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Eutelsat Communications (FR:ETL)
:ETL

Eutelsat Communications (ETL) AI Stock Analysis

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FR:ETL

Eutelsat Communications

(OTC:ETL)

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Neutral 41 (OpenAI - 4o)
Rating:41Neutral
Price Target:
€2.00
▼(-45.95% Downside)
Eutelsat Communications is facing significant financial and technical challenges. The company's declining revenues, high leverage, and negative profitability are major concerns. Technical indicators suggest bearish momentum, with the stock trading below key moving averages and showing oversold conditions. The negative P/E ratio and lack of dividend yield further weaken the stock's valuation. These factors collectively result in a low overall stock score.
Positive Factors
Strong Gross Profit Margin
A strong gross profit margin indicates efficient cost management and pricing power, which can support profitability as revenue stabilizes.
Stable Long-term Contracts
Long-term contracts ensure a steady revenue stream, reducing volatility and providing financial predictability, aiding in strategic planning.
Industry Demand for Connectivity
Increasing demand for connectivity services supports long-term growth potential, as Eutelsat expands its market reach in underserved areas.
Negative Factors
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.
Declining Revenue
Declining revenue growth suggests challenges in maintaining market share and competitiveness, which may pressure future profitability.
Negative Profitability
Negative profitability indicates operational inefficiencies and challenges in covering costs, which could hinder long-term financial health.

Eutelsat Communications (ETL) vs. iShares MSCI France ETF (EWQ)

Eutelsat Communications Business Overview & Revenue Model

Company DescriptionEutelsat Communications (ETL) is a leading satellite operator based in France, providing satellite communication services to a diverse range of sectors including telecommunications, broadcasting, and broadband. With a fleet of satellites in geostationary and low Earth orbit, Eutelsat offers a variety of services such as direct-to-home broadcasting, data connectivity, and internet access, catering to both consumer and enterprise clients. The company is committed to enhancing connectivity and accessibility across different regions, particularly in remote and underserved areas.
How the Company Makes MoneyEutelsat generates revenue primarily through the leasing of satellite capacity to telecommunications operators, broadcasters, and internet service providers. Its core revenue streams include fixed and mobile broadband services, video broadcasting services, and data services. The company also benefits from long-term contracts with key clients, which provide stable income. Additionally, Eutelsat engages in partnerships with technology providers and telecom companies to expand its service offerings and improve customer reach. Factors contributing to its earnings include the growing demand for high-speed internet access, particularly in rural and underserved markets, and the increasing reliance on satellite technology for broadcasting and communication services.

