en.Wedoany.com Reported - Space42, a UAE-based space technology company, released its H1 2026 results, reporting revenue of $260 million during the period, up 15% year-on-year, with adjusted EBITDA also hitting a record. As of the end of the first half, the company held a cash balance exceeding $1.1 billion and a backlog of $6.3 billion. According to the company, the growth was primarily driven by accelerating demand for satellite services, geospatial intelligence, and AI-driven solutions.
The company also disclosed that its general assembly has approved a share buyback program of up to 2.5% of issued share capital. The program is pending approval from the Abu Dhabi Securities Exchange (ADX) and is expected to launch in Q3 2026, with the company stating that the move reflects management's view that the share price is undervalued.
By segment, the Space Services segment saw revenue grow 15% year-on-year during the period, delivering its strongest-ever half-year performance. Growth was driven by a $700 million, 15-year government capacity services contract that commenced on July 1, 2025, as well as the successful launch of the Thuraya-4 satellite. The company expects this segment to achieve its best full-year performance in 2026.
The Smart Solutions segment posted 14% year-on-year revenue growth in H1, with Q2 revenue more than doubling year-on-year. Growth in this segment was driven by rising government demand for geospatial intelligence, Earth Observation (EO) capabilities, and situational awareness solutions, with demand primarily fueled by sovereign requirements.
On strategic progress, Space42 confirmed that the Foresight-3, Foresight-4, and Foresight-5 satellites are now fully operational, enhancing its dual-use geospatial intelligence capabilities. The company continues to advance its High-Altitude Platform Systems (HAPS) development with Mira Aerospace, having initiated production of the first ApusNeo30 prototype while upgrading the ApusNeo18 platform.
In the AI geospatial domain, the company expanded its GIQ platform available through Microsoft Azure Marketplace, adding AI applications, automated ordering of Foresight satellite data, and enhanced analytics capabilities; the GIX platform continues to provide operational intelligence support to sovereign customers.
In satellite communications, Space42 is accelerating the commercial rollout of Thuraya-4 services under long-term government contracts and, in partnership with Skylo Technologies, has completed testing of direct-to-device (D2D) SMS and SOS services on standard smartphones, with commercial deployment expected by the end of 2026. Equatys, a joint venture with Viasat, is also progressing, and will provide global direct-to-device connectivity services leveraging standards-based 5G non-terrestrial network architecture, supported by more than 100 MHz of globally coordinated spectrum.
In the secure connectivity business, the Al Yah 4 and Al Yah 5 satellite programs are advancing under a $5.1 billion, 17-year government contract, on schedule and within budget, with critical design reviews substantially complete and expected to generate approximately $300 million in annual revenue starting from Q4 2026. The company is also developing a multi-orbit strategy, planning to integrate Low Earth Orbit (LEO) and Medium Earth Orbit (MEO) broadband capabilities to complement the Al Yah satellite network.
Beyond space infrastructure, Space42's joint venture with Autonomous A2Z continues to progress, targeting the deployment of Level 4 autonomous driving solutions in the Middle East and Africa. The company has also signed an agreement with Abu Dhabi's Integrated Transport Centre to develop a national geospatial navigation platform, unifying Abu Dhabi's mapping and spatial services to strengthen digital sovereignty.
Karim Michel Sabbagh, Managing Director of Space42, stated in the results release that H1 revenue grew 15% year-on-year, reflecting strength in government business, rising demand for EO and geospatial analytics, and disciplined strategic execution. The Space Services business set a record, while the Smart Solutions division is accelerating its transformation into a programmatic, higher-value dual-use business with EO and geospatial analytics as core capabilities. He also noted that the company maintained operational resilience and business continuity in a dynamic operating environment, and will continue to invest in its four strategic pillars, differentiated capabilities, and key partnerships in H2 to build long-term competitive advantage.
