Eutelsat Gains Momentum in the Connectivity Pivot as LEO Drives Growth

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Eutelsat is accelerating its shift from a traditional TV operator to a modern connectivity specialist, and the latest half-year results illustrate the transformation taking shape. The figures for the first half of fiscal year 2025/26 highlight a structural reorientation: the old core is waning, while the new growth engines, led by the LEO segment, are expanding rapidly.

• Total revenue: ?574 million (slightly down on a like-for-like basis, about 0.6%).
• Growth driver: LEO segment up nearly 60% to ?111 million, now contributing roughly 20% to total revenue.
• Sorgenkind: Video business declines by 12.3%.

The half-year 2025/26 numbers underscore the urgency behind the company?s strategic realignment. While the top line shows only a modest organic decline, the underlying mix is shifting decisively toward the newer, faster-growing streams. The adjusted EBITDA for the period stood at ?308 million.

The Low Earth Orbit (LEO) business, driven largely by the OneWeb constellation, is accelerating at a brisk pace. Revenue in this segment jumped about 60% to ?111 million, and it now accounts for around 20% of Eutelsat?s total proceeds. This trajectory reinforces the management?s stance that the future lies in broadband internet access rather than traditional linear television.

By contrast, the conventional video segment remains under significant pressure, recording a 12.3% revenue drop. In this mixed backdrop, Eutelsat?s adjusted EBITDA reached ?308 million.

Investing to Sustain Momentum

To maintain the momentum in the LEO business, Eutelsat is pouring resources into its network infrastructure. The company confirmed an order for 440 new satellites of the next generation. This fleet is central to staying competitive in the global connectivity race.

Financing this ambitious rollout is secured by a new export-credit financing package valued at around ?1 billion. At the same time, Eutelsat is sharpening its profile in the defense sector: the introduction of a new military-grade terminal for the OneWeb network is aimed at government customers that require stable and secure communications.

Outlook and Strategic Confirmation

Management reaffirmed its financial targets for the ongoing fiscal year. With the backing of the new satellite-generation financing and the solid expansion of the LEO segment, Eutelsat expects to gain the runway needed to partially offset the ongoing decline in the video business.