and Called It Synergy in their H1 2025 Results.
Look, if you’re tired of watching telecoms companies parade out numbers like magicians pulling rabbits from hats, SES has the perfect trick for you: Buy an ex Ch11 satellite company, slap the word “synergy” on it, and call it “value accretive.”
That’s right. SES shelled out €2.2 billion to acquire Intelsat, yes, the same Intelsat that ghosted creditors not so long ago. And they’re claiming €2.4 billion in synergies. Because who wouldn’t believe a company that just settled for €58 million in insurance over a four-satellite faceplant?
Media revenue? Dropping like a Netflix stock post-password crackdown. But it’s fine because government contracts are booming, nothing says stable like relying on war budgets.
Their shiny toy, O3b mPOWER, is being pushed into orbit faster than you can say “delays,” and now they’re hitching rides with Impulse Space’s Helios launcher. Sure, Helios hasn’t actually launched anything yet, but what could possibly go wrong betting on a PowerPoint rocket?
Then, there’s IRIS2, a grand European moonshot. SES gets to play space savior unless costs rise or timelines slip, in which case, they’ll quietly moonwalk out. Smart move, honestly.
All this while profits plummet and real net earnings barely break even. But don’t worry, they’re paying dividends! Because nothing says confidence like paying shareholders while your actual earnings whisper for help.
So yes, SES is building “a global multi-orbit connectivity powerhouse.” Whether it flies, crashes, or orbits endlessly in PowerPoint limbo, that’s anyone’s guess.
Cash Flow Cosmetics and Debt Gymnastics
But back to the actual numbers.
Sure, SES boasts a 32% year-on-year boost in adjusted free cash flow to €193 million. Sounds great, until you realize it’s mostly fueled by lower tax payments, deferred interest, and insurance payouts from satellite failures. Organic cash generation? Not so much.
But the real magic? Their Adjusted Net Debt to Adjusted EBITDA ratio down to 1.1x. Very impressive. Except… they treat hybrid bonds as 50% equity. That €1.524 billion hybrid isn’t chicken feed, it’s leverage in disguise. Recast that as 100% debt like a conservative analyst and poof, leverage jumps, risk profile shifts, and your debt covenant starts sweating.
Also, don’t miss that they refinanced a €3 billion bridge loan in under 3 months. That’s not financial strength; that’s urgency. Banks don’t like bridges they have to live under.
SES’s balance sheet may look trim and fit.
But squint a little, and you’ll see it’s held together with accounting yoga and a highly flexible definition of “adjusted.”
SES: Sovereignty With Stock Tickers