Eutelsat Communications: First Quarter 2025-26 Revenues

Eutelsat Communications reports revenues for the First Quarter ended 30 September 2025.

FIRST QUARTER REVENUES³

Total revenues for the First Quarter stood at €293 million, down 2.2% on a reported basis, and stable (‑0.3%) like-for-like.

Revenues of the four Operating Verticals (ie, excluding ‘Other Revenues’) stood at €283 million. They were down 1.2% on a like-for-like basis excluding a negative currency effect of €10 million. Quarter‑on‑quarter, revenues of the four Operating Verticals were down by 11% like-for-like.

Note: Unless otherwise stated, all variations indicated hereunder are expressed on a like-for-like basis, ie, at constant currency and perimeter.

Video (47% of revenues)

Video revenues amounted to €134 million, down 10.5% year-on-year, reflecting the secular market decline, as well as the negative effect of the latest sanctions imposed on Russian channels, with an impact of c. €16m expected in FY 2025-26.

On a quarter-on-quarter basis, revenues were down by 8.3%, notably reflecting the above-mentioned sanctions.

On the commercial front, Eutelsat secured contract renewals, confirming the 7/8° West video neighbourhood as the leading satellite position in MENA, notably the renewals of its longstanding partnership with key regional player, BHS Telecommunications.

Connectivity (53% of revenues)

First Quarter Connectivity revenues stood at €149.4 million, up 8.6% like-for-like year-on-year. They reflected a 70.7% rise in LEO revenues to €54.1 million, partially offset by a 10.1% decline in GEO revenues.

Quarter-on-quarter revenues were down by 13.2%. This sequential decline was mainly the reflection of an exceptionally high level of LEO terminal sales in Q4 2024-25 across all three verticals. LEO revenues were down 20.1%, reflecting the above-mentioned terminal sales as well as catch-up revenues recorded in Q4 FY25.

Fixed Connectivity

Fixed Connectivity revenues stood at €62 million, up 15.9% year-on-year, reflecting continuing growth in LEO services. Revenues were impacted by the cessation of revenue recognition from TIM on KONNECT-VHTS since January 2025.

On a quarter-on-quarter basis, revenues were down by 6%. This reflected in particular more challenging conditions for GEO-enabled solutions.

On the commercial front, Eutelsat signed a strategic partnership agreement with Tussas, Greenland’s national provider of telecommunications services, to deliver secure and resilient communications across the territory. Elsewhere, Eutelsat and Nelco (part of the Tata Group) signed an agreement to deliver OneWeb low Earth orbit satellite connectivity services across India.

Government Services

Government Services revenues stood at €52 million, up 18.5% year-on-year. This rise reflected the growing demand LEO-enabled connectivity solutions for governmental applications, notably with services delivered in Ukraine.

On a quarter-on-quarter basis, revenues were down 17%, reflecting mainly the above-mentioned terminal impact.

Mobile Connectivity

Mobile Connectivity revenues stood at €35 million, down 12.1% year-on-year. They mainly reflected lower GEO revenues as well as the non-recurrence of a one-off contract in aviation for c.€3 million in Q1 FY 2024-25.

On a quarter-on-quarter basis, revenues were down by 19%, reflecting revenue catch-up in Q4 FY25, and a slowdown in GEO in addition to the above-mentioned terminal impact.

Other Revenues

‘Other Revenues’ amounted to €10 million in the First Quarter versus €3 million a year earlier and €12 million in the Fourth Quarter of FY 2024-25. They included a €5 million positive impact from hedging operations in the First Quarter as well as revenue recognition from IRIS² related to Eutelsat’s involvement as Consortium System Development Prime.

BACKLOG

The backlog stood at €3.5 billion at 30 September 2025, stable versus end-June 2025. It was equivalent to 2.8 times FY 2024-25 revenues, with Connectivity representing 58% of the total.

Note: The backlog represents future revenues from capacity or service agreements and can include contracts for satellites under procurement. Managed services are not included in the backlog.

OUTLOOK AND FINANCIAL TARGETS

The First Quarter performance was in line with our expectations enabling us to confirm our FY 2025-26 financial objectives⁴:

• Revenues of the four operating verticals in line with the level of FY 2024-25.
• LEO revenues to grow by 50% year-on-year.
• Adjusted EBITDA margin slightly below the level of FY 2024-25.

Gross capital expenditure is expected in a range of €1.0-1.1 billion.

Following the contemplated capital increases announced in June 2025 and due to be completed by the end of calendar 2025, Net Debt/ Adjusted EBITDA is estimated at c.2.5x⁵ by year-end FY 2025-26.

Our longer-term objectives are also confirmed:

• Revenues of the four operating verticals between €1.5 and €1.7 billion⁶ by the end of FY 2028‑29, with LEO revenues significantly outperforming the market.
• Operating leverage driving a mid-to-high single-digit percentage point improvement in the EBITDA margin⁷, resulting in a margin of at least 60% by FY 2028-29.

In the longer term (post FY 2028-29), the B2B connectivity market is expected to pursue its growth at a double-digit rate, mostly driven by LEO market expansion.