Eutelsat (ENXTPA:ETL) FY Results Leave Losses And Valuation Questions

Eutelsat Communications closed Friday at €1.77, roughly flat over the past month but down about 12% across three months, as investors tried to make sense of fresh full year 2026 numbers. The headline is blunt. Revenue of €1,235.9m sat alongside a group share net loss of €457m, keeping the satellite operator firmly in loss making territory.

Short term traders are reacting to red ink. Long term holders are focusing on a different tension. A discounted cash flow view suggests fair value around €3.06, yet the stock trades at a premium P/S multiple versus French media peers. That disconnect, rather than the latest earnings per share print, is the key factor to watch.

Like the infrastructure footprint at Eutelsat Communications but uneasy about fresh losses and a premium P/S tag while the market waits for proof of profitability? Consider screening for operators that pair asset intensity with cleaner balance sheets and positive earnings using our list of solid balance sheet and fundamentals stocks (204 results)

FY 2026 Earnings Summary

• Revenue (FY 2026 vs FY 2025 TTM): €1,235.9m vs. €1,243.7m (reported top line broadly stable, with a slight decline of about 0.6%)
• Net Income/Loss (FY 2026 vs FY 2025 TTM): loss of €457.3m vs. loss of €1,081.9m (reported loss narrowed by about 58%)
• Basic EPS (FY 2026 vs FY 2025 TTM): loss of €0.524 per share vs. loss of €2.278801 per share (per share loss reduced by roughly 77%)
• Adjusted EBITDA Margin (FY 2026): Adjusted EBITDA of €632m on revenue of €1,235.9m (margin 51.2%, down about 3.2 percentage points like for like)

Management says IRIS2 could anchor Eutelsat’s roadmap out to 2040. Ask Charlie what makes Eutelsat’s IRIS2 role a real catalyst.

Eutelsat Bull Case: Execution Milestones Start To Show

Supporters argue Eutelsat Communications can turn LEO momentum, heavy investment and new service lines into a stronger, more durable business model.

"The main thing that has to go right is that Eutelsat executes on its heavy €4b CapEx plan for FY26 to FY29 for OneWeb renewal and IRIS², while maintaining EBITDA margins and balance sheet strength after the €5b refinancing."

The latest numbers show some of that script on track. LEO revenue climbed about 70% to €297m and now represents roughly a quarter of sales. Adjusted EBITDA margin held at 51.2% despite higher LEO costs. Net debt dropped to €1.46b, with net debt to EBITDA at 2.32x and liquidity of about €2.3b supporting the €4b CapEx envelope.

One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all.

Eutelsat Bear Case: Margin Strain Still Front And Center

Bears argue Eutelsat Communications is sacrificing earnings quality as LEO grows into a bigger slice of the portfolio.

"Although Eutelsat Communications is growing LEO revenues and connectivity now represents a larger share of the business, the drop in adjusted EBITDA margin from 54.4% to 51.2% with a €36m rise in operating expenses tied to higher LEO cost of goods sold suggests that early LEO mix might keep compressing margins longer than expected and limit earnings quality even if the top line improves."

The latest print backs that concern. Adjusted EBITDA fell 6.5% to €632m while margin slipped to 51.2% even with like for like revenue growth. LEO now drives roughly a quarter of sales and more than 40% of Connectivity revenue, yet group profitability is still under pressure. Management guiding FY27 EBITDA margin as broadly flat signals no quick relief.

Hunt Quiet Mispricings Now

Eutelsat Communications highlights how mixed earnings, heavy investment and valuation can move in different directions. The real opportunity could be in stocks that appear mispriced before any gap in value potentially narrows.

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That is three of the list. See all 192 potentially undervalued companies →

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