SES 3Q: 2H recovery delivers; clean beat and faster deleveraging

SES delivered a very strong 3Q26, providing convincing evidence that the H2 recovery promised by management is materialising. Revenue of EUR 870m was 4.6% ahead of consensus and adjusted EBITDA of EUR 413m beat by around 12%, with the reported margin at 47.5%, roughly 300bp above expectations. The beat was boosted by EUR 54m of periodic revenue from a planned Aviation contract restructuring in Mobility, but even adjusting for it and assuming 90% drop-through, underlying revenue was c.1% ahead and underlying adjusted EBITDA c.5% ahead, with an underlying margin of c.44.7%, so this is not purely a one-off. Media was the clearest operating surprise at EUR 304m, 5% above consensus and essentially flat LFL after declines of 11% and 9% in 1Q and 2Q, helped by strong commercial execution and around EUR 900m of long-term renewals including Canal+ and Sky. Networks revenue of EUR 556m was 4% above consensus, with Mobility the headline driver at EUR 234m, Government and Defense in line at EUR 21