Profits for Luxembourg satellite company SES drop due to U.S. budget cuts and shutdown
According to its third quarter report, the profits of Luxembourg satellite company SES were impacted negatively because of the budget cuts of the Trump administration, and were then further impacted because of the extended government shutdown.
Revenue over the first nine months of this year rose 20% to €1.75 billion while losses mounted to €55 million so far in 2025. Part of the problem was the Trump administration reassessment of spending that had been decided last year, including the delay of contract renewals and decisions on new awards, Chief Executive Officer Adel Al-Saleh said. Large contracts have also been delayed by the longest congressional budget standoff in US history, now in its sixth week, he said. “We’re experiencing timing delays in some contract awards due to the continuing resolution and subsequent government shutdown,” Al-Saleh said on a conference call with stock analysts.
The company remains in the black, and it expects to make up these losses from other customers. It is also in the process of completing its purchase of the satellite company Intelsat, which has also impacted its profits.
The article notes one interesting aspect of this Luxembourg company, that reflects the unique approach to tax dollars by that nation’s government: “Luxembourg taxpayers own one-sixth of SES shares, but wield a third of the voting power after underwriting its creation four decades ago.” The government doesn’t simply spend its tax revenue, like most governments. It treats that revenue as investment capital, and uses it to make money for the benefit of its citizens.
If only more governments would take this approach!
According to its third quarter report, the profits of Luxembourg satellite company SES were impacted negatively because of the budget cuts of the Trump administration, and were then further impacted because of the extended government shutdown.
Revenue over the first nine months of this year rose 20% to €1.75 billion while losses mounted to €55 million so far in 2025. Part of the problem was the Trump administration reassessment of spending that had been decided last year, including the delay of contract renewals and decisions on new awards, Chief Executive Officer Adel Al-Saleh said. Large contracts have also been delayed by the longest congressional budget standoff in US history, now in its sixth week, he said. “We’re experiencing timing delays in some contract awards due to the continuing resolution and subsequent government shutdown,” Al-Saleh said on a conference call with stock analysts.
The company remains in the black, and it expects to make up these losses from other customers. It is also in the process of completing its purchase of the satellite company Intelsat, which has also impacted its profits.
The article notes one interesting aspect of this Luxembourg company, that reflects the unique approach to tax dollars by that nation’s government: “Luxembourg taxpayers own one-sixth of SES shares, but wield a third of the voting power after underwriting its creation four decades ago.” The government doesn’t simply spend its tax revenue, like most governments. It treats that revenue as investment capital, and uses it to make money for the benefit of its citizens.
If only more governments would take this approach!
