LEO Momentum Builds As Eutelsat Recalibrates GEO spending
Results mixed. Q2 revenue was €298M, down 3% y/y, driven by a 16% Video decline and 8% Government softness. LEO-led growth (+€16M) more than offset GEO weakness (-€4M) within connectivity but fell short of Video erosion on Russian sanctions (€24M impact). FY26 revenue guidance was reiterated (flat at €1.2B).
LEO is growth engine. Q2 revenues jumped 40% y/y to €56M, now accounting for 20% of group revenue. We expect fullyear guidance of €280M (+50% y/y) to be met, implying a meaningful H2 acceleration (~54%) driven by aviation and defense ramp.
Mobility standout. Revenues grew 26% y/y to €42M driven by IFC installations. Aircraft backlog now stands at 900, with 600 planes live with OneWeb connectivity. Revenue conversion now depends on deployment speed through FY26-27. We model ~15% CAGR and FY27 revenue of €211M.