Image courtesy: Space42/ For illustrative purposes
UAE-based AI-powered Spacetech company Space42 reported a resilient first-half performance for 2025, maintaining profit levels and improving margins amid continued operational optimisation and strategic expansion.
The company, listed on the Abu Dhabi Securities Exchange under the symbol SPACE42, posted a normalised net profit of $53m, flat compared to the same period last year, but with a higher margin.
Cash and short-term deposits stood at $816m as of June 30, alongside a newly secured $0.7bn ECA-backed funding facility. Space42 also reported contracted future revenues of $6.8bn.
“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,” said MD Karim Sabbagh.
Space Services recorded 2 per cent year-on-year revenue growth in Q2 2025, reaching $100m, led by double-digit growth in the oil and gas sector. Growth was attributed to demand for secure communications and mobile satellite services in the UAE, with this trend expected to continue.
The recent launch of the Thuraya-4 satellite, set to enter commercial service in H2 2025, is expected to accelerate growth with new offerings in defense, security, and commercial applications.
The company also reported progress in its direct-to-device (D2D) system, with further developments anticipated later this year.
Despite underperformance linked to multi-year programme timing, Smart Solutions continued capability development and began seeding key programs set to scale in H2 2025. It is focused on deploying the Foresight system, featuring seven Earth observation satellites, and advancing the GIQ geospatial analytics platform, now available on Microsoft Azure Marketplace.
These efforts were recognised with the Future Fit seal by the UAE government under the UAE Space Agency, underscoring the strategic value of Space42’s dual-use technologies.
Strategic pillars show broad progress
Space42 reported progress in these areas:
- Launched the Middle East’s first SAR satellite manufacturing facility in partnership with ADIO.
- Completed construction of a High-Altitude Platform Systems (HAPS) manufacturing and R&D site, targeting full commercial rollout by 2026.
- Signed MoU with Microsoft and Esri for the Map Africa Initiative, a five-year AI-powered mapping program across all 54 African countries.
- Scaled the GIQ platform ahead of full commercialisation in Q4 2025.
- Received the UAE Government’s Future Fit Seal for innovation.
- Advanced joint venture with FADA and EDGE to develop a national geospatial ecosystem.
- Continued development of AI-integrated command and control systems and sensing technologies.
- Near completion of Thuraya-4 in-orbit testing, with 16 new products rolling out including IP Neo Broadband and Thuraya Broadband Hotspot.
- Ongoing development of D2D space systems with Viasat, establishing a 5G NTN multi-orbit platform.
- Continued progress on the Al Yah 4 and Al Yah 5 satellite programme, with design reviews underway. These assets support a $5.1bn, 17-year government contract generating $300m annual revenues from Q4 2026.
Read: Space42, Microsoft, Esri to expand mapping capabilities across Africa
Financial highlights: At a glance
| Metric | Result |
|---|---|
| Revenue | $226m (-17 per cent YoY) |
| Normalised EBITDA | $112m (-14 per cent YoY); margin up 2pp to 49 per cent |
| Normalised Net Profit | $53m (flat YoY); margin up 4pp to 23 per cent |
| Cash CapEx | $109m |
| Cash / Short-Term Deposits | $816m |
| Negative Net Debt | $478m |
| Net Leverage Ratio | -1.8x |
| Contracted Future Revenues | $6.8bn |
