Space42 Announces Strong First Half Performance Driven by Enhanced Operations and Strategic Implementation

Space42, an AI-driven space technology firm based in the UAE, announced a strong performance for the first half of 2025, sustaining profit levels and enhancing margins despite ongoing operational improvements and strategic growth efforts.

The company, which trades on the Abu Dhabi Securities Exchange under the designation SPACE42, reported a normalised net profit of $53 million, unchanged from the previous year, yet with an improved profit margin.

As of June 30, cash and short-term deposits reached $816 million, complemented by a newly acquired funding facility of $0.7 billion backed by export credit agency. Space42 also noted contracted future revenues totaling $6.8 billion.

Karim Sabbagh, Managing Director, stated, “The first half of 2025 highlights our dedication to operational excellence and capacity enhancement. The positive momentum across our platform indicates that our dual-use capabilities not only foster commercial success but also provide strategic advantages. The commercial launch of Thuraya-4, alongside our methodical approach and ongoing optimization, positions us for growth that aligns with evolving market demands.”

In Q2 2025, Space Services achieved a 2% year-over-year revenue increase to $100 million, driven primarily by double-digit growth within the oil and gas industry. This growth is linked to heightened demand for secure communication and mobile satellite services in the UAE, a trend anticipated to persist.

The imminent commercial operation of the Thuraya-4 satellite in the second half of 2025 is expected to further propel growth with new offerings in defense, security, and commercial sectors.

Progress was also reported in the development of its direct-to-device (D2D) system, with more advancements expected by the end of this year.

Though Smart Solutions experienced some challenges due to the timing of multi-year programs, capability development continued, with key programs initiating for scaling in the latter half of 2025. The focus remains on deploying the Foresight system, integrating seven Earth observation satellites, as well as enhancing the GIQ geospatial analytics platform, which is now accessible on Microsoft Azure Marketplace.

These initiatives have been acknowledged by the UAE government with the Future Fit seal, underscoring the strategic importance of Space42’s dual-use technologies.

Significant advancements in strategic pillars

Space42 outlined progress in various initiatives:

• In collaboration with ADIO, launched the region’s first SAR satellite manufacturing facility.
• Finished building a High-Altitude Platform Systems (HAPS) manufacturing and R&D site, aiming for full commercial launch by 2026.
• Executed a Memorandum of Understanding with Microsoft and Esri for the Map Africa Initiative, a five-year AI-driven mapping project across all 54 African nations.
• Prepared the GIQ platform for large-scale commercialization anticipated in Q4 2025.
• Awarded the UAE Government’s Future Fit Seal for innovation.
• Progressed in the joint venture with FADA and EDGE to establish a national geospatial ecosystem.
• Advanced the development of AI-integrated command and control systems and sensing technologies.
• Approaching the completion of in-orbit testing for Thuraya-4, introducing 16 new products including IP Neo Broadband and Thuraya Broadband Hotspot.
• Worked on D2D space systems in partnership with Viasat to create a 5G NTN multi-orbit platform.
• Continued progress on the Al Yah 4 and Al Yah 5 satellite program, with design reviews currently in process. These assets will support a $5.1 billion, 17-year government agreement that is projected to yield $300 million annually starting from Q4 2026.

Financial overview: Key metrics