How SES’s (BDL:SESGL) Latest Tech Partnerships Are Shaping Its Satellite Connectivity Narrative

• SES recently announced collaborations to advance its medium Earth orbit (MEO) network with K2 Space, began testing Cailabs’ optical ground stations for laser communications, and reported successful deployments of its O3b mPOWER service with the French Navy.
• These developments underscore SES’s ongoing push to innovate secure, high-speed connectivity options for both government and enterprise clients, signaling potential for broader applications in critical communications technology.
• We’ll explore how SES’s focus on pioneering high-throughput network technologies is shaping its investment narrative in the satellite communications sector.

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What Is SES' Investment Narrative?

For SES shareholders, the big picture centres on the belief that innovation in secure, high-throughput connectivity will drive long-term value, especially as governments and enterprises demand more resilient communications. Recent advances, such as the collaboration with K2 Space on the next-generation MEO network and Cailabs’ optical ground station tests, reinforce this forward-looking story. These technology milestones, together with visible use cases like the French Navy deployment, may sharpen near-term catalysts around contract wins and commercial rollouts. At the same time, the board refresh and continued dividend affirmations indicate a heightened focus on governance and shareholder engagement. However, risks remain in the company’s unprofitable position, thin net margins, and sustained dividend outflows that are not currently covered by earnings. Investors will want to watch how these breakthroughs interact with short-term financial pressures and whether recent moves can translate innovation into sustainable profitability.

However, the dividend's lack of earnings coverage is a key issue that may concern some investors.

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Exploring Other Perspectives

Four community members in Simply Wall St estimate SES's fair value between €3.78 and €8.39, showcasing diverse outlooks. This broad range reflects how opinions differ widely, particularly as investors weigh recent innovation against ongoing profit risks. Consider these perspectives to better understand SES's spectrum of potential.

Explore 4 other fair value estimates on SES - why the stock might be worth 39% less than the current price!

Build Your Own SES Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SES research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free SES research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SES' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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