Eutelsat Communications Earnings Call Summary

Earnings Call Date:Feb 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Feb 13, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view, with notable achievements in revenue growth in specific segments and strategic advancements in LEO infrastructure. However, significant challenges were highlighted, particularly in the GEO segment, with a substantial goodwill impairment and increased net loss. The outlook for GEO consumer broadband remains uncertain, adding to the cautious tone of the call.
Q2-2025 Updates
Positive Updates
Growth in Operating Verticals Revenue
Operating vertical revenues reached €600 million, showing an increase of 3.9% year-on-year. Fixed Connectivity and Government Services segments rose by 22% each.
SpaceRISE Consortium and Iris2 Contract
Eutelsat signed the agreement with the SpaceRISE consortium to design, build, and operate the Iris2 multi-orbit constellation, marking a significant step in its LEO build-out strategy.
Lower CapEx Expectations
Gross CapEx is now expected to be between €500 million and €600 million, down from the initially guided €700 million to €800 million, due to timing of LEO investments and increased vigilance on GEO expenditures.
Significant Contract Wins
New multiyear agreements signed with Q-KON and NIGCOMSAT to expand LEO satellite services across Sub-Saharan Africa and Nigeria.
Successful Partnership for Infrastructure
Eutelsat exercised the put option with the EQT Infrastructure fund for the sale of a majority stake in its passive ground infrastructure, expected to deliver net proceeds of around €500 million.
Negative Updates
Goodwill Impairment on GEO Assets
A goodwill impairment of €535 million was recorded for GEO assets due to lower expected future cash flows.
Decline in Video Revenue
Video segment revenues, representing 51% of the total, declined by 6.4% year-on-year, in line with broader secular market declines.
Increased Net Loss
Group share of net income was a loss of €873.2 million, significantly up from a loss of €191.3 million a year earlier, due to higher operating expenses and goodwill impairment.
Challenges with GEO Consumer Broadband
Difficult conditions for GEO consumer broadband in Europe, with a temporary stop of revenue recognition from a specific customer on the KONNECT VHTS satellite.
Rising Net Debt
Net debt increased to €2,695.8 million, with a net debt-to-adjusted EBITDA ratio rising to 3.92 from 3.79.
Company Guidance
During the Eutelsat Group's second quarter and first half 2024-2025 results call, several key financial metrics and strategic initiatives were highlighted. The company reported total revenues of €606 million, reflecting a 5.9% increase on a reported basis and 4.4% like-for-like. Operating vertical revenues rose by 3.9% to €600 million, while the adjusted EBITDA margin was stable at 55.2%. Despite a goodwill impairment of €535 million on GEO assets, Eutelsat confirmed its full-year revenue and EBITDA margin objectives. The company's net debt to adjusted EBITDA ratio rose to 3.92. Capital expenditures are projected to be lower than initially guided, expected between €500 million and €600 million. Strategically, Eutelsat advanced its LEO build-out with the SpaceRISE consortium's Iris2 constellation, planning to invest around €2 billion towards its completion. The Iris2 project is valued at €10.6 billion, with public funding covering 60% of the cost. Additionally, the company exercised a put option for the sale and leaseback of passive ground infrastructure, expected to generate €500 million in net proceeds in 2026.

Eutelsat Communications Financial Statement Overview

Summary
Eutelsat Communications faces significant financial challenges, with declining revenues, high leverage, and negative profitability. While the company maintains a strong gross profit margin, the overall financial health is weakened by substantial losses and cash flow issues. The high debt levels pose additional risks, requiring strategic adjustments to improve financial stability and performance.
Income Statement
45
Neutral
Eutelsat Communications has experienced declining revenue growth, with a significant drop of 23.3% in the latest year. The gross profit margin remains strong at 80.56%, but the net profit margin is deeply negative at -86.99%, indicating substantial losses. The EBIT margin is also negative, reflecting operational challenges. Despite a decent EBITDA margin of 48.22%, the overall profitability is concerning.
Balance Sheet
50
Neutral
The company has a high debt-to-equity ratio of 1.22, indicating significant leverage. Return on equity is negative at -41.71%, reflecting poor returns for shareholders. The equity ratio stands at 37.08%, suggesting moderate financial stability but potential risks due to high leverage.
Cash Flow
40
Negative
Free cash flow has drastically declined by 95.51%, and the free cash flow to net income ratio is negative, highlighting cash flow challenges. The operating cash flow to net income ratio is 0.33, indicating limited cash generation relative to net losses.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.24B1.24B1.21B1.13B1.15B1.23B
Gross Profit627.30M1.00B1.01B572.50M1.06B1.14B
EBITDA500.80M599.70M525.80M1.08B911.80M833.00M
Net Income-1.08B-1.08B-309.90M314.90M230.80M214.10M
Balance Sheet
Total Assets7.00B7.00B8.52B7.41B7.57B7.28B
Cash, Cash Equivalents and Short-Term Investments574.60M574.60M843.90M482.20M680.50M861.10M
Total Debt3.17B3.17B3.38B3.23B3.44B3.54B
Total Liabilities4.34B4.34B4.57B4.34B4.71B4.59B
Stockholders Equity2.59B2.59B3.85B2.98B2.78B2.61B
Cash Flow
Free Cash Flow-72.80M-5.60M42.40M438.60M545.40M625.60M
Operating Cash Flow315.90M383.10M505.60M639.60M722.60M809.00M
Investing Cash Flow-410.10M-410.10M90.40M-348.40M-583.00M-192.10M
Financing Cash Flow-113.20M-113.20M-242.20M-487.20M-335.00M-581.30M

