Eutelsat (ENXTPA:ETL) Stock Grapples With Losses As LEO Spending Builds

Eutelsat Communications came into these results as a bruised stock, down roughly 28% over three months and closing at €2.04 on the day of the release. Expectations were low. The headline from the earnings print is not the top line; it is the size and persistence of losses alongside a costly shift to low Earth orbit capacity that now defines the story.

Revenue for the year sat at about €1.236b, yet Eutelsat still reported a loss of €457m and an adjusted EBITDA margin of 51.2%. The market now has to decide whether that margin and the LEO growth justify the ongoing cash and balance sheet strain.

Is Eutelsat Communications trading at a genuine discount, or just wearing the label of a bargain while losses mount and dilution bites? Compare the current share price against the full valuation analysis for Eutelsat Communications

FY 2026 Earnings Summary

• Revenue (FY 2026 TTM vs. FY 2025 TTM): €1,235.9m vs. €1,243.7m (reported decline of 0.6%)
• Net Income, Excl. Extra Items (FY 2026 TTM vs. FY 2025 TTM): loss of €457.3m vs. loss of €1,081.9m (loss narrowed by 57.7%)
• Basic EPS (FY 2026 TTM vs. FY 2025 TTM): loss of €0.524 per share vs. loss of €2.278801 per share (per share loss narrowed by 77.0%)
• Adjusted EBITDA Margin (FY 2026 Full Year vs. FY 2025 Full Year): 51.2% vs. 54.4% (margin contracted by 3.2 percentage points)

Tired of scrolling through dense earnings tables and long paragraphs trying to piece together Eutelsat Communications' story? Get the full picture of its recent losses and revenue profile in a clean visual format with our company report for Eutelsat Communications.

Evaluating Whether LEO Execution Backs the Bullish Case

Bulls argue that Eutelsat Communications can turn LEO into a growth engine backed by sovereign and government demand. The latest results give that view concrete milestones. LEO revenue reached about €297m and now contributes roughly 25% of group revenue, with strong contributions across Fixed, Mobile and Government connectivity. That indicates the GEO to LEO mix shift is progressing beyond a plan on paper.

The bullish story also leans heavily on sovereign contracts and backlog quality. Here, Eutelsat has hit important markers. The French CENTAURE contract under the NEXUS framework brings firm revenue of €138m over the first 4 years, with potential to reach €350m over 8 years. Leadership in the EU IRIS² programme and a €3.4b backlog, where Connectivity now sits at 61%, support the view that government and enterprise customers are starting to commit meaningful volume to the LEO platform.

Compare whether this LEO driven revenue mix and backlog story that bulls see in Eutelsat Communications lines up with institutional expectations. Reveal how the street is positioning by checking the consensus price target analysis for Eutelsat Communications.

Eutelsat Bears Focus On Losses And Cash Demands

The core worry around Eutelsat Communications is that OneWeb integration and LEO expansion keep cash flow under strain while legacy Video erodes, so the balance sheet never really gets breathing room. This set of results does not dismiss that concern. Group revenue is roughly flat and Video fell 13.1% to €519m, so the drag from the older business is clearly visible. LEO revenue of about €297m and a €3.4b backlog help, but they are not yet large enough to offset a reported loss of €457m and a 3.2 percentage point squeeze in the adjusted EBITDA margin to 51.2%.

Bears also warned about a heavy capex cycle. Management confirmed around €4b of capex for FY26 to FY29 and guided to about €1.2b in FY27 alone. The recent €5b refinancing and equity raise reduce immediate funding risk, but they also underline how capital hungry this transition still is.

After a €457m loss, a €4b capex plan and recent dilution, review whether these pressures signal deeper structural issues. Scan the full risk analysis for Eutelsat Communications which shows 2 important warning signs.

Take Control Of Your Next Move

If Eutelsat Communications' mix of LEO growth, heavy capex and recent losses has your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and watch for an entry point that fits your plan. Once you are invested, use the Portfolio Command Center to cut through noise and focus on essential updates that matter for your holdings. For a longer term view, tap into shared insights and different angles from other investors through the Community. By spotting potential catalysts and risks early, you can make decisions faster and stay a step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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