Space42 Reports USD 577m Revenue in 2025 as Strategic Transformation Gains Momentum
The company said 2025 marked a pivotal year in advancing its strategy-based transformation across four core pillars, while expanding partnerships with leading global players.
Space42, the UAE-based AI-powered SpaceTech company listed on the Abu Dhabi Securities Exchange under the symbol SPACE42, has reported consolidated revenues of USD 577 million for the full year ended 2025, representing an 8% year-on-year decline amid an ongoing strategic transformation.
The company said 2025 marked a pivotal year in advancing its strategy-based transformation across four core pillars, while expanding partnerships with leading global players. Although full-year revenues were lower, Space42 recorded improving momentum in the second half of the year, with fourth-quarter revenues rising 7% compared to 2024, positioning the business for a return to growth in 2026.
Space Services, which accounts for more than three-quarters of consolidated revenue, delivered one of its strongest performances to date. Revenue in the segment rose 6%, supported by a new USD 700 million, 15-year government contract that commenced on July 1 following the successful launch of the Thuraya-4 satellite. The division also achieved its highest-ever normalized EBITDA and net profit, driven by strong performance across managed solutions and consistent quarterly revenue growth throughout the year.
In contrast, Smart Solutions, contributing less than one-quarter of total revenue, reported USD 124 million in revenue, a 39% decline year-on-year. The drop reflects the segment’s strategic and operational transition toward programmatic engagements aligned with its core capabilities in Earth Observation, geospatial analytics and AI.
Full-year results included one-off impairment charges of USD 129 million relating to the pre-merger Smart Solutions business. Excluding these items, Space42 generated normalized EBITDA of USD 224 million, representing a 39% margin, and normalized net profit of USD 79 million. Reported EBITDA stood at USD 90 million. The company ended the year with approximately USD 995 million in cash and short-term deposits, negative net debt of USD 727 million, and USD 6.5 billion in contracted future revenues, providing significant financial flexibility to execute its strategy.
Commenting on the results, Managing Director Karim Sabbagh said 2025 laid the foundation for the company’s long-term ambitions, with investments in infrastructure, partnerships and capabilities alongside the retirement of legacy practices. He added that the strong performance of Space Services and the structured transition of Smart Solutions support renewed momentum heading into 2026.
During the year, Space42 strengthened its position as a preferred partner for premium geospatial data by expanding the Foresight satellite constellation following the launch of Foresight-3, -4 and -5 in partnership with ICEYE. It also announced collaborations with Microsoft and Esri to deliver high-resolution base maps across 54 African countries over the next five years, while validating Mira Aerospace’s High Altitude Platform Systems for commercial deployment.
In non-terrestrial connectivity, Thuraya-4 entered commercial service as one of the largest geostationary mobile satellite services platforms ever produced. The company also unveiled plans to launch Equatys with Viasat to provide Direct-to-Device satellite connectivity using standards-based 5G NTN open architecture.
Space42 further advanced its secure connectivity portfolio under a USD 5.1 billion, 17-year government contract for the Al Yah 4 and Al Yah 5 satellite program, which remains on schedule and budget, with revenue generation expected from late 2026.
Additionally, the company expanded into autonomous mobility through a joint venture with South Korea’s Autonomous A2Z to deploy Level-4 autonomous driving solutions across the Middle East and Africa, alongside agreements with Abu Dhabi Police and Dynamic Map Platform to support smart security systems and advanced driver-assistance technologies in the UAE.
The company said its financial disclosures were prepared on a pro forma basis to enable like-for-like comparison of the combined business following its merger, with normalized metrics adjusting for material non-recurring items.
