Eutelsat: Building A European Space Moat

Summary Eutelsat Communications S.A. remains a buy after a 26% sell-off, offering over 50% upside despite a reduced price target of $3.07. LEO revenue surged 69.5% like-for-like, now 25% of group revenue, but heavy CapEx and negative free cash flow persist until at least FY2028/29. Balance sheet strength improved with a capital raise, but net debt leverage is expected to rise as satellite investments accelerate. Key risks include margin pressure, execution on CapEx, and the pace at which government and IRIS² contracts convert to cash flow. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images Eutelsat Communications S.A. ( EUTLF ) has fallen over 25% since my previous report , even though FY2025/26 results confirmed that demand for its OneWeb low Earth orbit network is accelerating. LEO revenue increased almost 70% while the equity raise This article was written by Dhierin Bechai 24.77K Followers Follow Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.