Eutelsat projects a return to revenue growth in fiscal 2027 as accelerating demand for low-Earth orbit (LEO) satellite connectivity through its OneWeb constellation offsets ongoing weakness in its traditional video broadcasting business.

The French satellite operator said it expects to deliver slight revenue growth next year after reporting stable performance in fiscal 2026. Management also expects its adjusted core earnings margin to remain broadly in line with fiscal 2025/26 levels despite continued investment in expanding its next-generation satellite services.

OneWeb Continues to Drive Growth

Eutelsat’s growth outlook is being fueled by its OneWeb satellite constellation, which has become a key strategic asset as demand for global broadband connectivity continues to expand.

The company expects revenue from its LEO business to grow by more than 30% in fiscal 2027. OneWeb currently represents the only operational global LEO satellite network outside Elon Musk’s Starlink, positioning Eutelsat as an important alternative provider for governments and enterprise customers seeking diversified satellite infrastructure.

LEO services accounted for approximately 25% of total group revenue during fiscal 2025/26, reflecting the increasing importance of broadband connectivity within the company’s business mix.

Legacy Video Business Remains Under Pressure

While the OneWeb business continues to expand, Eutelsat’s traditional geostationary satellite operations remain challenged by declining demand for video broadcasting services.

The ongoing shift toward internet-based streaming platforms continues to pressure the company’s legacy video revenues, a trend that management expects to persist over the coming years.

Growth in broadband connectivity and enterprise services is expected to compensate for much of this decline, supporting the company’s overall revenue outlook.

Annual Results Beat Expectations

For the fiscal year ended June 2026, Eutelsat reported €1.24 billion in revenue, representing a 3% increase on a like-for-like basis and exceeding analyst expectations of approximately €1.20 billion.

Adjusted core earnings (EBITDA) declined 3.1% to €632.4 million, primarily reflecting higher operating expenses associated with expanding its satellite connectivity business.

The company also reported a significantly smaller net loss compared with the previous year, largely due to substantially lower impairment charges. During the prior fiscal year, Eutelsat recorded approximately €720 million in asset write-downs, weighing heavily on reported earnings.

Europe Seeks Alternatives to Starlink

Eutelsat’s strategic importance has increased as European governments and institutions seek greater independence in satellite communications infrastructure.

With OneWeb operating as the only global LEO network outside Starlink, Eutelsat is well positioned to benefit from public and private sector initiatives aimed at reducing reliance on U.S.-based satellite providers while strengthening Europe’s digital and communications capabilities.

Continued investment in secure broadband, government connectivity, and enterprise services could provide additional long-term growth opportunities for the company.

Closing Insights

Eutelsat’s outlook highlights the ongoing transformation of the satellite communications industry as broadband connectivity increasingly replaces traditional video broadcasting as the sector’s primary growth engine. While legacy television services continue to face structural headwinds, the rapid expansion of OneWeb’s LEO network positions Eutelsat to capitalize on rising global demand for satellite internet and Europe’s growing focus on sovereign communications infrastructure.