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Eutelsat Communications
(ETL)
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Rating:47Neutral
Price Target:
€1.50
▼(-18.03% Downside)
Action:Reiterated
Date:09/08/26
The score is held back primarily by weak financial performance (multi-year net losses and recently negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). This is partially offset by a more constructive earnings-call outlook—strong LEO growth, strengthened liquidity, and reiterated mid-term targets—though heavy upcoming CapEx and only modest near-term guidance cap the upside in the score.
Positive Factors
LEO Growth
Rapid LEO growth is shifting Eutelsat toward a broader connectivity platform with expanding commercial relevance. Rising contribution from the constellation can diversify the business beyond legacy video, support future revenue growth, and strengthen the company’s position in enterprise, government, and mobility markets.
Negative Factors
Persistent Net Losses
Persistent net losses and negative returns on equity show that strong EBITDA generation has not translated into bottom-line profitability. This weakens financial flexibility, makes the business more dependent on financing and asset economics, and raises uncertainty about the durability of shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
LEO Growth
Rapid LEO growth is shifting Eutelsat toward a broader connectivity platform with expanding commercial relevance. Rising contribution from the constellation can diversify the business beyond legacy video, support future revenue growth, and strengthen the company’s position in enterprise, government, and mobility markets.
Read all positive factors
Eutelsat Communications (ETL) vs. iShares MSCI France ETF (EWQ)
Market Cap
€1.63B
Dividend Yield11.56%
Average Volume (3M)2.00M
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-0.63%
EPS Growth70.49%
CountryFR
Employees1,645
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-0.61
Shares Outstanding1,178,308,100
10 Day Avg. Volume1,823,817
30 Day Avg. Volume2,000,419
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.78
Price to Sales (P/S)2.30
P/FCF Ratio-87.38
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2.40Price Target Upside31.15% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.22
Revenue Forecast (FY)€1.26B
Eutelsat Communications Business Overview & Revenue Model
Company Description
Eutelsat Communications S.A. operates telecommunication satellites, providing essential services to global digital communication markets. Its comprehensive portfolio includes video services such as direct-to-home (DTH) broadcasting, content distri...
How the Company Makes Money
Eutelsat makes money primarily by selling satellite capacity and connectivity services under commercial contracts to customers that need coverage, bandwidth, and managed network performance.
Key revenue streams typically include:
- Video (broadca...
Eutelsat Communications Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 12, 2027
Earnings Call Sentiment Positive
The call presents a transformational positive outlook driven by very strong LEO commercial traction (~+70% LEO growth), strategic wins (CENTaURE, IRIS2 leadership), and a materially strengthened balance sheet following a €5 billion refinancing and €1.5 billion capital increase. Near‑term challenges include continued Video/legacy declines, margin compression from mix shift toward lower‑margin LEO services, and a heavy CapEx profile in the coming years (~€4 billion cumulative FY26–29). On balance, the company has addressed financing risk, is delivering accelerating LEO revenues and strategic contracts that underpin mid‑term targets, but will face execution and profitability pressure while investments ramp.Positive Updates
Rapid LEO Revenue Growth
LEO revenues increased nearly 70% year-on-year to ~€297–300 million, now representing ~25% of group total revenues and >40% of Connectivity revenues; LEO growth powered 24.7% like-for-like Q4 Connectivity growth and 30% QoQ in Q4.
Negative Updates
Video/Legacy Revenue Decline
Video revenues declined -13.1% year‑on‑year to €519 million and Q4 Video revenues down -14.4% YoY (-2.7% QoQ), driven by market trends, sanctions on Russian channels and termination of AT1/AT2 capacity contracts.
Read all updates
Q4-2026 Updates
Positive
Negative
Rapid LEO Revenue Growth
LEO revenues increased nearly 70% year-on-year to ~€297–300 million, now representing ~25% of group total revenues and >40% of Connectivity revenues; LEO growth powered 24.7% like-for-like Q4 Connectivity growth and 30% QoQ in Q4.
