while navigating the anticipated competitive headwinds. We remain a leading provider of maritime connectivity and during the first half of the year secured important renewals including to Tethio Global, demonstrating the continued value of our services and the strength of our longstanding customer relationships. In fixed data, we continue to execute our transformation program we described in the beginning of the year while navigating the anticipated market headwinds. We remain focused on serving high-value enterprise, network, and global energy customers by leveraging our global infrastructure and differentiating multi-orbit capability bridging towards future network capabilities. Throughout H1, we signed important strategic partnership that will drive future revenue streams, for example, with Sharp in Japan and Tim in Brazil. With this, I'm going to hand over to Lisa to discuss further details of our H1 2026 financial performance.

Thank you, Adele. Good morning, everyone. Before I turn to our first half 2026 financial performance, I'd like to remind you that the press release available on our company website includes supplementary financial information with life-for-life revenue per vertical and adjusted EBITDA at the group level, as if the Intelsat transaction had consolidated from the 1st of January 2024. As always, our IR team remains available to address any questions you might have. Let us now turn to slide 12 for our financial highlights. In the first half of 2026, the company reported revenue of €1.602 billion, resulting in a growth rate of 72.4% on a reported basis compared to the same period last year. On a like-for-like basis, with constant foreign exchange rates, first half 2026 revenue was down 5% compared to the first half of 2025. This outcome was largely as expected, with some softness in Q2, as Adele mentioned, driven by the timing of awards, one in our government and defense business, which was received late in the quarter, and a couple of others in government, aviation, and media that we still expect and will contribute to growth in the second half. Mobility remained a key source of strength in the first half. Aviation Performance benefited from the favorable contract restructuring in Q1, which will improve network utilization and support future commercial momentum as previously reported. This is partially offset, as we expected, by timing differences between the onboarding and decommissioning of airline customers, as well as lower ESA shipments. As we look to the second half, We expect ESA shipments to increase each quarter, and importantly, we continue to secure new wins, adding about 200 tails in the first half. In government and defense, as previously discussed, the first half comparison to prior year was impacted by the effects of DOGE-related reductions on the U.S. government business, which were implemented in the first half of 2025. Global government and defense delivered a solid first half, We continue to see demand for our secure space-based solutions supported by several strategic awards driven by increasing defense budgets in both the U.S. and in Europe. Within fixed data and media, performance was broadly in line with our expectations. Both businesses continued to experience volume declines during the first half. Media was still impacted by the Brazilian customer bankruptcy in the first half when compared to the prior year, while broader industry dynamics remain consistent with our expectations. Trends are expected to improve in the second half on the back of major contract renewal. Adjusted EBITDA in the first half of 2026 was 725 million euros, showing growth of 47% year over year on a reported basis with a margin of 45.2%. On a life-for-life basis, first half 2026 adjusted EBITDA was down 6.2% compared to the same period in 2025. This included the favorable contract restructuring in aviation in Q1 2026 and lower operating expenses resulting from our integration activities. These partially offset the following underlying headwinds. In aviation, the prior year included a contract modification from Intelsat Legacy in Q2 2025, making it a difficult comparison in Q2. Additionally, as previously discussed, there continues to be some timing differences between the onboarding and decommissioning of airline customers. In government and defense, margin compared to prior year was impacted by timing impacts due to contract rationalization and the U.S. government business, primarily driven by Doge reductions, as previously discussed. We expect solid growth in the back half of the year, supported by several recent awards, as well as a strategically important award for Protected Tactical Satcom Global, or PTSG. In addition, as mentioned, Iris Squared Rendezvous One is making progress. As we have discussed before, mix continues to impact the overall company margin, driven by declines in the media and fixed data verticals. With both businesses having been subject to market-specific headwinds, we are seeing early signs of stabilization in media and expect a more favorable trajectory in the second half. Importantly, our synergy realization remained solid in the first half and helped mitigate the impact of business mix. We delivered a 9% reduction in total operating expenses with a 16% reduction in staff costs. Looking ahead to the second half, we expect growth in both revenue and earnings, driven in large part by our government and defense business, both from recent US and European awards. Our media business is expected to improve year over year in the second half, with recent awards after quarter close contributing to the improvement. In aviation, We expect stronger ESA shipments in the second half and additional awards to drive both revenue and earnings. With clear visibility into the second half growth pipeline, we are reaffirming our full year 2026 financial outlook. Moving now to slide 13 to give a more detailed view on the financial performance of our vertical segments. Media's first half 2026 revenue of 571 million euros accounting for 36% of total revenues increased by 46.5% versus prior year on a reported basis, offsetting structural declines. On a like-for-like basis, media was down 10% year-over-year, reflecting ongoing structural declines due to capacity optimization in mature markets and the Q1 impact of the Brazilian customer bankruptcy. Despite these pressures, media remains a highly profitable and cash-generative business. Commercial momentum remains solid, with approximately €402 million of renewals and new business secured during the first half, contributing to a backlog of €2.9 billion and providing strong long-term revenue visibility. We continue to see resilience in key segments such as free-to-air, free-to-view, and sports and events, while recent long-term renewals, including the extension with ARD through 2039, an expanded long-standing partnership with Caracol Television, and a multi-year agreement with ABP Network, reinforce the strength of our customer relationships and the enduring value of satellite distribution. Looking ahead, we expect a more favorable trend in the second half as the impact of the Brazilian customer bankruptcy eases and recent commercial awards drive improved performance. With a book to bill above 1.0 in Q2, we are off to a good start for the second half. Moving to slide 14 and the networks business. Networks first half 2026 revenue of 1.018 billion euros representing 64% of total revenues were up 89% on a