Eutelsat Communications (FR:ETL)
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Eutelsat Communications
(OTC:ETL)
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Rating:50Neutral
Price Target:
€2.50
▼(-32.43% Downside)
Action:ReiteratedDate:03/26/26
The score is held back primarily by weak financial performance (sharp revenue decline, deep net losses, high leverage, and collapsing free cash flow). The latest earnings call improves the outlook via reiterated guidance, reduced CapEx guidance, and materially strengthened financing/liquidity, but technical indicators are only neutral and valuation support is limited by a negative P/E and no dividend data.
Positive Factors
LEO connectivity growth
LEO revenues rising ~60% YoY to €111m signals a durable structural shift into low-latency connectivity. Commercial traction in aviation, maritime and government plus rising connectivity backlog share supports long-term revenue diversification away from declining video and expands addressable markets.
Negative Factors
Video revenue secular decline
A structural decline in video (≈-12% YoY) removes a historically stable, long-term revenue base. Sanction-related losses and a maturing broadcast market force reliance on connectivity growth to replace recurring GEO video cash flows, increasing execution dependency on LEO commercialization.
Read all positive and negative factors
Positive Factors
Negative Factors
LEO connectivity growth
LEO revenues rising ~60% YoY to €111m signals a durable structural shift into low-latency connectivity. Commercial traction in aviation, maritime and government plus rising connectivity backlog share supports long-term revenue diversification away from declining video and expands addressable markets.
Read all positive factors
Eutelsat Communications (ETL) vs. iShares MSCI France ETF (EWQ)
Market Cap
€2.65B
Dividend YieldN/A
Average Volume (3M)2.38M
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth2.53%
EPS Growth-192.58%
CountryFR
Employees1,514
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.42
Shares Outstanding1,178,308,100
10 Day Avg. Volume2,658,091
30 Day Avg. Volume2,379,320
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.68
Price to Sales (P/S)1.42
P/FCF Ratio-314.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€2.50Price Target Upside-32.43% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)-0.33
Revenue Forecast (FY)€1.21B
Eutelsat Communications Business Overview & Revenue Model
Company Description
Eutelsat Communications S.A. engages in the operation of telecommunication satellites for the digital communications markets. It provides video services, such as broadcast DTH, distribution, HD and ultra HD channels, and occasional use services; c...
How the Company Makes Money
Eutelsat primarily makes money by selling access to satellite network resources and related services under multi-year contracts. A core revenue stream is leasing satellite capacity (transponders and bandwidth) on its geostationary (GEO) satellites...
Eutelsat Communications Earnings Call Summary
Earnings Call Date:Feb 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 24, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial turning point: significant financing achievements (EUR 1.5bn capital raise, ~EUR 1bn ECA financing), credit-rating upgrades, improved liquidity and lower net debt, strong LEO-driven connectivity growth and tangible commercial traction (aviation, maritime, government). Key risks remain—notably a notable decline in video revenues (sanctions and market maturity), margin compression from the LEO ramp mix, the halted ground-asset sale impacting year-end leverage, and the need to complete bond refinancing and IRIS2 financing clarity. On balance, the strategic milestones (financing, OneWeb operational continuity, commercial wins) substantially outweigh the current headwinds.Positive Updates
Strong LEO revenue growth
LEO revenues grew nearly 60% year-on-year to ~EUR 111m in H1, driving connectivity momentum and contributing to overall connectivity growth across fixed, government and mobility verticals.
Negative Updates
Video revenue decline and sanction impact
Video revenues down ~12% YoY (H1 reported ~EUR 260-266m), driven by sanction-related loss of Russian revenues (c. EUR 16m impact for full year 2025-26) and an underlying mature market showing mid- to high-single-digit decline.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong LEO revenue growth
LEO revenues grew nearly 60% year-on-year to ~EUR 111m in H1, driving connectivity momentum and contributing to overall connectivity growth across fixed, government and mobility verticals.
