Eutelsat Reports Semi-Annual Results in Line with Expectations and Strengthens Financial Structure
On Friday, Eutelsat Communications released its results for the first half of the fiscal year 2025-26, characterized by stable revenue from operational activities and a significant improvement in its debt situation. The satellite operator successfully completed its refinancing program, with a capital increase of 1.5 billion euros and financing of nearly one billion euros from the French state.
Stable Revenue Amidst Minor Declines
The total revenue for the first half amounted to 591.6 million euros, down 2.4% on a reported basis but stable on a comparable basis. The four operational activities generated 573.8 million euros, almost stable at -0.6% on a comparable basis, reflecting a negative currency impact of 22 million euros.
Adjusted EBITDA Declines with Improved Debt Metrics
The adjusted EBITDA for the semester was 308.2 million euros, down 6.1% on a comparable basis, while the adjusted EBITDA margin stood at 52.1%, down 3.4 points. This contraction reflects the loss of video revenue due to sanctions and the product mix effect within the ramping up LEO revenues. The transformation of the financial structure was the major success of the semester. Net debt amounted to 1,300.9 million euros, a decrease of 1,394.9 million euros compared to December 2024, following the net proceeds of 1,475.8 million euros from the capital increase. The net debt/adjusted EBITDA ratio improved significantly, from 3.92x to 2.00x. Credit rating agencies Moody's and Fitch upgraded Eutelsat's ratings by two and three notches respectively. The average cost of debt decreased to 4.17% after hedging instruments, compared to 4.84% a year earlier. Available liquidity, including credits and cash, amounted to approximately 2.1 billion euros.
Operational Continuity Secured and Unsuccessful Infrastructure Sale
Eutelsat has secured the operational continuity of its OneWeb constellation by ordering 440 new satellites, allowing for the gradual replacement of end-of-life satellites. The operator also signed a partnership with MaiaSpace for launches starting in 2027, thus diversifying its access to space. On an event basis, the operation to sell passive ground infrastructure to EQT Infrastructure VI did not materialize in January 2026, due to the failure to obtain regulatory approvals, without impacting the financial objectives for the fiscal year. The performance of the first half allows Eutelsat to confirm its annual targets: stable revenue from operational activities compared to 2024-25, a 50% increase in LEO revenues, an adjusted EBITDA margin slightly lower than the previous year, and revised gross investments of about 900 million euros instead of 1.0 to 1.1 billion euros.