reported basis compared to the prior year. On a like-for-like basis, networks revenue decreased by 1.5% versus the prior year with growth momentum in mobility and government and defense partially offsetting fixed data declines. In mobility, we saw first half revenues of 421 million euros, 169.9% higher on a reported basis and up 5.1% on a like for like basis year over year. This growth was driven by aviation, including the favorable contract restructuring in Q1. As I mentioned, we continue to secure new customers and expect a strong second half with significant ramp in ESA deliveries. Government and defense first half 26 revenues of 381 million euros were up 41.9% year over year on a reported basis. On a light-for-light basis, government and defense grew 1.9% year-over-year, driven by strong demand in global government, particularly in Europe, partially offset by year-over-year impacts to the U.S. government business, resulting from DOGE reductions, which materialized after the first half of 2025, and the timing of U.S. government contract awards. We expect recent awards to contribute to growth in the second half of the year, including PTSG, and additionally, we expect several new awards like Iris Squared. As we discussed, the Iris Squared Rendezvous One is progressing well and nearing completion. As I mentioned, demand for secure and sovereign connectivity across Europe remains strong, driven by increasing geopolitical priorities and government-invested Investment in Resilience Communications Infrastructure. Lastly, in our Fixed Data business, revenues in the first half of 2026 totaled €216 million. This represented a growth of 89.3% year over year on a reported basis. On a life-for-life basis, revenues declined 16.6% given the competitive headwinds in this business. In the first half, We continue to see commercial momentum from our network segments driven by continued demand for space-based solutions with a gross backlog of 3.5 billion euros underpinned by 825 million euros of new business and renewals in our network segments. Importantly, backlog has grown by 200 million euros since the end of the first quarter from 3.3 billion euros to 3.5 billion euros which provides confidence in the ramp we expect in the back half of the year. Turning now to slide 15 for a detailed view of our capital allocation priorities and our debt maturity profile as of June 30th, 2026. Our combined like for like adjusted net debt to adjusted EBITDA ratio stands at 4.4 times versus 4.1 times in the previous quarter. reflecting mainly timing effects of cash flows and lower 12-month trailing adjusted EBITDA. The net leverage ratio includes cash and cash equivalents of €703 million, excluding €215 million of restricted cash, which is related to the SES-led consortium's involvement in the IRA Squared program. We continue to benefit from a debt profile with a weighted average cost of around 4.2%, approximately 72% of debt at fixed interest rates, and an average maturity of roughly five years. This structure provides strong protection against market volatility, supports financial flexibility, and enhances visibility over our funding requirements. Our capital allocation framework remains disciplined and unchanged. We are focused on reducing leverage and strengthening credit metrics over time, while preserving ample liquidity and maintaining flexibility to address future financing needs as they arise. During the period, we continued to proactively manage our debt maturity profile. In the first half of 2026, we repaid approximately $1.2 billion of debt principal, including our $650 million senior bond and 525 million of deeply subordinated securities. This included approximately 208 million euros repaid in the second quarter, largely related to the call of our perpetual NC26 hybrid bond, which took place on May 27th, 2026. These actions together with our continued access to diversified funding sources position us to address upcoming maturities pursue refinancing opportunities when attractive, and support the execution of our strategic objectives. Consistent with what we have previously communicated in our disciplined capital allocation framework, the usage of the net proceeds post-CBR payments related to the CBAND report and order will first be directed toward further deleveraging with the objective of reducing net leverage to 3.0 times or below. As previously stated, once the company meets its net leverage target, at least a majority of future exceptional cash flows will be prioritized for shareholder returns. Now turning to our cash flow performance in the first half, SES generated positive adjusted net operating cash flows of 522 million euros, excluding 186 million euros of payments in connection with the Irish Squared restricted cash, and 30 million euros related to restructuring and outflows associated with the implementation of mergers and acquisitions. This represents an increase of 42 million euros compared to the same period last year. Adjusted free cash for the first half was negative 130 million euros, reflecting the timing of capital expenditures primarily related to our MPower satellites expected to launch in Q3 as well as the timing of collections. It is worth specifically noting that shortly after the close of Q2, the company received 205 million euros as an upfront payment from a global government customer. In the first half, capital expenditures totaled 444 million euros. And as a reminder, our CapEx profile for the year is front-end loaded due to the timing of cash flows for our MPower satellites, as previously mentioned. We continue to execute our CapEx plans with discipline. As you will recall, in Q1, we canceled two GEO satellites that did not meet our IRR thresholds. We remain aligned with our CapEx outlook of around 700 million euros for the year, excluding C-band. C-band related CapEx for 2026 is expected to be around 100 to 150 million euros. And as mentioned previously, it is important to note that C-band CapEx is reimbursable over time. We are disciplined with regards to our investment to drive strategic growth in the business while continuing to deliver on planned CapEx synergies and fleet and ground infrastructure optimization. In addition, we continue to make progress in our O3B Empower insurance claims having collected 15 million US dollars equal to roughly 13 million euros this quarter, bringing the total proceeds to 218 million US dollars to date. As SES evolved from a traditional satellite operator to a space solutions company, we are increasingly delivering integrated networks, services, and end-to-end solutions that expand our addressable market and create long-term revenue opportunities. This transition is driving a change in our revenue mix, with a greater proportion of development, integration, and equipment-related revenues in the initial phases of customer programs. While these activities typically carry lower margins upfront, they establish the foundation for recurring, higher-quality service revenues over the life of the contracts. We remain focused on executing our verticalization strategy capturing integration synergies and allocating capital in a disciplined manner to support sustainable long-term growth, profitability, and cash generation. I'd like to thank our employees and partners for all of their hard work in the first half and continued dedication to meet our financial goals for the year. With that, I'll hand it back over to Adele for his closing remarks.

