Eutelsat Communications S.A.

Reported full-year FY25-26 revenue was EUR 1.2359 billion, down 0.6% on a reported basis and up 3% like-for-like. Adjusted EBITDA was EUR 632 million, down from EUR 666 million a year earlier, with margin at 51.2% versus 54.4%. CapEx was EUR 594 million versus EUR 450 million a year earlier and below the EUR 900 million expectation; net debt was EUR 1.46 billion and net debt/EBITDA was 2.32x. Looking ahead, management guided FY27 LEO revenue growth of over 30%, slight growth in total revenues from the four operating verticals, and EBITDA margin broadly flat versus last year. For FY29, the company reiterated revenue guidance of EUR 1.5 billion to EUR 1.7 billion and said operating EBITDA margin should be above 60% by then; FY27 gross CapEx is expected to be around EUR 1.2 billion.

Jean-François Fallacher struck an upbeat but still pragmatic tone, saying the company is becoming more commercially, financially, and strategically solid. He emphasized that LEO growth is translating into real customer wins across government, fixed, mobile, maritime, aviation, and rail, while GEO remains a cash-generating legacy business that is declining as expected. He also framed IRIS2 as a major strategic milestone that reinforces Eutelsat’s role in Europe’s sovereign connectivity plans and supports the long-term roadmap.

Sébastien Rouge focused on profitability, CapEx, and balance-sheet repair. He said adjusted EBITDA declined to EUR 632 million, operating expenses were EUR 604 million, and the EBITDA margin fell to 51.2% because LEO is still less profitable than the established GEO business. He highlighted CapEx of EUR 594 million, lower than expected due to milestone phasing, and said FY27 CapEx should rise to about EUR 1.2 billion, with a medium-term envelope of about EUR 4 billion from FY26 to FY29 funded by the EUR 5 billion refinancing package. He also cited net debt of EUR 1.46 billion, average debt cost of 4.37%, average maturity of 4.2 years, and liquidity of EUR 2.3 billion cash plus undrawn credit lines, along with about EUR 690 million of undrawn ECA facility.

Analysts pressed on why FY27 revenue guidance implies another flat year, and management said Video will remain weak for another year, with growth coming later as the LEO business continues to scale and Video declines begin to stabilize from FY28. They also asked whether the strong Q4 Government Services result was a one-off; management said the quarter was exceptional because it included catch-up revenue recognition tied to the French MOD contract signed in June, so it should not be extrapolated quarter by quarter. Questions on margin guidance drew the response that LEO is still less profitable than GEO, creating mix pressure. On CapEx, management repeated that the EUR 4 billion FY26-FY29 envelope is confirmed and is phased to support constellation renewal and IRIS2. They also declined to give more IRIS2 revenue detail on the call, saying a separate release would follow.