Eutelsat reported resilient third-quarter performance for fiscal year 2025-26, supported by strong growth in low earth orbit (LEO) connectivity services, rising government demand, and expanding mobility partnerships across aviation and maritime sectors. The satellite operator also confirmed its full-year outlook after completing a major refinancing and investment program valued at nearly €5 billion.
The company generated total third-quarter revenue of €293 million, compared with €300 million a year earlier. Operating vertical revenues reached €283.7 million, up 0.9 percent despite continued pressure in its traditional video broadcasting business. Connectivity revenues rose 15.3 percent to €155.7 million, led by surging demand for LEO-enabled services.
Connectivity Business Becomes Key Growth Driver
Connectivity accounted for 55 percent of Eutelsat’s quarterly revenues, overtaking the company’s traditional video division. LEO connectivity revenue increased 65 percent during the quarter to €62.2 million, highlighting the growing contribution from the OneWeb satellite constellation.
Fixed Connectivity revenue rose 10.6 percent to €60.3 million as Eutelsat expanded broadband services using its OneWeb and EUTELSAT KONNECT platforms. The company signed a new multi-year agreement with MTN Cote d’Ivoire to expand broadband access and digital inclusion services across underserved communities through community Wi-Fi hotspots.
Government Services revenue increased 11.8 percent to €50.4 million, driven by demand for LEO-enabled solutions in Ukraine and growing adoption among non-U.S. government customers. Eutelsat said it expects additional revenue contribution in the fourth quarter from the Nexus framework agreement with the French Ministry of Defence.
Mobile Connectivity revenue climbed 27 percent to €45 million, supported by strong growth in the aviation connectivity segment. Eutelsat announced a major in-flight connectivity agreement involving Japan Airlines, where more than 40 wide-body aircraft will deploy next-generation connectivity powered partly by the OneWeb LEO network.
Maritime, Aviation and Rail Customers Expand OneWeb Adoption
Eutelsat continues to expand its customer footprint across aviation, maritime and rail markets. The company revealed that 15 airlines have already committed to OneWeb-powered in-flight connectivity services, while over 600 aircraft installations have been completed. More than 160 private jets are also connected to the OneWeb network.
In maritime connectivity, Singapore-based Can Marine and India’s Station Satcom signed multi-year agreements to scale OneWeb connectivity deployment across global fleets. Station Satcom alone has more than 1,000 vessels in its current deployment pipeline.
The company is also developing rail-focused connectivity solutions through partnerships with Kymeta and Hughes Network Systems to create rail-certified hardware optimized for the OneWeb LEO network.
Video Business Continues to Decline
Eutelsat’s Video division generated €128 million in quarterly revenue, down 13.3 percent. The decline reflects sanctions affecting Russian broadcast channels, the termination of capacity contracts on Express AT1 and AT2 satellites, and broader structural weakness in the mature satellite television market.
However, the company secured several commercial renewals and partnerships during the quarter, including agreements with Viewsat in the Middle East and North Africa region, Mexico’s Cadena Tres and PCTV, and Caribbean connectivity provider Co-op Cable.
Order Backlog Stands at €3.4 Billion
Eutelsat’s backlog remained stable at €3.4 billion as of March 31, 2026, equivalent to 2.8 times fiscal year 2024-25 revenue. Connectivity services represented 58 percent of the backlog, underlining the company’s strategic transition toward broadband and enterprise connectivity markets.
For the first nine months of fiscal year 2025-26, total revenue reached €884.7 million. Connectivity revenue increased 13 percent to €463 million, while LEO revenue surged 61.6 percent to €172.7 million.
Eutelsat Completes €5 Billion Financing Strategy
Eutelsat announced the completion of a refinancing strategy designed to support medium-term growth and satellite investment plans. The program included a €1.5 billion senior notes offering, shareholder-backed capital increases, export credit financing, and extensions of bank debt maturities.
The company said the financing structure will support all projected investment requirements between 2026 and 2029.
Gross capital expenditure for fiscal year 2025-26 is expected to reach around €900 million, while net debt-to-EBITDA is projected at approximately 2.7x by year-end following the capital increase.
Outlook Focused on LEO Growth and Connectivity Leadership
Eutelsat reaffirmed its fiscal year 2025-26 guidance, expecting operating vertical revenue to remain broadly stable compared with fiscal year 2024-25 while forecasting 50 percent annual growth in LEO revenue.
Looking ahead to fiscal year 2028-29, the company expects operating vertical revenue to reach between €1.5 billion and €1.7 billion, supported by strong LEO demand and double-digit growth in the business-to-business connectivity market. Eutelsat also expects EBITDA margin improvement to at least 65 percent over the longer term.
