State-Backed Financing Clears the Way for Eutelsat’s LEO Push

Eutelsat, the French-British satellite operator, has reached a pivotal point after releasing its half-year results: the legacy GEO business is flat, while the burgeoning LEO segment is on a rapid growth trajectory. The company has secured a multi-hundred-million euro funding package backed by the state to accelerate the expansion.

Die wichtigsten Entwicklungen:
- LEO revenue rose nearly 60% to ?110.5 million
- Net debt reduced by half to ?1.3 billion
- State-backed financing of ?975 million secured for OneWeb expansion
- Large contract for 340 satellites awarded to Airbus Defence and Space

LEO-Boom kompensiert GEO-Schwhe
In the first half of the 2025-26 period, Eutelsat posted total revenues of ?591.6 million, a nominal drop of 2.4%. On a currency-adjusted basis, the group remained stable. The LEO segment drove the growth with a near 60% increase to ?110.5 million, contrasting with weakness in the traditional video business, which is hampered by sanctions.

The operating EBITDA margin slipped by 3.4 percentage points to 52.1%. The shift in product mix during the LEO ramp-up and the loss of revenue from geopolitical restrictions contributed to the margin decline. Net income came in at a loss of ?236.5 million, significantly better than the prior year?s ?873.2 million loss.

Französischer Staat garantiert OneWeb-Finanzierung
Shortly before publishing results, Eutelsat secured an export credit agency facility totaling about ?975 million. A consortium of commercial banks is backed by a guarantee from the French state-run lender Bpifrance Assurance Export. The drawdown is contingent on a successful bond issue.

These funds are being deployed to finance a contract for 340 LEO satellites with Airbus Defence and Space in Toulouse. When combined with the previously ordered 100 units, the total order for 440 satellites supports the renewal of the OneWeb constellation.

Bilanz deutlich entlastet
Net debt at the end of 2025 declined to ?1.3 billion, down ?1.4 billion from June 2025. The principal driver was the ?1.5 billion capital increase. The debt load relative to EBITDA improved from 3.88x to 2.0x. Credit ratings agencies Moody?s and Fitch responded with upgrades.

The previously contemplated sale of ground infrastructure assets to EQT Infrastructure VI, announced late January, would have generated an additional ?550 million in liquidity, but management stresses that the strategic financing is independent of that potential sale.

Prognose bestätigt
For the full year 2025-26, Eutelsat maintains its targets: operating revenues are expected to remain stable while the LEO segment is projected to grow by about 50%. The adjusted EBITDA margin is anticipated to be slightly below the prior year. With the state-backed financing in place, the group has established a solid footing to advance its satellite fleet expansion.