ViaSat provides update on VS-3 F1 satellite and cash flow

Viasat announced financial developments as a result of which Viasat now expects to reach the inflection point of sustainable positive free cash flow during the first half of calendar 2025, rather than the second half. Viasat has determined that while the satellite payload is functional, it expects to recover less than 10% of the planned throughput on ViaSat-3 F1. The company remains confident that it will meet the current and future needs of its mobility customers and is well-positioned to achieve its financial growth objectives. Viasat also confirmed that it has insurance coverage of $420M in place for ViaSat-3 F1 and will finalize its claim before the end of the year. The company will not require a replacement satellite for ViaSat-3 F1. The integration of the Inmarsat acquisition is proceeding ahead of plan. Viasat synergy estimates of $80M in annual operating expenses and $110M in annual capital expenditures are now anticipated to be fully realized in FY25, versus over an approximate three-year period as originally planned. Further, Viasat expects to identify and realize additional savings in subsequent phases of the synergy program. Following Viasat’s determination that a replacement for ViaSat-3 F1 is not necessary, the majority of the capital expenditures related to the ViaSat-3 constellation have been completed. Viasat is forecasting capital expenditures in FY25 to decline from FY24 and to be in the range of $1.4B-$1.5B, including completion of the final stages of the ViaSat-3 constellation and the continued build of GX satellites. Viasat expects accelerated, continued declines in capital expenditures as satellites currently under construction are completed. The company confirms insurance coverage of $348M in place for the I6 F2 satellite and will finalize its claim before the end of the year. Expects to report over $3B of liquidity as of September 30, including approximately $2.0B of cash, cash equivalents and short-term investments with no near-term outstanding debt maturities.