Eutelsat Group (ETL) H1 2025 earnings summary

Executive summary

• H1 2024-25 revenues reached €606.2m, up 5.9% year-over-year, with operating verticals up 3.9% like-for-like, driven by strong connectivity growth offsetting video decline.

• Adjusted EBITDA margin was stable at 55.2% year-over-year; net loss widened to €873.2m due to €535m goodwill impairment on GEO assets and €117m satellite impairment.

• Strategic progress includes EU approval for the €10.6bn IRIS² multi-orbit constellation, with Eutelsat to invest ~€2bn and targeting €6.5bn in concession revenues.

• Exercised put option for sale-and-lease-back of ground infrastructure, expected to generate €500m net proceeds in H1 2026.

• FY 2024-25 objectives confirmed; capex guidance reduced to €500-600m, reflecting LEO investment timing and cautious GEO spending.

Financial highlights

• Total revenues for H1 2024-25 at €606.2m (+5.9% reported, +4.4% like-for-like); operating verticals at €600m (+5.0% reported, +3.9% like-for-like).

• Adjusted EBITDA at €334.9m (-8.4% reported, +4.9% like-for-like); margin at 55.2%.

• Net loss of €873.2m, mainly due to €535m goodwill impairment and €117m satellite impairments.

• Net debt at €2,695.8m; net debt/EBITDA ratio improved to 3.92x from 4.13x.

• Backlog at €3.7bn, with connectivity now 56% of total.

Outlook and guidance

• FY 2024-25 revenue and adjusted EBITDA margin objectives reaffirmed; operating verticals revenues expected flat year-over-year, margin slightly below FY 2023-24.

• Capex guidance for FY 2024-25 reduced to €500-600m (from €700-800m).

• Medium-term net debt/EBITDA target remains around 3x.

• IRIS² expected to generate €6.5bn in revenues over 12 years, with minimum IRR of 10-12%.

• LEO constellation extension to require €2-2.2bn investment through 2028-2029.