Refinancing Clears the Path for Eutelsat's OneWeb Push

Eutelsat has delivered mid-year results that not only report figures but also signal a reshaped capital structure. The completed refinancing significantly trims leverage and gives the satellite operator more headroom to expand the OneWeb LEO constellation. The question remains how sustainable the operating trend is when overall revenue is barely growing.

• H1 2025/26 revenue: ?592 million, adjusted down 2.4%; on a like-for-like basis, flat
• LEO revenue: ?111 million, up 60%, representing roughly 20% of total revenue
• Adjusted EBITDA: ?308 million, EBITDA margin 52.1%
• Net debt: ?1.3 billion, Net debt/EBITDA: 2.0x
• Shares moved higher by more than 5% on Friday, with turnover above 5 million shares

LEO grows, but margins retreat

The operational story is dominated by the LEO business, where revenue increased about 60% to ?111 million, reflecting ongoing commercial momentum behind the OneWeb constellation. Profitability remained strong, yet the margin softened: the adjusted EBITDA of ?308 million implies an EBITDA margin of 52.1%. On a like-for-like basis, margins fell by 3.4 percentage points. Eutelsat cites sanctions-related losses in the video segment and the mix of products during the LEO ramp as contributors to the margin pressure.

Refinancing drives a meaningful debt reduction

The centerpiece of the interim report is the refinancing package, which funded the balance sheet refresh. The company raised ?1.5 billion through an equity issue, backed by core shareholders. Credit ratings were upgraded: Moody?s lifted Eutelsat two notches to Ba3, and Fitch increased theirs by three steps to BB with a stable outlook. Additionally, Eutelsat secured approximately ?1 billion in ECA financing, guaranteed through Bpifrance Assurance Export.

The effect is visible in the balance sheet: net debt as of 31 December 2025 stood at ?1.3 billion, about ?1.33 billion lower than the position at the end of June 2025. The net debt/EBITDA ratio improved to 2.0x, versus 3.88x at the end of the previous financial year.

Satellites plan in place, asset sale not closed

Operational continuity relies on a robust satellite procurement program: Eutelsat announced plans for a total of 440 LEO satellites, comprising 340 additional units on top of an earlier order for 100 satellites. The objective is to replace satellites reaching the end of their life, maintaining a steady supply of spacecraft for the OneWeb network. A Multi-Launch contract with MaiaSpace is set to begin delivering launches from 2027.

One deal that did not close was the proposed sale of passive ground infrastructure assets to EQT Infrastructure VI. The transaction did not proceed because not all conditions were met; net proceeds were expected to be around ?550 million. Eutelsat notes that this setback does not jeopardize the financing of its strategic development plan.

Outlook and guidance reaffirmed

Looking ahead, management reaffirmed its targets for 2025/26 but trimmed investment plans to reflect a lower capex footprint. Capex guidance was reduced to about ?900 million, from a previous range of ?1.0??1.1 billion. The change partly stems from the cancellation of the Flexsat Americas project after a business-case review, a move the company says will deliver more than ?100 million in savings.