Eutelsat Communications is undergoing a significant strategic shift, pivoting sharply towards Low Earth Orbit (LEO) satellite technology. Recent financial results reveal a stark contrast between the company’s traditional video business, which continues to decline, and its burgeoning LEO operations, which are experiencing explosive growth. The company reported nearly 60% revenue growth in its LEO segment, signaling a clear direction for the future.
For the six months ending December 31, 2025, Eutelsat’s total group revenues reached €591.6 million, a decrease of 2.4% on a reported basis but remaining broadly stable on a like-for-like comparison. Connectivity revenues rose 11.8% year-on-year to €307.3 million, largely fueled by the success of its LEO initiatives. LEO revenues specifically jumped 59.7% to €110.5 million, now accounting for approximately 20% of the company’s total revenue and over a third of its connectivity sales. In contrast, revenues from Geostationary Earth Orbit (GEO) satellites declined by 4.5% to €196.8 million.
The traditional video business continues to struggle, with revenues falling 12.3% to €266.5 million. This decline is attributed to the impact of sanctions on Russian channels and ongoing structural pressures within the broadcast market, as viewers increasingly migrate to streaming services and terrestrial transmission methods.
This two-tiered business reality is becoming the new normal for Eutelsat. The company’s LEO activities, primarily driven by the OneWeb constellation, are growing at an almost 60% rate, representing a fifth of the company’s overall revenue. This growth is a key component of the overall increase in connectivity revenue.
Eutelsat has secured nearly €1 billion in Export Credit Agency financing to support the procurement of 440 new LEO satellites from Airbus. This investment is designed to ensure the continued operation and technological advancement of the OneWeb constellation, underlining the company’s commitment to multi-orbit connectivity. The move reinforces the company’s strategic focus on LEO as a core growth driver.
Adjusted EBITDA decreased by 8% year-on-year to €308.2 million, with the EBITDA margin declining to 52.1% from 55.2%. This reduction reflects the financial impact of scaling up LEO activities and the effects of sanctions on the video business. Despite these challenges, the group’s net loss narrowed significantly to €236.5 million, a substantial improvement compared to the €873.2 million loss reported in the previous year.
The company’s contracted backlog stood at €3.4 billion at the end of December, down from €3.7 billion a year earlier. Eutelsat also strengthened its financial position through a €1.5 billion capital raise and the aforementioned Export Credit Agency financing, leading to rating upgrades from Moody’s and Fitch. Net debt decreased to €1.3 billion, with the net debt-to-adjusted EBITDA ratio improving to 2.0x from 3.92x.
Jean-François Fallacher, Chief Executive Officer of Eutelsat Communications, commented on the results, stating the first half of the fiscal year marked “a decisive step forward” for the company. He highlighted the successful refinancing plan and the secured long-term operational continuity of the LEO constellation, expressing confidence in unlocking the full potential of the LEO business and delivering sustainable value.
Eutelsat is maintaining its full-year revenue and adjusted EBITDA margin objectives. The company anticipates stable revenue compared to the previous year, around 50% growth in LEO revenue, and an EBITDA margin slightly below the prior year’s level. The company’s stock has seen significant recovery over the past year, though experienced some consolidation following the release of these results, likely due to profit-taking.
The numbers demonstrate that Eutelsat’s bet on LEO connectivity is gaining momentum, while the legacy business is being systematically scaled back. The company’s financial maneuvering and strategic investments suggest a long-term commitment to becoming a major player in the rapidly evolving LEO satellite market.
