EchoStar Corporation: Spectrum Optionality Intact; Capital Returns on Hold

Research evidence excerpt

EchoStar Corporation: Spectrum Optionality Intact; Capital Returns on Hold

mn) 1,889 2,215 17.2%

buybacks, and 4) dividends. The company raised its buyback authorization Adj. EBITDA - 27E ($ mn) 2,305 1,969 -14.6%

from $2.0b to $5.0b, though Ergen framed this as preserving optionality rather

Quarterly Forecasts (FYE Dec) than signaling intent. Ergen noted that "restrictions" in the company's bond

indentures limit the company's ability to repurchase shares, which we expect Adj. EPS ($)

2025A 2026E 2027E

to be lifted on the other side of the SpaceX spectrum sale, freeing EchoStar to Q1 (0.71) (0.51)A (0.02)

return capital to shareholders. On EchoStar Capital, Ergen pushed back on the Q2 (1.07) 24.07A 0.10

notion that it has been deprioritized following its consolidation under corporate Q3 (44.37) (0.57) (0.49)

Q4 (4.23) 0.18 0.37

development, describing the change as improving speed and efficiency as the FY (50.44) 23.25 (0.05)

company continues evaluating opportunities. On wireless, he underscored that

Boost remains strategically important and signaled a willingness to invest. On Style Exposure

potential spectrum acquisitions, Ergen believes EchoStar will not be precluded

from the upcoming C-band auction (rules pending), and would consider

secondary-market transactions where accretive and value-enhancing. Overall,

Ergen called the market "frothy" and flagged EchoStar's meaningful value

leverage to SpaceX, reinforcing a cautious near-term posture.

• Further asset monetization remains a key focus. While the closing of the

AT&T spectrum sale is encouraging and provides optionality, investor focus

remains centered on additional asset monetization. On the remaining

spectrum, EchoStar's portfolio spans AWS-3, CBRS, and 700 MHz, carried at