Read all positive updates
Company Guidance
Management guided that LEO will remain the growth engine, with LEO revenues expected to rise by over 30% in FY27 (after growing ~70% to EUR 297m and representing 25% of group revenues in FY25‑26), supporting slight growth in total revenues for the four operating verticals while adjusted EBITDA is expected to be broadly flat versus FY25‑26 (FY25‑26 adj. EBITDA EUR632m; margin 51.2%). CapEx will ramp materially to ~EUR1.2bn in FY27 (FY25‑26 CapEx ~EUR594m), within a confirmed medium‑term envelope of ~EUR4bn of investments over FY26–FY29 (including ~EUR2bn for OneWeb replenishment). The group reiterated FY29 revenue guidance of EUR1.5–1.7bn and an operating EBITDA margin above 60% by June‑29. Financing metrics at 30 June‑26 included net debt EUR1.46bn (net debt/EBITDA 2.32x), liquidity ~EUR2.3bn plus ~EUR690m undrawn ECA, average cost of debt after hedging 4.37% and average debt maturity 4.2 years, following a EUR5bn refinancing package and a EUR1.5bn capital increase. Management also flagged a EUR350m CENTAURE call‑off (EUR138m firm in the first four years) and a $504m FCC Upper C‑Band incentive (~EUR443m) expected in 2031, backlog of EUR3.4bn (2.7x FY25‑26 revenues) and Connectivity representing 61% of backlog.Eutelsat Communications Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
44
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.24B | 1.24B | 1.21B | 1.13B | 1.15B |
| Gross Profit | -67.00M | 1.00B | 1.01B | 572.50M | 1.06B |
| EBITDA | 726.80M | 599.70M | 613.70M | 1.08B | 911.80M |
| Net Income | -457.30M | -1.08B | -309.90M | 314.90M | 230.80M |
Balance Sheet | |||||
| Total Assets | 8.09B | 7.00B | 8.52B | 7.41B | 7.57B |
| Cash, Cash Equivalents and Short-Term Investments | 1.78B | 574.60M | 843.90M | 482.20M | 680.50M |
| Total Debt | 3.17B | 3.17B | 3.38B | 3.23B | 3.44B |
| Total Liabilities | 4.41B | 4.34B | 4.57B | 4.34B | 4.71B |
| Stockholders Equity | 3.62B | 2.59B | 3.85B | 2.98B | 2.78B |
Cash Flow | |||||
| Free Cash Flow | -32.50M | -5.60M | 42.40M | 438.60M | 545.40M |
| Operating Cash Flow | 508.90M | 383.10M | 505.60M | 639.60M | 722.60M |
| Investing Cash Flow | -532.50M | -410.10M | 90.40M | -348.40M | -583.00M |
| Financing Cash Flow | 1.27B | -113.20M | -242.20M | -487.20M | -335.00M |
Eutelsat Communications Technical Analysis
Negative
1.83
Price Trends
1.84
Negative
2.25
Negative
2.30
Negative
Market Momentum
-0.12
Positive
18.92
Positive
0.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ETL, the sentiment is Negative. The current price of 1.83 is above the 20-day moving average (MA) of 1.65, below the 50-day MA of 1.84, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 18.92 is Positive, neither overbought nor oversold. The STOCH value of 0.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ETL.
Eutelsat Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | €33.75M | 17.06 | 8.67% | 4.90% | 1.84% | 36.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | €132.53M | 18.23 | 19.18% | ― | 9.84% | ― | |
50 Neutral | €22.45M | -7.42 | ― | ― | -9.14% | -190.06% | |
47 Neutral | €1.63B | -2.26 | -12.30% | 11.56% | -0.63% | 70.49% | |
41 Neutral | €61.63M | -6.51 | -9.09% | ― | -9.62% | -6.43% |
* Communication Services Sector Average
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Eutelsat Communications Corporate Events
Eutelsat Starts Renewal of OneWeb LEO Constellation with First 32 Satellites
Oct 2, 2026
Eutelsat Communications has reached a key milestone in its OneWeb constellation renewal, with Airbus Defence and Space completing the first batch of 32 new low Earth orbit satellites at its Toulouse facility. The satellites are being shipped for a...
Eutelsat Secures $504 Million in FCC C-Band Transition Incentives
Jul 27, 2026
Eutelsat will receive $504 million in incentive payments and full cost reimbursement under a new U.S. Federal Communications Commission order governing the transition of Upper C-band spectrum. The framework reallocates 160 MHz of spectrum to advan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.