Eutelsat expects modest revenue growth in the coming financial year as its OneWeb satellite business continues to expand, but weaker-than-expected margins sent the company’s shares lower on Friday.
Eutelsat said on Friday that revenue is expected to increase slightly in 2026/27, supported by strong growth in its Low-Earth-Orbit (LEO) satellite business, OneWeb.
OneWeb revenue rose 69.5% to €297 million in the latest financial year, accounting for about a quarter of Eutelsat’s total revenue. The company expects LEO revenue to continue growing by more than 30% in the year ahead.
However, investors focused on profitability. Eutelsat reported adjusted core earnings of €632.4 million, with an adjusted EBITDA margin of 51.2%, below analysts’ expectations of 52.4%. The company’s shares fell as much as 8% following the results.
Eutelsat said the rapid expansion of OneWeb is currently putting pressure on margins because its LEO business generates lower margins than its traditional geostationary satellite operations.
The company is positioning OneWeb as a European alternative to SpaceX’s Starlink, with growing demand from governments and enterprise customers for satellite connectivity.
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