European satellite operator Eutelsat reported strong growth in its Low Earth Orbit (LEO) business segment during the 2026-2027 fiscal year, according to its 2025-2026 full year fiscal report issued Friday. The operator’s profitability, however, came in below expectations. Eutelsat’s core earnings were €632.4 million for the year with a 51.2% profit margin. Analysts were expecting a 52.4% profit margin based on the operator’s earlier forecasts.
Eutelsat boasted a 69.5% increase in its LEO revenue from its OneWeb constellation, which now makes connectivity services the source of more than 60% of Eutelsat’s total business revenue. LEO services alone account for more than 40% of Eutelsat’s connectivity revenues and 25% of the company’s overall topline. The operator expects strong LEO growth next year, as well, with a forecast exceeding 30%. This success was offset by a double-digit, 13.1% decrease (on a like-for-like basis) in Eutelsat’s second-largest segment – video and GEO revenues. Overall, the company ended up with a 3% overall increase in its full-year revenue (also on a like-for-like basis) to €1.24 billion ($1.43 billion).
Highlighting the operator’s progress in transforming into a LEO-centric business, Eutelsat CEO Jean-Francois Fallacher called 2025/2026 a “landmark” fiscal year for the company, which included the successful completion of a €5 billion refinancing package to support future investments.
On an investor call following the results, Fallacher suggested that Eutelsat may be unfairly undervalued compared to SpaceX, considering the size of Eutelsat’s competitive LEO assets, the valuation assigned to SpaceX based on its IPO filing earlier this year, and SpaceX’s dependence on the U.S. government. “We look at the valuation of [SpaceX’s LEO constellation] Starlink and we believe we are undervalued as a company,” he said.
Eutelsat secured several new contracts in the 2025-2026 period, including its first call-off contract under the French Armed Forces’ NEXUS framework agreement.
On Friday, the operator also announced the successful completion of work towards Europe’s sovereign multi-orbit connectivity infrastructure under the IRIS2 constellation program’s First Rendez-Vous. The program involves the design, deployment and operation of the IRIS² LEO constellation, comprising 264 dual Mil-Ka/Ku band as well as the 66 Mil-Ka band satellites. The program, which includes suppliers Airbus Defense and Space, Thales Alenia Space and Aerospacelab, provides support for Eutelsat’s own future LEO infrastructure.
“Reaching this milestone is a defining moment for Eutelsat and for Europe’s space ambitions,” We are now moving from planning to execution, with a clear focus on delivering a world-class sovereign, secure and resilient connectivity infrastructure. The additional public and private investment agreed today strengthens the program with greater capacity, resilience and flexibility to meet Europe’s future connectivity and security needs,” Fallacher said.
