The French satellite operator Eutelsat is navigating a significant strategic shift. Its latest half-year results for 2025-26 underscore a company in transition, where explosive growth in Low Earth Orbit (LEO) services is beginning to counterbalance a stagnating traditional satellite business.
Financial Snapshot: A Tale of Two Segments
The company’s reported figures reveal the contrasting dynamics at play. Total revenue reached €592 million, representing a reported decline of 2.4% but remaining stable on a like-for-like basis. The standout performance came from the LEO division, where revenues surged by 59.7% to €111 million. This growth phase, however, is impacting profitability in the short term; the adjusted EBITDA margin contracted by 3.4 percentage points to 52.1%.
Aviation Sector Provides Powerful Validation
The most compelling evidence of Eutelsat’s LEO strategy taking flight comes from the aviation sector. The company’s in-flight connectivity business is experiencing remarkable acceleration. In just six months, the number of aircraft with installed antennas skyrocketed from 100 to nearly 600. Furthermore, the order backlog for these installations expanded from 1,000 to over 1,500 aircraft during the same period.
This rapid adoption highlights Eutelsat’s evolving profile. Revenue from its LEO operations, driven by the OneWeb constellation of more than 600 satellites orbiting at 1,200 kilometers, now constitutes approximately 20% of total group revenue—a share that is climbing steadily.
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Securing Capital for Expansion Amid Setbacks
To fund its ambitious growth plans, Eutelsat secured a substantial €975 million export credit financing package in early February. Backed by a French state guarantee via Bpifrance, these funds will support a contract with Airbus Defence and Space in Toulouse for 340 new satellites, aiming to expand the constellation beyond 1,000 units.
The path forward encountered a hurdle, however. A separate plan to raise €550 million through the sale of its ground antenna infrastructure to private equity firm EQT was blocked by the French government in January. Finance Minister Roland Lescure deemed the assets strategically important for both civilian and military communications. CEO Jean-François Fallacher expressed disappointment at the decision but emphasized that the company’s core development plan remains fully financed.
Navigating the Transition’s Financial Realities
The pressure on the adjusted EBITDA margin to 52.1% illustrates the financial complexities of this corporate transformation. Eutelsat attributes the decline to sanction-related losses in its legacy video segment and the product mix associated with ramping up LEO operations. This underscores the near-term margin pressures inherent in shifting from the established geostationary (GEO) satellite business to the fast-growing LEO market.
Looking ahead, Eutelsat has set a revenue target of €1.5 to €1.7 billion for the 2028-29 financial year. The French state, which holds a stake of nearly 30% and remains the largest shareholder, continues to exert direct influence on strategic matters, as evidenced by its intervention in the antenna sale.
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