Eutelsat's Strategic Pivot to Low Earth Orbit Gains Momentum

Eutelsat's OneWeb LEO revenue jumps to €110.5M, driving strategic shift. The firm secures €2.5B financing for new satellites and targets €1.5-1.7B revenue by FY28/29.

Eutelsat is laying the groundwork for its next strategic chapter, having recently completed a major refinancing round, placed a significant satellite order, and received updated analyst targets. While CEO Jean-François Fallacher expresses confidence in the direction, he acknowledges intensifying competition within the low Earth orbit (LEO) sector.

Financial Performance Highlights Strategic Shift

The company's results for the first half of fiscal 2025/26 underscore its evolving profile. Revenue from its LEO operations, driven by the OneWeb constellation, surged by nearly 60% to reach €110.5 million. This segment now contributes approximately 20% of the group's total revenue. The broader Connectivity division, which includes LEO, saw an 11.8% increase to €307.3 million.

On a group level, revenue remained stable on a like-for-like basis at €591.6 million. On a reported basis, it showed a slight decline of 2.4%. This was primarily due to a 12.3% contraction in the Video business, which generated €267 million. The division continues to face headwinds from further sanctions impacting Russian channels and the structural decline in the traditional broadcast market.

Securing Billions for Next-Generation Infrastructure

To cement its growth trajectory, Eutelsat has secured a comprehensive financing package. This initiative began with a €1.5 billion capital increase, followed by nearly €1 billion in financing arranged through export credit agencies. The proceeds are earmarked for 440 new LEO satellites, designed to technologically upgrade the existing OneWeb network. In response to this strengthened financial position, rating agencies Moody's and Fitch have upgraded the company's credit rating.

Looking to the medium term, Eutelsat is targeting revenue between €1.5 billion and €1.7 billion by the close of fiscal year 2028/29. A solid foundation for this goal is provided by its current order backlog, which stands at €3.4 billion—equivalent to 2.7 times the prior year's revenue. Notably, Connectivity already accounts for 59% of this backlog.

Leveraging European Sovereignty with IRIS²

Strategically, Eutelsat is emphasizing its European roots. It is positioning itself as a preferred alternative for government clients seeking to avoid reliance on U.S. providers. A key element of this strategy is its role in the European Union's IRIS² project, a planned constellation of 264 LEO and 18 MEO satellites. As part of the SpaceRISE consortium, Eutelsat will serve as a LEO capacity provider. Full operational services under this initiative are anticipated by 2030.

Investors will gain further insight into the progress of this strategic shift when Eutelsat publishes its third-quarter revenue figures on May 12, 2026. This update will reveal whether the LEO segment can maintain its current growth pace and if the company's target of roughly 50% full-year LEO revenue growth remains achievable.