France's Eutelsat FY revenue beats on strong LEO growth

Eutelsat Communications SA

07/08/2026 06:43

Overview
France satellite operator's FY 2025-26 revenue beat analyst expectations, up 3% like-for-like
Adjusted EBITDA margin fell to 51.2%, reflecting lower video revenue and LEO ramp-up costs
LEO segment revenue surged nearly 70%, now 25% of total revenue

Outlook
Eutelsat expects LEO revenue to rise over 30% in FY 2026-27
Company sees slight growth in Operating Verticals revenue and stable EBITDA margin in FY 2026-27
Eutelsat forecasts gross capex around €1.2 bln for FY 2026-27

Result Drivers
LEO GROWTH - Co said nearly 70% rise in LEO revenue was driven by strong demand for secure, low-latency connectivity in government and enterprise markets
VIDEO REVENUE DECLINE - Co attributed 13% drop in video revenue to market trends, sanctions on Russian channels, and termination of satellite contracts
EBITDA MARGIN PRESSURE - Co said lower margin reflected video revenue loss and LEO product mix during ramp-up stage

Company press release: ID:nBw3ZV9fqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Beat
EUR 1.24 bln
EUR 1.20 bln (7 Analysts)
FY Net Debt
 
EUR 1.46 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the wireless telecommunications services peer group is "buy."
Wall Street's median 12-month price target for Eutelsat Communications SA is €2.50, about 16.7% above its August 6 closing price of €2.14

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)