Eutelsat Shares Surge on Strong LEO Revenue Growth

Eutelsat Communications (ETL) saw its shares jump over 7% today following the release of its H1 2025-26 results, driven by a near 60% surge in revenues from its Low Earth Orbit (LEO) business.

The satellite operator's strategic shift towards LEO connectivity appears to be resonating with markets, offsetting declines in its legacy video segment.

Total revenues for the first half of the fiscal year landed at €591.6 million, a slight decrease of 2.4% on a reported basis but stable on a like-for-like comparison. Operating verticals revenues, excluding ‘Other Revenues', amounted to €573.8 million, down a marginal 0.6% like-for-like.

Adjusted EBITDA came in at €308.2 million, a decrease of 6.1% on a like-for-like basis, resulting in an Adjusted EBITDA margin of 52.1%. This contraction reflects the impact of sanctions on video revenues and the evolving product mix within the expanding LEO business.

The company has significantly strengthened its financial position through a successful €1.5 billion capital raise and nearly €1 billion in Export Credit Agency financing. Net debt has been reduced substantially, falling to €1,300.9 million, bringing the net debt to Adjusted EBITDA ratio down to 2.00x.

This deleveraging provides Eutelsat with increased financial flexibility to execute its strategic roadmap, particularly its investments in next-generation LEO technology. Furthermore, the procurement of 440 LEO satellites ensures operational continuity and enhanced service capabilities for its OneWeb constellation.

Jean-François Fallacher, Chief Executive Officer of Eutelsat Communications, stated, “The first half of FY 2025-26 marked a decisive step forward for Eutelsat… With financing secured and our growth strategy clearly on track, we are entering the next phase with confidence.”

Eutelsat reaffirmed its full-year 2025-26 objectives, including combined revenues of the four operating verticals in line with FY 2024-25 and LEO revenue growth of 50% year-on-year. Gross capital expenditure is now expected around €900 million. The company anticipates revenues between €1.5 and €1.7 billion by the end of FY 2028-29, driven by the LEO business.

The non-completion of the transaction regarding the disposal of Eutelsat’s passive ground segment infrastructure assets does not affect Eutelsat’s ability to fund the capital expenditure related to its strategic growth trajectory.