Eutelsat: LEO accounts for 25% of revenue, net debt reduced by €1.16 billion
Eutelsat Communications has closed its annual accounts as of June 30, 2026, marked by the ramp-up of its low Earth orbit (LEO) activity.
The group is posting results in line with its projections, with operational activity revenue up 1.8% on a comparable basis and adjusted EBITDA margin of 51.2%, while net debt declined by €1,162 million following a €5 billion refinancing.
LEO at €297 million, one quarter of group revenue
For the 2025-26 fiscal year, total revenue came in at €1,235.9 million, down 0.6% on a reported basis and up 3.0% on a comparable basis. Revenue from the four operational activities reached €1,197.1 million, up 1.8% at constant scope.
LEO activity generated €297 million, up 69.5% on a comparable basis, and now accounts for 25% of total revenue compared with approximately 15% in the previous fiscal year. It represents more than 40% of revenue in the Connectivity segment, which reached €677.9 million (+16.4% at constant scope).
In contrast, the GEO segment declined 6.6% to €380.9 million and Video activity (43% of revenue) fell 13.1% to €519.2 million, due to sanctions imposed on Russian channels and the termination of capacity agreements on the Express AT1 and AT2 satellites.
EBITDA margin at 51.2% and net debt reduced following refinancing
Adjusted EBITDA came in at €632.4 million, down 6.5% on a reported basis and 3.1% at constant scope. The adjusted EBITDA margin stood at 51.2%, compared with 54.4% a year earlier, a decline of 3.2 percentage points, which the group attributes to revenue loss in Video and the product mix effect related to the LEO ramp-up phase.
Net profit attributable to the group remains negative at -€457.3 million, compared with -€1,081.9 million in the previous fiscal year. This change is explained in particular by a decrease in other operating expenses, falling from €777 million to €153.2 million, as the prior year was marked by goodwill and satellite impairments of €720 million against €111 million this year.
Net debt declined by €1,162 million to €1,464.6 million, notably thanks to the net proceeds from the capital increase of €1,469 million. The net debt to adjusted EBITDA ratio moved from 3.88x to 2.32x, following an overall refinancing of €5 billion.
LEO growth above 30% and capex raised to €1.2 billion
For the fiscal year ending June 2027, Eutelsat expects LEO revenue growth of more than 30%, which should offset the decline in GEO revenues, particularly in Video. The group anticipates a slight increase in revenue from its four operational activities and an EBITDA margin roughly at the same level as the previous fiscal year.
Gross capital expenditures, which totaled €593.9 million in 2025-26 (compared with €449.8 million a year earlier and a threshold of €900 million initially expected), should reach approximately €1.2 billion in 2026-27, as part of an investment plan of approximately €4 billion over the 2026-2029 period.
Following the FCC decision of July 27, 2026 on the release of the C-band in the United States, Eutelsat will receive compensation of $504 million (€443 million) before taxes, subject to implementation of the migration according to two deadlines set in 2031. The order backlog stood at €3.4 billion as of June 30, 2026, compared with €3.5 billion a year earlier, with Connectivity now representing 61%.
