Eutelsat Communications

Latest Results (30.05.2026):

Eutelsat Communications — Second Quarter (Q2) and First Half (H1) of FY 2025‑26 (period ended 31 December 2025): the group delivered results broadly in line with expectations. H1 total revenues were €591.6m (‑2.4% reported, +0.1% like‑for‑like) with Operating Verticals at €573.8m (almost stable LFL). LEO revenue momentum continued (H1 €110.5m, +≈60% LFL, ~20% of revenues). Adjusted EBITDA was €308.2m (margin 52.1%, down ~3.4 pts LFL). The company materially strengthened its balance sheet via a €1.5bn capital raise, significant ECA financing (~€1bn) and credit‑rating upgrades, and secured operational continuity with procurement of 440 LEO satellites. Management confirmed FY 2025‑26 objectives and reiterated medium‑term targets driven by LEO growth.

Headline financials (H1 2025‑26)

Total revenues: €591.6m (H1), ‑2.4% reported / +0.1% like‑for‑like. Operating Verticals: €573.8m (‑0.6% LFL). Adjusted EBITDA: €308.2m; margin 52.1% (down ~3.4 pts LFL). Group share net result: loss of €236.5m (marked improvement vs. €873.2m loss a year earlier).

LEO growth driving connectivity

LEO revenues reached €110.5m in H1 (up ~59.7% LFL), now ~20% of total revenues. Connectivity overall grew (+11.8% LFL H1), with Fixed, Mobile and Government verticals all contributing to the uplift. GEO revenues declined modestly but were offset by LEO momentum.

Profitability and drivers

Adjusted EBITDA fell slightly to €308.2m (‑6.1% LFL) and margin eased to 52.1%, reflecting sanction‑related Video revenue losses and LEO product‑mix effects during ramp‑up. Operating costs rose modestly and non‑recurring impairments that hit the prior year did not recur, improving the profit‑and‑loss comparatives.

Balance sheet & refinancing

Net debt reduced to €1,300.9m (from €2,695.8m prior), giving Net debt / Adjusted EBITDA of 2.00x (LTM). The group completed a €1.5bn capital raise, secured ~€1bn in Export Credit Agency financing, and saw rating upgrades from Moody’s and Fitch — strengthening refinancing flexibility.

Capex, procurement and guidance

Gross Capex in H1: €291.5m (higher due to LEO milestones). FY capex guidance reduced to ~€900m (from €1.0–1.1bn) due to phasing and program reviews (including cancellation of the Flexsat Americas procurement saving >€100m). Eutelsat procured 440 LEO satellites to secure OneWeb operational continuity.

Backlog, Q2 detail & outlook

Backlog: €3.4bn (down ~9% year‑on‑year), equivalent to ~2.7x prior‑year revenues; Connectivity represents ~59% of backlog. Q2 revenues were ~€298m, broadly stable LFL. Management confirmed FY 2025‑26 objectives (operating verticals in line with FY24‑25, LEO revenues +50% FY, EBITDA margin slightly below FY24‑25). Medium‑term targets: revenues €1.5–1.7bn and EBITDA margin ≥65% by FY 2028‑29, driven by LEO.

Other operational & corporate points

The planned disposal of passive ground segment did not complete (announced Jan 29, 2026); management says this does not change FY25‑26 objectives but modestly affects year‑end Net debt/EBITDA guidance (~2.7x). Continued CSR and space‑sustainability initiatives and several commercial renewals and new LEO contracts were also highlighted.