Eutelsat Communications SA (EPA:ETL) saw its shares trade down roughly 5% to €2.04 by 09:20 GMT, underperforming the broader French market, after the satellite operator issued FY2026‑27 guidance that was softer than analyst expectations. The company projected an adjusted EBITDA margin of 51.2% for fiscal 2026‑27, essentially flat with the FY2025‑26 level but below the consensus outlook of about 54%.
For the fourth quarter, operating vertical revenue exceeded consensus by approximately 10%, and full‑year adjusted EBITDA came in at €632 million, marginally ahead of expectations. However, the firm signalled a substantial increase in capital spending, forecasting gross capital expenditure of around €1.2 billion for FY27, well above the market consensus of €825 million, to accelerate investment in renewing its OneWeb constellation.
For the year ended 30 June, total revenue slipped 0.6% to €1.24 billion, while the group’s net loss narrowed to €457.3 million from €1.08 billion a year earlier. Adjusted EBITDA declined 6.5% to €632.4 million, with the EBITDA margin falling to 51.2% from 54.4% in the prior year. The low‑Earth‑orbit (LEO) segment remained the primary growth driver, delivering revenue of €297 million—a near‑70% increase year‑on‑year—and helped offset continued weakness in legacy video‑related GEO operations. Connectivity revenue posted double‑digit growth across government, fixed and mobility services.
Looking ahead to FY27, Eutelsat expects modest growth in operating vertical revenue, driven by LEO revenue growth of more than 30%, while ongoing declines in GEO operations are anticipated to weigh on overall profitability. The projected €1.2 billion capex underscores the company’s focus on expanding and modernising its satellite fleet, particularly the OneWeb constellation.