Eutelsat Posts Narrower Loss, Sees Strong LEO Growth Ahead

Eutelsat Communications reported full-year results that surpassed market expectations, with revenue reaching €1.24 billion against a consensus of €1.20 billion. The satellite operator's adjusted EBITDA came in at €632 million, slightly above the €628 million analysts had predicted.

The company posted an operating loss of €220.1 million for the year, while the group share of net result was negative at €457.3 million. Net debt stood at €1.46 billion. Revenue from the company's four operating verticals totaled €1.20 billion, also beating the consensus estimate of €1.17 billion.

Looking ahead, Eutelsat said it expects revenue from its low Earth orbit (LEO) constellation to grow by more than 30% in fiscal 2026-27, driven by strong demand across all three verticals. The company reaffirmed its longer-term revenue target of €1.5 billion to €1.7 billion for the year ending June 2029.

For the current fiscal year, Eutelsat anticipates slight growth in revenue from its four operating verticals and an EBITDA margin broadly in line with last year. Gross capital expenditure is expected to be around €1.2 billion. The company also expects operating leverage to push the EBITDA margin above 60% in the medium term.

Eutelsat confirmed it expects to receive $504 million in incentive payments related to US C-band clearing. The company also expressed confidence that the outcome of the first rendez-vous of its IRIS satellite is imminent. Backlog stood at €3.4 billion at year-end.