Great. Thank you, Lisa. Let's go to slide number 17. We're confidently reiterating our full-year financial outlook for 2026. Performance in the first half reflects a strong Q1 and a softer than expected Q2. As mentioned in previous results call, we had expected to see some quarterly variation driven by well-understood dynamics. Importantly, the key drivers underpinning our outlook remain firmly in place, and we expect a stronger second half of the year supported by continued commercial momentum across mobility and government and defense with important contracts secured in H1 and the contribution from new customer deployments ramping through the remainder of the year. Media declines are expected to improve and we will no longer have the Brazilian customer bankruptcy headwinds and are anticipating meaningful long-term contract renewals. We continue to execute with discipline across the business. integration and efficiency initiatives remain on track. And we continue to deliver our synergy objectives while maintaining a strong focus on operational execution and customer service. As such, we reiterate our full year 2026 outlook of stable revenue and stable adjusted EBITDA year on year. At the same time, capital expenditure remains well controlled and aligned with our strategic priorities, supporting the future growth while preserving financial discipline. Hence, we reiterate our 2026 capital expenditure forecast of around $700 million, including Iris Square and the first phase of Miosphere, at the US dollar exchange rate of 1.20. We continue building our capacity and expect O3B Empower Satellites 11, 12, and 13 to launch in Q3 2026. I'd like to conclude today's presentation with slide 18. Our priorities remain clear, discipline execution, operational excellence, and long-term value creation. Looking ahead, we'll remain confident in a strong operational delivery in the second half of the year, supported by continued commercial momentum. Our focus remains firmly on execution, delivering our synergy targets, maintaining capital expenditure discipline, and positioning the company for sustainable growth. As I mentioned earlier, FCC's report and order for 160 MHz C-band clearing in the U.S. provides us with a clear path to deleveraging and sustained financial strength. Irish Core is a landmark European secure connectivity program and is highly complementary with our MIRASPHERE initiative. Together, With the launch of the last O3B Empower satellites expected in 3Q2026, these investments represent a step change in capability and reinforce our innovation and verticalization strategy. Finally, we're pleased to announce that SCS will host the Capital Markets Day in Luxembourg on December 9th, 2026. This will be a unique opportunity to take you on our transformational journey to space-based solutions companies. showcase the increasing innovation and verticalization of our technology value chain and share our roadmap for sustainable growth and shareholder returns. We remain confident in our future, focused on execution, and highly committed to delivering value to our customers and our shareholders. With this, we're ready for your questions.

Ladies and gentlemen, if you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six. Please limit your questions to two. The first question is coming from Akil Dasani from JP Morgan. Your line is now open. Please go ahead.

Hi, good morning. Thanks for taking the questions. My first question is just to better understand the phasing of the H2 growth that you're alluding to. Adele, as you mentioned, Q1 was better expected, Q2 was softer, but I guess that volatility maybe makes it a little bit difficult for us to understand how to think about the shape of H2. So could you maybe help us understand When we think about the mid single-digit revenue need but dark roads you need to achieve in H2, how should we think about the phasing of that Q3 to Q4? Is it more back-end loaded, front-end loaded? What are the key puts and takes just to help us more concretely understand on numbers where we should come out? So that's the first question. And the second question was on the C-band process. Your comments are very helpful in terms of helping us understand prioritization of deleveraging and then capital return. but I guess the challenge is the capital from this is not likely to come to SES for another five years so there's quite some time before we have visibility on that actual money coming in and then obviously you utilising that capital in the ways that you've committed to and I guess at the same time the industries maybe had a bit of a checkered history around utilization of capital and pivots into M&A. So I wondered if you could maybe help us understand what you can do to give us more concrete visibility around that capital. Is there anything you can do to commit earlier, do something that would give us let's say more visibility rather than having to wait the full five years before we know exactly what ends up happening? Thanks a lot.

