Eutelsat Confirms 2025-26 Goals, Boosted by LEO Growth
Eutelsat Communications reports a third-quarter revenue of EUR 293.0 million, down 2.3% in reported figures but up 3.1% on a comparable basis. Marked by a 65% acceleration in LEO and a persistent contraction in Video activities (-13.3%), this release confirms the group's strategic shift towards low-earth orbit satellite connectivity. The operator is finalizing a global refinancing program of EUR 5 billion and reaffirms its goals for the 2025-26 fiscal year.
LEO Compensates for the Inexorable Decline in Video
The revenue from operational activities in Q3 2025-26 reached EUR 283.7 million, up 0.9% on a comparable basis. This near-stability masks a major redistribution within the portfolio: LEO revenues (low-earth orbit activities) increased by 65% to EUR 62.2 million, while the Video segment contracted by 13.3% to EUR 128.0 million. The decline in Video reflects both regulatory impacts (sanctions against Russian channels estimated at EUR 16 million annually) and the termination of capacity contracts on the Express AT1 and AT2 satellites. The GEO segment of Connectivity activities also faced pressure (-4.3% in comparable terms) amid a challenging environment, partially offset by the growth in Fixed (+10.6%) and Mobile (+27%) LEO Connectivity solutions. Connectivity as a whole accounted for 55% of the quarterly revenue (EUR 155.7 million), up 15.3% year-over-year. Government Services also grew by 11.8% to EUR 50.4 million, supported by demands for low-earth orbit connectivity notably in Ukraine and the needs of non-American administrations.
Stable Order Book but Changing Composition
The order book stood at EUR 3.4 billion as of March 31, 2026, stable compared to December 31, 2025, but slightly down from EUR 3.6 billion a year earlier. This balance results from natural erosion largely offset by the renewal of the Polsat contract and an increase in the LEO order book. Connectivity accounts for 58% of the total order book, reflecting the group's repositioning strategy. The order book to annualized revenue ratio (2.8 times) confirms satisfactory visibility, although the cumulative impact of sanctions against Russian channels continues to weigh on future revenues of the Video segment.
Refinancing Finalized and Outlook Confirmed for 2025-26
Eutelsat finalized its global refinancing program of approximately EUR 5 billion in March 2026, including a senior bond issue of EUR 1.5 billion and a capital increase supported by major shareholders. The group projects a net debt/EBITDA ratio of about 2.7 times by the end of the 2025-26 fiscal year. Management confirms its goals for the 2025-26 fiscal year: revenue from the four operational activities at the same level as 2024-25, LEO growth of 50%, slightly lower adjusted EBITDA margin than the previous year, and estimated gross investments of EUR 900 million. In the medium term (2028-29), Eutelsat aims for a revenue between EUR 1.5 and 1.7 billion, supported by strong LEO dynamics, and an adjusted EBITDA margin of at least 65%.