Read all positive updates
Company Guidance
Guidance reiterated that full-year objectives are confirmed: combined revenues of the four operating verticals are expected to be in line with FY24‑25, LEO revenues are targeted to grow ~50% year‑on‑year, and adjusted EBITDA margin is expected to be slightly below last year’s full‑year level; gross CapEx for FY25‑26 is now guided to around €900m (versus prior €1.0–1.1bn) after H1 gross CapEx of €292m, with the cancellation of Flexsat Americas saving >€100m of future CapEx. Balance‑sheet and financing metrics reflect the completed €1.5bn capital raise, almost €1bn of Export Credit Agency financing secured, cash + undrawn lines of ~€2.1bn and net debt of €1.3bn at 31 Dec (net debt/adjusted EBITDA 2.0x at 31 Dec, expected to be ~2.7x at year‑end versus 2.5x if the ground‑segment sale had completed); average cost of debt after hedging ~4.2% and weighted average debt maturity ~2.3 years. Management also highlighted operational continuity via procurement of 440 OneWeb LEO satellites, that the halted passive ground‑segment disposal improves EBITDA margin by ~5 percentage points (avoiding ~€75–80m p.a. lease payments), and medium‑term targets of €1.5–1.7bn revenue and ~65% EBITDA margin by FY28‑29 with long‑term B2B connectivity growth expected in double digits.Eutelsat Communications Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
50
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.23B | 1.24B | 1.21B | 1.13B | 1.15B | 1.23B |
| Gross Profit | 258.80M | 1.00B | 1.01B | 572.50M | 1.06B | 1.14B |
| EBITDA | 553.30M | 599.70M | 525.80M | 1.08B | 911.80M | 833.00M |
| Net Income | -445.10M | -1.08B | -309.90M | 314.90M | 230.80M | 214.10M |
Balance Sheet | ||||||
| Total Assets | 7.80B | 7.00B | 8.52B | 7.41B | 7.57B | 7.28B |
| Cash, Cash Equivalents and Short-Term Investments | 1.57B | 574.60M | 843.90M | 482.20M | 680.50M | 861.10M |
| Total Debt | 3.07B | 3.17B | 3.38B | 3.23B | 3.44B | 3.54B |
| Total Liabilities | 3.92B | 4.34B | 4.57B | 4.34B | 4.71B | 4.59B |
| Stockholders Equity | 3.82B | 2.59B | 3.85B | 2.98B | 2.78B | 2.61B |
Cash Flow | ||||||
| Free Cash Flow | -110.80M | -5.60M | 42.40M | 438.60M | 545.40M | 625.60M |
| Operating Cash Flow | 393.80M | 383.10M | 505.60M | 639.60M | 722.60M | 809.00M |
| Investing Cash Flow | -512.00M | -410.10M | 90.40M | -348.40M | -583.00M | -192.10M |
| Financing Cash Flow | 999.30M | -113.20M | -242.20M | -487.20M | -335.00M | -581.30M |
Eutelsat Communications Technical Analysis
Positive
3.70
Price Trends
2.16
Positive
2.12
Positive
2.36
Negative
Market Momentum
0.04
Negative
56.16
Neutral
64.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:ETL, the sentiment is Positive. The current price of 3.7 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 2.16, and above the 200-day MA of 2.36, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 64.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:ETL.
Eutelsat Communications Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | €24.35M | 19.77 | 6.35% | 6.46% | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | €52.49M | -7.25 | -7.69% | ― | 1.56% | -910.94% | |
52 Neutral | €106.09M | -4.02 | -1.34% | ― | 3.26% | 95.41% | |
50 Neutral | €2.65B | -1.03 | -13.89% | ― | 2.53% | -192.58% | |
50 Neutral | €26.59M | -3.86 | ― | ― | 15.01% | 79.05% |
* Technology Sector Average
FR:ETL
Eutelsat Communications
2.25
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-21.05%
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FR:EKI
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FR:ALNTG
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FR:ALBPK
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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.