French MoD Contract and Mobility Keep FY26 on Track
 
Guidance held. Q3 revenue declined 2.3% y/y to €293M, reflecting muted Government and Fixed Connectivity growth. Despite this, Eutelsat maintained its FY26 revenue guidance of ~€1.2B, supported by expected revenue recognition from the French MoD’s €1B contract this year.
Video fell 15.6% y/y to €128M, hit by Russian channel sanctions and Express AT1/AT2 contract terminations. The new sanctions created a €16M annual headwind, while AT1/AT2 has a single-digit million revenue impact with no material AEBITDA loss.  
Govt step-up. Government and Fixed Connectivity were broadly flat in Q3, up 1.8% and 1.0% y/y to €50.4M and €60.3M, respectively on GEO weakness and currency impacts. Fixed Connectivity’s 13.5% q/q decline was due to the absence of a €7M GEO one-off from Q2. Government segment’s key catalyst remains the €1B, 10-year MoD framework, with revenue recognition to begin in Q4