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6d ago

Eutelsat Faces Revenue Pressure as U.S. DoD Contract Ends, LEO Demand Rises

The satellite operator reports a quarterly revenue dip but reaffirms guidance, bolstered by growing non-U.S. government interest in its OneWeb LEO network.

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Overview

  • Eutelsat lost a significant U.S. Department of Defense contract, contributing to government contract renewal rates falling below 50% for the quarter.
  • The company reported €300 million in quarterly revenue, a 1.9% year-on-year decline, but maintained its full-year revenue guidance.
  • Demand for OneWeb's low Earth orbit (LEO) services is increasing, particularly among non-U.S. governments seeking alternatives to U.S.-based Starlink.
  • Eutelsat ordered 100 new satellites from Airbus to replenish the OneWeb network by late 2026 and is actively seeking €4 billion in financing for IRIS² and other initiatives.
  • The company expects an annualized €16 million revenue impact from sanctions-related removal of Russian channels, aligning with EU regulatory compliance.