Okay, very good. Akhil, thank you for the two questions. Let me tackle the first one and then we'll go to the CBAN conversation. Look, you've been following us for a long time, right? We do have this seasonality in our quarters, right? And they are driven by contracts that we sign, renewals that we do. And the contracts, you know, we have variation of contracts, right? There are contracts that yield revenue almost immediately when we sign them because customers pay us upfront We have milestones up front. And there are contracts that take time, right? I mean, we sign up to a contract. We deliver certain milestones. It takes a little bit of time. And then we have a milestone where we get paid and we can recognize the revenue and the profit associated with it. So this is what makes our quarters a little bit seasonal, right, when you think about it. Now, the way you should think about second half is the big ramp driven by a couple of defense contracts will happen in fourth quarter. So fourth quarter will be a bigger quarter than Q3. We know that. We already know that. We mentioned the contracts. You know, PTSG, we keep talking about it. And PTSG was zero first half of the year. It's going to be a significant number for us in the second half of the year. And it will ramp gradually in Q3 and then really go through a big boost in fourth quarter because of the milestones that we have, which we are very confident in. But the same thing with Irish Square. As we conclude rendezvous one, which we anticipate to happen quite quickly, we're very happy, by the way, with the progress with the Commission and European Space Agency. It's been a while as we've been working on it, and the reason it took a while is we took our time. We were very diligent, us and our partners, the European Commission, the European Space Agency. We've all been committed to do it, but we needed the time to make sure that the terms are right, that the costs are spread correctly, that the contributions from the private sector and the public sector are balanced correctly, and now it's gonna ramp. So all the revenues that you've seen were more preparations for this point in time, and it's gonna start ramping because we're gonna start delivering the project milestones that we're staffed to do and ready to go. So think about it like that. Q3 will be a good quarter, but the Q4 is gonna be where we expect The Ramp to Help. So I hope that's helpful in how you should think about that. There is a big contract, we mentioned it already, in Arrow, that we're not going to rush. And then one thing about SCS, we don't rush our contracts, and I don't want to be disrespectful to the community that's on the phone, just to make a quarter. We let them fall where they need to fall as long as we get what we need to get. in order to be comfortable with the value and the quality of the contract. So that contract that I'm talking about could skew either Q3 or it could skew Q4 even further, right? So just a heads up for that one. Now look, on the C-band, so a couple of things. So first of all, look, this is a really good outcome. We have worked very closely with the FCC. I mean, I am impressed. with the speed at which FCC really worked through this. I mean, everybody was expecting this report in order to be sometime in fourth quarter. The speed, the determination, the focus that FCC put in it, and their very balanced approach. I mean, they understood what they needed to do in terms of creating value in the U.S., but they understood, you know, we were a key stakeholder that we needed to partner with them to make it happen. So we are satisfied both with the incentives numbers, with a scheme of reimbursement. It has improved versus last time. And we expect the speed to continue to be better than what it was in the first clearing. Okay, it's not five years, it's four years, right? 2030 is four years from now, right? If you count that we're at the end of 2026 already. Our confidence is high, Akhil, in being able to meet the deadline. and I want to be also clear that the targets that FCC set were targets that we worked with them on. It wasn't kind of unilateral or independent assessment. We worked together with FCC and other stakeholders to figure out what's the most logical way to do this. And there are opportunities to accelerate, but I think it's too early a cue right now to declare those. Let the project run. We're going to set up the clearinghouse by the end of the year. The auction with mobile operators used to happen in the first half of 2027. Let those milestones progress. And then we'll see whether we're able to do it. Now, one thing we did do very quickly, as soon as the report and order came up, is contract the manufacturing of the satellites. We have to launch seven new satellites in order to be able to do the clearing, and that is the longest lead item in the whole transition. So we contracted immediately in order to make sure that we've got the long lead items locked up, that we selected the manufacturer, we're negotiating very aggressively for months before that, and waited for the report and order before we go ahead and contractually go for it. So we are very happy with that, right? And we've got very strong partners who know how to do these satellites, who have done it before. We selected technologies that are existing technologies rather than something that needs to be invented. And that gives us a lot of confidence, right? So, and the last item I want to say here on expense reimbursement, I mean, the FCC made it very clear in their reporting order, they want to minimize interest expense. Minimizing interest expense means you have to accelerate the clearinghouse approvals for expenses. That's what it means. That's what that language says, right? So the clearinghouse has a clear instructions from the FCC that the process needs to be a lot more efficient and that will minimize our need to go ahead and get financing for those expenses and be able to claim them faster. and optimize our balance sheet going forward. And look, our experience from the last clearing, we've got, I don't remember the exact number, but we got the vast majority of the expenses we needed to claim. There were no expenses that were less stranded for us. And we expect the same thing to happen this year. So Akhil, I hope, I went a little long here, but I hope that that was insightful and I answered your questions.

