France's Eutelsat FY revenue beats on strong LEO growth
France's Eutelsat FY revenue beats on strong LEO growth
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
Reuters Recommended Reads
Aug 4 - SpaceX revenue jumps in debut results as satellite, AI businesses surge
Aug 6 - KVH Industries Q2 revenue rises on LEO service growth
Aug 6 - BlackSky Q2 revenue rises 50%, beats analyst estimates
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
Recent news on Eutelsat Communications SA
See all newsEuropean telecom groups mull bid for mobile satellite spectrum (updated)
Polish satellite maker Creotech plans tenfold capacity boost, warns of Europe’s US rocket reliance
European satellite stocks rally as investors reassess Starlink rivals (updated)
Eutelsat shares extend rally after Ukraine's Starshield limits
Can Europe step in as Ukraine struggles with Starlink and US satellite data? (updated)