Eutelsat Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.70
Price Trends
50DMA
2.53
Negative
100DMA
2.49
Negative
200DMA
2.75
Negative
Market Momentum
MACD
-0.15
Positive
RSI
30.38
Neutral
STOCH
36.60
Neutral
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 3.7 is above the 20-day moving average (MA) of 2.21, above the 50-day MA of 2.53, and above the 200-day MA of 2.75, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 30.38 is Neutral, neither overbought nor oversold. The STOCH value of 36.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ETL.

Eutelsat Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
52
Neutral
€75.29M-181.06-1.34%3.26%95.41%
52
Neutral
€49.20M-5.47-7.69%1.56%-910.94%
49
Neutral
€271.66M-19.86-37.49%26.59%32.48%
45
Neutral
€25.08M-23.9515.01%79.05%
41
Neutral
€2.23B-1.07-32.71%2.53%-192.58%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FR:ETL
Eutelsat Communications
1.89
-0.35
-15.52%
FR:ATEME
Ateme SA
6.50
0.90
16.07%
FR:EKI
Ekinops
1.82
-1.61
-46.94%
FR:ALNTG
Netgem SA
0.78
-0.13
-14.29%
FR:PARRO
Parrot SA
8.78
6.43
273.62%
FR:ALBPK
Broadpeak SA
2.00
1.01
102.02%

Eutelsat Communications Corporate Events

Delistings and Listing ChangesPrivate Placements and Financing
Eutelsat Publishes UK Prospectus for London Listing
Positive
Nov 25, 2025

Eutelsat has announced the publication of its UK prospectus following approval by the UK’s Financial Conduct Authority, marking a significant step in its capital raise initiative and its listing on the London Stock Exchange. This move is expected to enhance Eutelsat’s market presence and provide new opportunities for investment, further solidifying its position as a leader in the satellite communications industry.

Business Operations and StrategyPrivate Placements and Financing
Eutelsat Launches €670 Million Rights Issue to Bolster Strategic Growth
Positive
Nov 25, 2025

Eutelsat Communications has announced a €670 million rights issue as part of a €1.5 billion capital raise to support its strategic ambitions, including the deployment of LEO satellite activities and the IRIS2 constellation. This capital raise, alongside a refinancing plan, aims to finance a medium-term plan covering €4 billion in investments from 2026 to 2029, while reducing the company’s leverage ratio, thereby reinforcing its financial structure and market competitiveness.

Regulatory Filings and Compliance
Eutelsat Files Amendment to 2024-25 Registration Document
Positive
Nov 25, 2025

Eutelsat Communications has filed an amendment to its universal registration document for 2024-25 with the Autorité des Marchés Financiers. This filing underscores Eutelsat’s commitment to regulatory compliance and transparency, potentially enhancing its market positioning and stakeholder confidence.

Executive/Board ChangesStock BuybackFinancial DisclosuresShareholder Meetings
Eutelsat Communications Approves Key Resolutions at Annual General Meeting
Neutral
Nov 20, 2025

Eutelsat Communications held its Annual General Meeting in Paris, where all proposed resolutions were approved, including financial statements, regulated agreements, director renewals, and remuneration policies. The meeting also authorized the Board to acquire and potentially cancel company shares. Certain resolutions regarding capital reduction and share issuance were withdrawn to protect corporate interests and align with capital increase timelines.

