Telesat Corporation, Ottawa‑based satellite operator, has entered into a strategic partnership with the Government of Canada and MDA Space to develop and deliver the Enhanced Satellite Communications Project – Polar (ESCP‑P). The collaboration will provide the Canadian Armed Forces with secure narrowband and wideband satellite communications, enabling reliable connectivity for sovereignty operations in the Arctic and reinforcing Canada’s commitments to NORAD and NATO.
The partnership is a cornerstone of Canada’s Defence Investment Agency (DIA) procurement strategy, which was launched in October 2025 to accelerate defense modernization. By leveraging Telesat’s Lightspeed Low Earth Orbit (LEO) constellation and MDA Space’s satellite manufacturing expertise, the project will deliver a multi‑frequency, high‑throughput architecture that supports both tactical and strategic military missions in the polar region. The contract is expected to generate high‑value jobs and stimulate investment across Canada’s space sector under the Industrial and Technological Benefits (ITB) policy.
Telesat’s 2025 revenue guidance of $405 million to $425 million and adjusted EBITDA guidance of $170 million to $190 million are anchored by the ESCP‑P deal, which is projected to contribute a significant portion of the year’s top‑line growth. The company’s Q3 2025 earnings report showed consolidated revenues of $101 million and adjusted EBITDA of $47 million, a decline from the $571 million revenue and $384 million EBITDA reported for full‑year 2024. The partnership is therefore a key driver of the company’s future financial trajectory, offsetting current headwinds in its legacy GEO segment and supporting the Lightspeed backlog that exceeds $1 billion.
Dan Goldberg, President and CEO of Telesat, said the collaboration “strengthens Canada’s sovereignty in the North and demonstrates the value of Canadian innovation in defense satellite technology.” Mike Greenley, CEO of MDA Space, added that the joint effort “leverages our long‑standing relationship with the Canadian Armed Forces to deliver cutting‑edge Arctic communications at the speed of innovation.”
The announcement has been well received by investors, with the company’s stock rising 1.20 % on December 8 2025 and 8.31 % over the week ending December 9 2025. Analysts view the deal as a positive catalyst for Telesat’s LEO strategy, noting that the contract’s multi‑billion‑dollar value and the associated job creation align with Canada’s broader space and defense objectives.
The partnership also positions Telesat to capture a growing market for secure, low‑latency satellite connectivity in defense and government sectors, while the company continues to navigate cost pressures and revenue declines in its GEO business. The ESCP‑P deal is expected to accelerate the company’s commercial momentum and support its 2025 guidance, but management cautions that ongoing investments in Lightspeed and the need to manage operating expenses will remain critical to sustaining profitability.
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