Eutelsat Reports €1.1 Billion Loss but Sees Growth in LEO Services

French satellite operator Eutelsat has reported a net loss of €1.1 billion for the fiscal year ending June 30, 2025, primarily due to impairments in its geostationary satellite assets. Despite this, the company achieved revenues of €1.24 billion, surpassing analyst expectations of €1.21 billion. This modest growth of 0.8% compared to the previous fiscal year was largely driven by an 84.1% increase in revenues from its low Earth orbit (LEO) satellite services, which totaled €187 million and now account for approximately 15% of the company's total revenue.

The surge in LEO revenue is attributed to heightened demand from government and corporate clients. Notably, Eutelsat's services have been utilized in Ukraine, with funding provided by the German government. Additionally, there has been growing demand from non-U.S. governments, such as Taiwan. Eutelsat anticipates a 50% growth in LEO revenues in the upcoming year, aiming to offset declines in its traditional video business, which has been impacted by new Russian sanctions.

In response to the evolving satellite communications landscape, Eutelsat is undergoing a strategic shift from its legacy video services to areas like in-flight and maritime connectivity. The company has announced a €1.5 billion capital increase, led by the French and British governments, to support this transition. This capital infusion is intended to reinforce Eutelsat's financial structure and fund its long-term strategic vision, positioning the company as a key European alternative to U.S. satellite providers.

Eutelsat has secured significant government contracts that underscore its strategic importance. In June 2025, the company signed a €1 billion, 10-year framework agreement with France's Armed Forces Ministry under the NEXUS program, aimed at enhancing the French military's space communications capabilities. Additionally, Eutelsat has partnered with the UK's Foreign, Commonwealth & Development Office to provide high-speed, low-latency connectivity for British embassies, high commissions, and consulates worldwide.

Eutelsat's strategic initiatives place it in direct competition with other satellite internet providers, notably SpaceX's Starlink and Amazon's Project Kuiper. However, Eutelsat differentiates itself by focusing on business-to-business (B2B) and government-to-government (B2G) markets, rather than the consumer market targeted by its competitors. This approach leverages Eutelsat's unique position as the only non-U.S. global satellite constellation provider from the European Union, benefiting from geopolitical shifts and increasing desires for autonomy from U.S. technology dominance.

Eutelsat's expansion into LEO satellite services and its strategic partnerships have significant social and economic implications. By providing enhanced connectivity, especially in conflict zones like Ukraine, Eutelsat plays a crucial role in supporting communication infrastructure for both civilian and military applications. Economically, the company's growth contributes to the European satellite industry's competitiveness, offering an alternative to U.S.-based providers and promoting technological sovereignty within the region.

Jean-François Fallacher, CEO of Eutelsat, stated, "I am excited to take the helm of Eutelsat as it enters a new chapter, centred on the deployment of LEO, a revolution for the Satellite industry." Fallacher also emphasized Eutelsat’s unique position as the only non-U.S. global satellite constellation provider from the EU, benefiting from geopolitical shifts and increasing desires for autonomy from U.S. technology dominance.

Eutelsat's strategic pivot to LEO satellites, bolstered by substantial government support and a focus on B2B and B2G markets, positions the company as a formidable player in the evolving satellite communications industry. As it continues to navigate financial challenges and technological transformations, Eutelsat's initiatives may significantly influence Europe's role in global connectivity and technological sovereignty.