No, it was extremely useful. Thank you. I mean, just one very quick clarification. I mean, it's maybe a bit early to comment on this, but I guess just to see if there's any thoughts you have around it. Could there ever be value or a rationale for maybe collateralizing the incentive payment that you're due to receive? Because obviously it's a very large number relative to the value of the group. There's obviously a huge amount of value being created here. Could that make sense to pull forward Thank you.

Only if it makes financial benefit to our company and our shareholders. So again, too early to declare, but if we can find a way where we can accelerate it and have a net benefit for the company, we will explore it for sure. But let us get through the first milestones first, right, which are very critical for the next six months, the next nine months, which is what we need to focus on.

Great. Thank you.

The next question is coming from Alexander Petters from Bernstein. Your line is now open. Please go ahead.

Efrain, thank you for taking my questions. I just have a few. So the first one, again, on C-band, could you just help us understand if you're actually working actively on accelerated clearance? that would move the proceeds a little bit to the left or in your favor. Is that something that is being worked on actively with everyone, all the protagonists? And could you see also any sweeteners from operators? Is that something that you envisage? Same thing as you had, I think, with Verizon in lower C bands if you do a bespoke fast clearance. That will be my first question and the second one on IRIS2. How close are we to Rendezvous One? Is this a third quarter event or could it drag on a bit? And if you could help us understand to what extent that will drive your H2 balance as well that you are modeling currently. Thank you very much.

Thank you, Alex. Look, on the CBAN, we absolutely want to clear it as quick as possible. It's to our advantage, right? There is no incentive for us to be later. So we are, I mean, we're supposed to submit the whole transition plan to FCC by the end of the year, which we will. And part of that is, you know, trying to go as fast as we can. As I said, answering Nikhil, the longest lead item is always the satellite. So we have them now contracted. We've got the teams running very hard. We've got three partners that are working on the satellites and spread it in order to spread the risk and make sure we have a little bit of competition. We have incentive for early delivery of these satellites that we have agreed with our partners. And like I said, we selected with prudently selected technologies that we have high confidence in. and not something that needs to be invented or, you know, new to space, if you will. So yes, the answer to the first question, we absolutely want to do it as fast as possible and we will do everything we can to accelerate that. Second part of the first question, you know, will the operators and mobile operators want to accelerate and sweeten some of the incentives, et cetera, too early to tell. I mean, I know that just talking to AT&T, Verizon, T-Mobile and understanding their public plans around 5G and 6G deployment, this is a very valuable spectrum. They all want to accelerate their deployments. There's a lot of important economic growth associated with the spectrum for the US, which is why SEC started this whole process. So we don't know yet, we don't have anything specific from them, We're open, so if they listen to these transcripts, we're open to the conversation. But let's see, Alex, like I said to Akhil, let's just, let's not get ahead of ourselves, right? The objective and the alignment of interests are very clear. We want to do it faster, as fast as we can. The deadlines that FCC set are reasonable and agreed with us. It's not something that was forced on us. It's something that we worked very closely with FCC to come up with these deadlines. and it's in everybody's interest to get it done as quick as we can. So let's leave it at that. No, I would swear, Alex, we're very, very close. I mean, and you should be able to gauge this with my comments. I mean, when we did the first quarter announcements, we were in the midst of these difficult terms and conditions negotiations and I was very cautious about declaring victory or signaling that it's close. I am very optimistic. The Commission did an incredible job in keeping the focus, working. I don't know if you've all seen it, but Poland came into Iowa Square. That's a big deal. Poland, I think it's public, how much money they put in. They decided to put in 430 million euros towards meals in the program. The Commission signed that agreement with Poland, and we signed our MOU with Poland that goes beyond and Iris Square and collaborating together around building space capabilities for Poland. So, you know, we are very, very close. We are not weeks away. We are days away. Right, Alex? So let me leave it at that before I upset the Commission because they are the customer and they're the ones who decide when to announce things. But we are very optimistic and supportive of this program.

That's great. Thank you very much. Can I just have a very quick follow up on launches? We hear that SpaceX is retiring Falcon 9 in favor of Starship and will progressively retire it. What does this mean for your launch plans and for the industry at large? Is there any disturbance in the process that you anticipate or is it going to be smooth? Thanks.

Alex, look, we all got spoiled, to be honest with you, over the last few years having this reliable vehicle to access space, right? So we've all benefited and you all remember that SES was the first commercial operator to be on a Falcon 9 and we were the first commercial operator to be on a reusable Falcon 9. So we have a deep partnership with SpaceX and so on. So we're watching this very carefully. We don't know, we don't have any specifics yet on what the plans are. but we've secured the required launches that we need both for the C-band satellites, the C-band clearing that's secure. We also secured the early stages for IRIS Square and for our NEOsphere launches. The industry needs to evolve quickly. We need, in addition to SpaceX that has helped the entire industry over the last five years, we need others to increase their cadence. So we're working with Arianespas, they are a very good partner of others who are coming to market. So I think the launch market is gonna see an incredible evolution over the next five years. And we'll see how Starship goes and we're all eager also to be customers of Starship. So let's see how that evolves, but I am, I'm not worried about the launch capabilities, but it is not as straightforward, if you will, as it was before. You've got to work on it. You've got to secure it. You've got to have the balance sheet to be able to get it locked up. And we're in a fortunate position to have that. So that's how we see it.

