Eutelsat Posts 60% Surge in LEO Revenues in First Half 2025–26

Eutelsat Communications  has reported its financial results for the second quarter and first half of the 2025–26 financial year, confirming that performance is in line with expectations and that the company remains on track to meet its full-year objectives. The results were reviewed by the Board of Directors chaired by Éric Labaye.

For the first half ended 31 December 2025, total revenues stood at €591.6 million, representing a 2.4% decline on a reported basis but remaining broadly stable on a like-for-like basis. Revenues from the four operating verticals reached €573.8 million, down slightly by 0.6% like-for-like. Within this, Low Earth Orbit (LEO) revenues grew strongly by nearly 60% to €110.5 million and now account for approximately 20% of total revenues. This growth reflects sustained commercial momentum across connectivity services.

Adjusted EBITDA for the period stood at €308.2 million, down 8% year-on-year and 6.1% on a like-for-like basis. The adjusted EBITDA margin declined to 52.1% from 55.2% a year earlier. The decrease was mainly driven by sanction-related losses in the Video business and the product mix effect within LEO revenues during the ramp-up phase. Despite this, the company significantly reduced its net loss, with the group share of net result improving to a loss of €236.5 million compared with a loss of €873.2 million in the previous year, which had been heavily impacted by impairments.

Video revenues, which account for 46% of total revenues, declined by 12.3% to €266.5 million in the first half, largely due to additional sanctions affecting Russian channels as well as structural pressures in this mature segment. In contrast, Connectivity revenues, representing 54% of total revenues, increased by 11.8% to €307.3 million. Growth was driven primarily by LEO services, which rose 59.7% year-on-year, while GEO revenues declined by 4.5%.

Fixed Connectivity revenues rose 17.2% to €132.1 million, supported by strong demand for LEO-enabled solutions and a one-off contract recognition. Government Services revenues increased 7.7% to €98.6 million, reflecting demand for LEO solutions, including services delivered in Ukraine and other government contracts. Mobile Connectivity revenues grew 8.5% to €76.6 million, supported by increased activation of aero mobility contracts, with nearly 600 certified antenna installations completed during the period.

The company also strengthened its financial structure through a successful €1.5 billion capital raise supported by core shareholders. This refinancing initiative led to credit rating upgrades from Moody’s and Fitch and enabled the company to secure nearly €1 billion in Export Credit Agency financing. As a result, net debt was reduced significantly to €1.3 billion, and the net debt to adjusted EBITDA ratio improved to 2.00x, compared to 3.92x a year earlier.

Capital expenditure for the first half amounted to €291.5 million, reflecting key milestones in LEO investment programs. Full-year capex is now expected to be around €900 million, lower than the previously anticipated €1.0–1.1 billion range. The company also cancelled the procurement of the “Flexsat Americas” satellite, resulting in future savings of over €100 million.

Operationally, the company secured the procurement of 440 LEO satellites to ensure long-term continuity and technological enhancement of the OneWeb constellation. This move strengthens service reliability and positions the company for future growth. In addition, a planned disposal of passive ground infrastructure assets did not proceed, though this has no impact on the company’s ability to finance its strategic development plans.

Looking ahead, Eutelsat Communications confirmed its financial objectives for FY 2025–26. It expects combined revenues from the four operating verticals to remain in line with the previous year, with LEO revenues projected to grow by 50% year-on-year. The adjusted EBITDA margin is expected to be slightly below last year’s level. Over the medium term, the company anticipates revenue growth to between €1.5 billion and €1.7 billion by FY 2028–29, supported by strong expansion in the LEO connectivity market.

Overall, the first half of 2025–26 marked a pivotal period for the company, characterized by financial strengthening, strategic investment in LEO infrastructure, and continued momentum in connectivity services, positioning it for sustainable long-term growth.