Deferred tax balances

12 Months Ended

Dec. 31, 2025

Deferred tax expense (income) [abstract]

Note 11—Deferred tax balances

The deferred tax positions included in the consolidated financial statements can be analysed as follows:


€ million	Deferred tax assets 2025			Deferred tax assets 2024			Deferred tax assets 2023			Deferred tax liabilities 2025			Deferred tax liabilities 2024			Deferred tax liabilities 2023
Losses and interest carried forward		759			654			658			—			—			—
Tax credits		17			20			6			—			—			—
Intangible assets		24			12			16			(78	)		(134	)		(110	)
Tangible assets		132			5			5			(171	)		(59	)		(83	)
Leases		17			—			—			—			—			—
Trade and other receivables		15			20			17			—			—			—
Deferred revenue		—			—			—			(200	)		—			—
Partnership basis		—			—			—			(337	)		—			—
Other		54			18			5			(43	)		(47	)		(48	)

Total deferred tax assets/(liabilities)		1,018			729			707			(829	)		(240	)		(241	)

Offset of deferred taxes		(374	)		(28	)		(36	)		374			28			36

Net deferred tax assets/(liabilities)		644			701			671			(455	)		(212	)		(205	)

Deferred tax assets have been offset against defe

ed tax liabilities where they relate to the same tax authority and the entity concerned has a legally enforceable right to set off current tax assets against current tax liabilities.

Losses carried forward

In 2025 the Group decreased the net deferred tax asset (‘DTA’) for tax losses carried forward in Luxembourg of EUR

million due to the positive taxable result and adjustment of DTA for prior years (2024: additional EUR

million, 2023: additional EUR 370 million).

Tax losses can be carried forward in Luxembourg for 17 years. Using the estimated future taxable income based on the most recent business plan information approved by the board of directors, the Company has concluded that the deferred tax assets of EU

575

million (2024: EUR

627

million; 2023: EUR 608 million) relating to the remaining tax losses are recoverable.

The Group has deferred tax assets for tax losses carried forward in Germany for EUR 26 million (31 December 2024: EUR 24

million; 2023: EUR 20 million) which can be carried forward indefinitely. The Group has also recognized deferred tax assets for tax losses carried forward in the United States for EUR

125 million (31 December 2024: EUR 3

million; 2023: EUR 20 million) which can be carried forward for varying period ranging from 10 years to indefinitely.

In addition to the recoverable tax losses for which the Group has recognized deferred tax assets, the Group has further tax losses of EUR

10.1

billion as at 31 December 2025 (2024: EUR

578

million; 2023: EUR

305

million) which are available for offset against future taxable profits of the companies in which the losses arose.

EUR

797

million (2024:

456

million; 2023: EUR

193

million) of these tax losses were generated in the US for state taxes which can be carried forward for varying period ranging from 1 year to indefinitely. EUR

million (2024: EUR

million; 2023: EUR 86 million) of these tax losses were generated in Israel. EUR 23 million of tax losses (2024: EUR 15 million; 2023: EUR 8 million)

were

generated in Ghana. EUR 8.8 billion of tax losses were generated by the Intelsat Luxembourg fiscal unity and EUR 453 million by a Luxembourg entity. The utilisation of these losses is subject to review by the Luxembourg tax authorities under the usual statute of limitation of 5 years for corporate income tax as from 1 January following the end of the fiscal year. The general statute of limitation may be extended to 10 years in case of (i) incorrect or incomplete tax return or (ii) failure to file a tax return. The existence of the carried forward tax losses remains therefore uncertain (at least) until the end of the fifth fiscal year after the fiscal year in which they are used.

Deferred tax assets have not been recognized in respect of these losses as they cannot be used to offset taxable profits elsewhere in the Group and they have arisen in subsidiaries which are not expected to generate taxable profits against which they could be offset in the foreseeable future.