That's great. Thank you very much.

The next question is coming from Paul Sidney from Barenburg. Your line is now open. Please go ahead.

Thank you very much. Good morning. Thanks for taking the questions. Just two, please. Just coming back to the first question we had on the call, the rebound in H2, I was just wondering, is this revenue already contracted or does it rely on contracts being signed over the next few weeks and months? And I'm guessing the answer to this question is no, but is it possible to break down the the elements that you've picked out that will boost H2 in monetary terms. Can you give us a feel for the Euro amounts for the PTSD contracts, for example? And just secondly, a real big picture question, post-SpaceX IPO, the additional disclosure that we've got on the company, has anything surprised you in terms of adjustable markets or SpaceX's capability. Just anything that struck you from the additional disclosure we got from SpaceX would be really helpful. Thank you.

Thank you, Paul. So we tried in my section of the presentation to give you, and Lisa as well, so we enforced it, one of the drivers of H2. So we will not give you an individual lineup. That wouldn't make sense. But if you think about how much of it is contracted and how much of it is to be contracted, the majority of it is already contracted. So things like PPSG is an example. The reason we keep bringing that up is because it's a significant contract ramp up in the second half of the year. And other government and defense contracts, these are all done. Right. And like I said, we have a and in the capital markets, they will go much deeper in explaining the profile of the company going forward. Right. And I tried to explain that we have various contract structures that some will recognize revenue quickly. Some require milestones to get there. Some are existing and continuing delivery of the complex. So majority of the contracts for the second half are contracted. But there are a couple of swingers that sit in this. Like the Arrow contract that I kept talking about. You know, Iowa Square. Iowa Square is, you know, as soon as the contract is signed, it's, you know, it is going to generate the next milestones and the next work that we need to deliver before the end of the year. So majority are contracted. There are a few that need to close. and media, by the way, done a great job of all renewals. So they're pretty much done right then in terms of what needs to happen for the second half of the year. That's why we feel pretty good about media business getting to the profile that we keep talking about, which is mid single digit decline kind of a business, which means second half will be stronger than what you've seen in the first half. Look, in terms of SASEX disclosure, I wouldn't say there were there were a lot of surprises for us, whether it's in their V3 Constellation for Starlink or their launch strategy and what they want to do. Clearly, we don't have as much interaction with them on AI and what they're trying to do with AI and so on. So that was learning for all of us in the industry. But, you know, Starlink is and SpaceX is quite focused on providing this incredible broadband capability for the customer base that we are all serving already. So no, there wasn't new revelations for us, but we wish them success in certain areas because we're huge partners in those areas. And we watch them very carefully in others because they're a very strong competitor. And we are very, despite all these disclosures, we are very confident in what we're building, a multi-orbit solutions company and not pivoting ourselves to go against and Starlink in Leo capabilities, that is not an easy battle to win. So we were very comfortable that their strategy that was disclosed still reinforces our confidence in our strategy as we go forward. I hope that's helpful for all.

That's really helpful. Thank you very much. Appreciate it.

The next question is coming from Roshan Ranjit from Deutsche Bank. Your line is now open. Please go ahead.

Great morning, everyone. Thanks for the presentation. I've got two questions, please. And it's just, I guess, going back to the operational performance and the terminal, the ESA terminals. Adele, you mentioned and in the press release you say you're now over 600 tails flying. I think the Q1 number was around 600. Is it fair to say, despite the delays, there were some installs during Q2, firstly? and just added on to that, how should we think about the ramp up of the service revenues that these terminals should be generating? We've been talking about the installation and the revenues associated with that, but I think beginning of the year we had, I think it was American Airlines, we had the Japanese Airlines contract. Should we think about the service revenues only coming in once all the fleet has been kitted out or is it a more gradual ramp up? And my second question is around CBAN. Is it possible to get some visibility on the tax rate we should think about on the proceeds given that there was a divergence between Intelsat and SCS during auction 1.0? Thank you.

Yeah, so I'll take these. Thanks for the question, Roshan. So on the operational performance for aviation, Q2 was a lighter install quarter than Q1 in terms of the ESA antennas, but that was largely as expected. So we do expect the ramp to continue to grow in about Q3 and Q4. The good news is that, again, as you install these, they do enter into service. I'd say probably not such good news is that we are kind of in a dynamic where we're managing the off boarding of certain airlines that we've lost while we're onboarding some of the airlines that we have won. And so there is still a bit of a gap there in terms of service revenues if you start to compare things to prior years. But that's a little bit where we're at on the ESA and antennas. From a C-band perspective on the tax rates, Myself and the tax teams, we are working diligently on how to structure the CBAN program so that we can optimize taxes as much as possible. I don't think it's any surprise that the IntelSAT tax rate on their CBAN 1.0 proceeds was much lower than the SES, but we're working on that. I think Christian and the team have guided about 10% as the tax rate to use. We think that that's a good rate to use. And as we make more progress, we'll inform you appropriately.