Business Operations and StrategyPrivate Placements and Financing
Eutelsat Launches €828 Million Capital Increase to Boost Financial Strategy
Positive
Nov 18, 2025

Eutelsat Communications has announced a €828 million reserved capital increase as part of a comprehensive financing strategy, with significant investments from the French State, Bharti Space Limited, the UK Government, CMA CGM Participations, and Le Fonds Stratégique de Participations. This capital increase, along with a planned €672 million rights issue, aims to enhance financial flexibility, support investment in Low Earth Orbit capabilities, and accelerate deleveraging. The company anticipates a Net Debt / Adjusted EBITDA ratio of approximately 2.5x by the end of FY 2025-26, positioning it well for future financing needs. Eutelsat confirms its financial objectives for FY 2025-26 and beyond, with expectations of significant growth in LEO revenues and an improved EBITDA margin.

Financial DisclosuresRegulatory Filings and Compliance
Eutelsat Communications Releases 2024-25 Universal Registration Document
Positive
Oct 31, 2025

Eutelsat Communications has filed its universal registration document for the year 2024-25 with the Autorité des Marchés Financiers, making it available to the public. This document includes the annual financial report, statutory auditors’ reports, and information on fees paid to auditors. The filing reflects Eutelsat’s transparency and regulatory compliance, potentially impacting its market position by reinforcing investor confidence and stakeholder trust.

Shareholder Meetings
Eutelsat Prepares for Upcoming Shareholder Meeting with Document Release
Positive
Oct 31, 2025

Eutelsat Communications has announced the availability of preparatory documents for its Combined General Meeting of Shareholders scheduled for November 20, 2025. The meeting will be held in Paris and will be webcast live, offering shareholders the opportunity to access documents and information online or at the company’s registered office. This announcement underscores Eutelsat’s commitment to transparency and shareholder engagement, potentially impacting its industry positioning by reinforcing trust and accessibility for its stakeholders.

Financial DisclosuresPrivate Placements and Financing
Eutelsat Communications Reports Q1 2025-26 Revenue Growth Driven by LEO
Positive
Oct 21, 2025

Eutelsat Communications reported its first-quarter 2025-26 revenues, highlighting a 70.7% increase in LEO revenues, which drove overall connectivity growth despite a 1.2% decline in operating verticals revenues. The company confirmed its financial objectives, with a €1.5 billion capital increase approved by shareholders, and maintained a stable backlog of €3.5 billion, indicating a strong market position and future revenue potential.

Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
Eutelsat Approves Board Appointments and Capital Increase at General Meeting
Positive
Sep 30, 2025

Eutelsat’s General Shareholders’ Meeting on September 30, 2025, approved all resolutions, including key appointments to the Board of Directors and a significant capital increase. The capital increase involves issuing ordinary shares without preferential subscription rights for existing shareholders, benefiting entities such as the French State, Bharti Space Limited, and the UK Government. This strategic move is expected to strengthen Eutelsat’s financial position and enhance its market presence, potentially impacting stakeholders positively by expanding its operational capabilities.

Shareholder Meetings
Eutelsat Prepares for Key Shareholder Meeting in September 2025
Neutral
Sep 10, 2025

Eutelsat Communications has announced the availability of preparatory documents for its upcoming Ordinary and Extraordinary General Meeting of Shareholders scheduled for September 30, 2025. The meeting will be held in Paris and will be webcast live. Shareholders can access the agenda and draft resolutions on the company’s website. This meeting is crucial for stakeholders as it will address important resolutions that could impact the company’s strategic direction and operations.

Business Operations and Strategy
Eutelsat Chairman Acquires Shares, Signaling Confidence in Future Prospects
Positive
Sep 9, 2025

Eutelsat Communications announced a notification regarding transactions by Eric Labaye, the Chairman of the Board, who acquired shares of the company. This move signifies confidence in the company’s future prospects and may influence market perceptions positively, potentially impacting stakeholders and the company’s position in the satellite communications industry.

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.Date of analysis: Dec 13, 2025