France-backed Eutelsat beats revenue estimates as Starlink rivalry intensifies

Summary

Eutelsat reported first-half revenue of €592 million, exceeding analyst expectations as growth in its OneWeb low Earth orbit satellite business accelerated. Backed by a €1.5 billion state-led recapitalisation, the French satellite operator is strengthening its balance sheet while positioning itself as a key European competitor to Starlink.

Paris, Feb 13 — French satellite operator Eutelsat posted stronger-than-expected first-half revenue, supported by growth in its low Earth orbit (LEO) broadband operations and state-backed financial restructuring.

The Paris-based group reported revenue of €592 million for the six months ended December, ahead of analyst expectations of approximately €581 million.

The results come as Eutelsat accelerates its strategic pivot from traditional video broadcasting toward broadband connectivity services.

State backing strengthens balance sheet

Eutelsat underwent a significant recapitalisation in 2025, led by the French state, which is now its largest shareholder.

The €1.5 billion capital injection aimed to reinforce the company’s balance sheet amid declining broadcast revenues and higher financing costs. Following the restructuring, the company said it significantly reduced net debt and improved liquidity flexibility.

France has positioned Eutelsat as a central pillar in Europe’s efforts to maintain sovereign satellite communications capabilities.

OneWeb drives broadband expansion

Growth in the company’s LEO division — primarily driven by OneWeb, acquired through Eutelsat’s 2023 merger — was a key contributor to the revenue beat.

LEO revenue increased by nearly 60% year-on-year and now represents roughly one-fifth of total group revenue.

LEO satellites orbit closer to Earth than traditional geostationary systems, offering lower latency and improved broadband performance. These systems are increasingly deployed for government, defence, enterprise and remote connectivity applications.

Capital investment remains substantial

Eutelsat continues to face high capital expenditure requirements as it modernises and expands its LEO fleet.

The company has secured a €1 billion state-backed loan facility to support procurement of new satellites from Airbus. It also confirmed adjustments to its satellite order pipeline, which lowered projected full-year capital expenditure to approximately €900 million, compared with previous guidance of up to €1.1 billion.

Eutelsat additionally confirmed plans to refinance outstanding bonds following credit rating upgrades linked to last year’s recapitalisation.

Strategic competition in space-based broadband

The results highlight intensifying competition in the satellite broadband market.

Starlink, operated by Elon Musk’s SpaceX, has expanded rapidly across aviation, maritime, defence and consumer broadband sectors. European policymakers have emphasised the importance of maintaining regional alternatives in critical communications infrastructure.

Eutelsat, through OneWeb, operates one of the few large-scale LEO constellations serving commercial and institutional clients globally.

While profitability remains pressured by investment demands, growth in broadband and secure connectivity services indicates progress in the company’s strategic transition.

Why this matters

Satellite connectivity is becoming strategically important as governments and enterprises seek secure, resilient communications infrastructure.

Europe’s push to strengthen domestic satellite capabilities reflects broader concerns about technological sovereignty and reliance on foreign providers.

Eutelsat’s improving revenue performance suggests its shift toward LEO broadband may be gaining traction — but sustained investment and competitive pressure from Starlink mean execution will be critical.

FAQs

Q1: How did Eutelsat perform financially?

The company reported €592 million in first-half revenue, exceeding analyst expectations.

Q2: What is driving growth?

Strong expansion in its OneWeb low Earth orbit satellite business, which now accounts for about 20% of group revenue.

Q3: Why is the French government involved?

France led a €1.5 billion recapitalisation to strengthen Eutelsat’s balance sheet and support Europe’s satellite infrastructure ambitions.

Q4: What investments are planned?

Eutelsat has secured a €1 billion state-backed loan facility to fund new satellite procurement from Airbus.

Q5: Why was capital expenditure revised?

Adjustments to satellite procurement plans reduced expected full-year capex to about €900 million.

Q6: What is the broader significance?

The results underscore intensifying competition in global satellite broadband and Europe’s effort to maintain strategic autonomy in space-based communications.