And let me just add, Lisa, it's a reflection of consensus with 10%. So SES hasn't guided really on this tax rate. So the market is using the midpoint of that tax rate, which is the best assumption based on CMIT 1.0.

That's fair.

Great, thank you. Thank you, Roshan.

The next question is coming from Ben Rickett from New Street Research. Your line is now open. Please go ahead.

Yeah, hi, and thank you for the questions. I had two, please, again on the H2 recovery. So, firstly, you seem to be suggesting that there will be some one-off revenue recognition on the IRIS squared contract closing. Are you able to quantify that one-off revenue just to help us with sort of trends. And then second question on sort of OPEX. So you're highlighting that OPEX is down 9% in H1, but it wasn't clear to me, are you saying that is all synergy recognition? It's quite a big number. and how should we assume that then evolves into H2? Could that sort of 9% be even greater in H2 as you realize more of this energy? Thank you.

Thank you, Ben. Look, on H2 recovery and I want to highlight, so we do not, we did not take any one-offs for Iowa Square, just to be clear, right? Iowa Square contract existing contract that we signed at the end of 2024 was in effect as we were going through the delivery in 2025 and 2026. So the revenue we recognized through those years where services and milestones we were delivering to the IRS core existing contract. Rendezvous One was designed to validate the technical capabilities, the schedules, and close out some of the terms that were open from the original contract. It's a variation contract, variation to the original contract, but that's what we're signing in 1.01, to be clear. So there were no 1.01s. And what will happen with Iowa Square as we pass 1.01 There'll be a significant ramp of IRA squared revenues going forward because we no longer work in the pre-rendervule one scope. We work now in a 10-year plus contract that we need to build the self and so on. Lisa, if you want.

Yeah, let me just add a little bit just to give some clarity on the revenue recognition for IRA squared. And the same is going to be true for PTSG. So these are going to be percent complete contracts where revenue will be recognized on a cost-to-cost basis. So as Adele mentioned, when we exit the Rendezvous One phase, we will have performance obligations to deliver hardware and software. As we baseline those milestones, we'll start to recognize revenue as we execute on the contract. It's very similar to what you're going to see in traditional aerospace and defense companies where they were their prime contractors on long-term construction contracts. And so, as I mentioned in my prepared remarks, the mix of the business, especially in the second half, and as we kind of go forward with programs like IRIS2 and PTSG, you're going to see a shift because the mix in the profit rates are somewhat different when we execute on those programs. But again, those are great programs for us to have. They're franchise programs for us to get a foot in. They help supplement some of the CapEx for us, and they're overall very good for us becoming a space solutions company going forward.

And Ben, you guys have done a lot of work on the model of SCS and et cetera. What Lisa just said is really important, and we will major on it in our capital markets today, right? We are pivoting the concept. When we say we're going to become an industrial space solutions company, we're doing it, right? I mean, so in the past, so if you think about Empower, right, the way Empower worked is we spec design the satellites and then we paid capex to somebody else to build it. That's how it worked, right? And then it took us a while to get, so we had a lot of cash up front and then it took us a while to get to our revenue when the constellation was running. The model now is shifting to something different, where people pay us to build our own satellites. We do invest in these stuff, but there's a big subsidization happening from outside customers that either want to co-own the constellation with us or fund us for these constellations. And that has the revenue profile as Lisa just described. So we're seeing a much better use of cash. And as we go forward, By the way, we're not thinking of becoming an industrial player to start building satellites for somebody else. We're building them for ourselves. For us, right? For countries that come to us and say, build it for us and then manage it for us. Run the network for us going forward. You will see a shift in these kind of, and PTSG is an example of that. Iowa Square is an example of that. We'll be announcing other So things before the end of the year and beginning of next year, contracts that are very similar in nature, which is a big pivot and an important pivot for the company to go forward. Look, on the OPEX, look, our OPEX lines have multiple lines. And also keep in mind that as we take out people, I mean, we have reduced significant amount of people in the company, and we took out a lot of costs from non-staff related OPEX. Those two are high double-digit decline year-on-year. And CMD will show you the data at the end of the year when we do our full year 2026 results. We will share our accomplishment for our synergies execution. However, look, we're also hiring people, just to be clear, to deliver Iris Square, to build up our factory, and that all sits in the OPEX number. So, you know, that's why you don't see the big takedown that we see underneath the covers, which we will share with you guys as we close the year going forward. And in the second half of the year, we expect that trend that we just described in terms of staff and non-staff related synergies to be the same one, you know, high double digit decline. That's what we're expecting. That's what is happening in our P&Ls.

That's really helpful. Thank you, Ben. And can I just check? In Q1, you had that sort of 81 million one-off. There's nothing similar to that coming in H2.