Interest carried forward

The Group has deferred tax assets for interest expense carried forward in the US for EUR 37 million (2024: EUR 0 million) which can be carried forward indefinitely. The Group has also EUR 12 million of interest carried forward for which no DTA has been recognized.

Investment tax credits (‘ITCs’)

Considering the total tax losses carried forward and future taxable income based on the most recent business plan information for Luxembourg entities, the Company has concluded that prior and current year ITCs cannot be fully used due to a 10 year carry forward limitation rule. Therefore, no deferred tax asset was recorded in 2025.

Considering future taxable income based on the most recent business plan information for LuxGovSat S.A. and contemplated investment in new GovSat-2 satellite, the Company has concluded that LuxGovSat S.A.

can recognize a DTA of EUR

8 million for future use of ITCs (2024: EUR 14

million; 2023: EUR 6 million).

Other

No deferred income tax liabilities have been recognized for withholding tax and other taxes which would be payable on the unremitted earnings of certain subsidiaries. Such amounts are permanently reinvested or not subject to taxation.

Business combination impact

Unrecognized Deferred Tax Assets

At the acquisition date, Intelsat entities had the tax loss carry-forwards of EUR 9.6 billion (of which EUR 9.2 billion in Luxembourg and EUR 379 million in the US for state losses) and investment tax credits of EUR 180 million. Based on its assessment under IAS 12 standards, the Company has concluded that it is not probable that future taxable profits will be available against which the losses can be utilized. Consequently, no DTAs are recognized for losses carried forward unless there are temporary taxable differences available for the same tax authority and the entity concerned has a legally enforceable right to set off current tax assets against current tax liabilities.

Movement in deferred income tax assets and liabilities

The movement in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances, is as follows:


Deferred tax assets	Losses and interest carried forward			Tax credits			Tangible assets			Intangible assets			Trade and other receivables			Leases		Other			Total
At 1 January 2023		296			206			—			20			15			—		5			542

(Charged)/credited to the income statement		363			(200	)		5			(4	)		3			—		—			167
Transfers		—			—			—			—			—			—		—			—
Exchange difference 1		(1	)		—			—			—			(1	)		—		—			(2	)

At 31 December 2023		658			6			5			16			17			—		5			707

(Charged)/credited to the income statement		(4	)		14			—			(4	)		2			—		1			9
Transfers		—			—			—			—			—			—		11			11
Exchange difference 1		—			—			—			—			1			—		1			2

At 31 December 2024		654			20			5			12			20			—		18			729

Additions through business combinations
(Note 4)		121			2			76			46			4			14		84			347
(Charged)/credited to the income statement		(13	)		(4	)		52			(34	)		(7	)		3		(45	)		(48	)
Exchange difference 1		(3	)		(1	)		(1	)		—			(2	)		—		(3	)		(10	)

At 31 December 2025		759			17			132			24			15			17		54			1,018


Deferred tax liabilities	Intangible assets			Tangible assets			Deferred revenue			Partnership basis			Other			Total
At 1 January 2023		335			99			—			—			43			477

(Charged)/credited to the income statement		(217	)		(14	)		—			—			5			(226	)
Exchange difference 1		(8	)		(2	)		—			—			—			(10	)

At 31 December 2023		110			83			—			—			48			241

(Charged)/credited to the income statement		17			(22	)		—			—			(1	)		(6	)
Exchange difference 1		7			(2	)		—			—			—			5

At 31 December 2024		134			59			—			—			47			240

Additions through business combinations (Note 4)		—			10			209			344			—			563
Charged/(credited) to the income statement		(42	)		105			(6	)		(2	)		(2	)		53
Exchange difference 1		(14	)		(3	)		(3	)		(5	)		(2	)		(27	)

At 31 December 2025		78			171			200			337			43			829

1	A foreign exchange impact arises due to the translation of Group’s operations with a different functional currency than euro. This amounts to EUR 17 million as at 31 December 2025 (2024: EUR 3 million, 2023: EUR 8 million)