Well, we have this big contract that we keep mentioning, right? So there is a potential of that. It's not that size. That's not the level. But as we said before, Ben, I mean, we do have these. These one-offs are normal. I mean, we had them in 2025. and then we're not insignificant and by the way we're suffering in 2026 year-on-year compares because of these one-offs right but we don't typically talk about them because we feel first of all we need to disclose them to the market because they're not insignificant in their nature however they are part of our business that's how it's run right and then you can go back multiple years and you see that every year there's a few of those things and sometimes you know the following year they're negative because you're trying to compare to them and they're positive in a sense if you're doing them more than what you did the prior year. And then one of the big ones to remind you guys is in maritime, right? Maritime, we had a large contract that we restructured in 2024 that had an impact in 25 and 26 on comparison. We don't talk about it because we see it as a normal part of our business.

Thank you, Ben. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question is coming from Terence Tsui from Morgan Stanley. Your line is now open. Please go ahead.

Oh, thank you very much. Good morning, everyone. I had a quick clarification on the timing of the CBAM proceeds. I think at the last clearing process, back in like 2020, 21, the proceeds to the satellite industry started about a year after the auction. But for the upper C-band now, it seems like it's going to be a bit, the timing of the payments will be a bit later than that. So can you just explore a bit, has anything changed to expect or to drive the FCC moving towards slightly later timing of the payments compared to last time around? And then secondly, around the capital allocation priorities. You mentioned, obviously, the priority to delever and then return at least the majority of C-band proceeds prioritized for shareholder returns. But what about the remainder? I assume some will be sell aside for some growth initiatives. Does this involve potentially more capex or would you even explore potentially some M&A? Thank you.

Terrence, let me start with the CBAN and then Lisa, you can jump in on the capital allocation. Look on the CBAN, you're absolutely right. The prior clearing had two phases that were different the way they're described this, the CBAN. Why is that? I mean, the commission wants to accelerate the clearing this time. I mean, they want to do it faster than what happened last time. So they put a lot of emphasis on, you know, getting to at least 70% of the U.S. population to be cleared by end of 2030, which means that large areas in the United States. So it's a little bit different philosophy than where the chair and the FCC staff thought about it, which is what you're seeing and how it is described. On the other hand, they work very hard on improving the efficiency of expense reimbursement. So they kind of tried to make it more balanced, to make sure that people are not having to finance things and the U.S. government doesn't have to pay the interest rates, which is beneficial for us. And that's why when Akhil and then after that Alex were asking the questions, our incentive is to, natural incentive, what the commission wanted to put on us, which is working, is to make it faster as soon as we can. and that's what we're working on to make it successful. But it is different. You're absolutely right. In terms of capital allocation?

Yeah, so in terms of capital allocation, again, there's no change in our financial policy. So we are committed to delivering to about 3.0 times or below and then we will return excess cash to shareholders. And just maybe just to give a little bit of color around that, In our midterm modeling, we have modeled the CapEx that we need for growth. It's already included into that financial policy. So we feel very confident that our shareholders will participate in any earnings that come from this event.

Right. And look, the contracts we talked about before, right, and we'll disclose more as we sign them, right, do have cash injections into the company. Right. So like I said, the profile is changing from us having to front up all the CapEx into a model that where customers are participating in the investments and contribution of this cash way before the constellations are ready. So look, I get these questions all the time because I was the one who showed up in 2024 and used the proceeds to acquire another company. So I'm asked this question all the time, do you have other ideas to do that? And we keep reiterating over and over again, we made it very clear Our priority is the lever. Look, we've done the big move, right, which which is now generated in within the scope. I feel very good about the intercept because of the C-band announcement reinforcing it even further. We are getting billions more than what we would have gotten on a standalone company. So that looks good. And it's a good thing for the company in terms of creating scale and being able to drive the growth of the company going forward. We now have the scale. We're now able to shift into a strategic pivot that we keep describing, becoming more of a space solutions company that's verticalized. And we have modeled all of these cash requirements to do that. If we're going to do an M&A, if there is one and there isn't one on our roadmap right now, it will not be large. It will be about, can we accelerate our ASIC skills? Can we accelerate our manufacturing capabilities? those are the type of things that we may think about and I want to be clear again reiterate there's nothing on the road map right now that we will look at M&A and we will not use the money we're getting from CBAN to do that M&A we're going to use the CBAN money to deliver and any excess of that money is going to be going to our shareholders in various means given it right where you talk we already signal to the market that as soon as we get to our 3.0 or below, we will start looking at increasing our dividends to our shareholders. We feel very confident in doing that because we have the funding required to go forward. We just need to deliver first is what we need to do. And then we need to be able to afford the investments from our cash generation and our customers' contributions as we go forward. That's how the model is built. And that's what we're executing. Lisa?

I think you got it.

Okay. Karish, did that answer your question? Yep, that's perfect. Thank you.

Thank you.

There are no more questions at this time, so I hand the conference back to Chris and Kern for any closing remarks.

Thank you, Gaia, and thank you to all participants for joining us today. Thank you for an excellent Q&A. and if there are any further questions, please contact the IR department. We are here to help and speak soon. Take care.

Thanks for joining today's call. You may now disconnect.