Eutelsat LEO revenue rises 30% as IRIS² expands backlog to €12.1bn

By Elena Vasquez

Eutelsat reported €168.3 million in first-quarter Connectivity revenue after the market closed on October 29, 2026, up 11.9% like-for-like from a year earlier. Within that segment, LEO revenue rose 30.1% to €70.9 million, while GEO Connectivity increased 1.6% to €97.4 million.

Group revenue came in at €286 million, down 2.4% on a reported basis and 0.9% like-for-like. Revenue from the four Operating Verticals totaled €278 million, fell 2.1% like-for-like and dropped 18.6% from the previous quarter, with a slight currency effect excluded from the year-on-year comparison.

How much is OneWeb contributing?

Mobile Connectivity revenue, which includes Eutelsat's OneWeb constellation, grew 38.1% year on year. Aero supplied the segment's main growth as operators expanded both GEO and LEO connectivity services, while Maritime growth came primarily from the adoption of LEO solutions.

LEO's quarter-wide rise also drew on traction across all three Connectivity verticals: Aero, Maritime and Mobile Connectivity. That growth does not yet offset the continuing contraction in Eutelsat's video business, which remains substantial despite several years of decline.

Video supplied 40% of group revenue, but fell 17.8% year on year. Eutelsat said the decline was compounded by the termination of contracts for Russian direct-to-home channel capacity on the Express AT1 and AT2 satellites, following sanctions against Russia.

What is behind the €12.1 billion backlog?

Eutelsat reported a companywide backlog of €12.1 billion, helped by anticipated revenue tied to IRIS². The company said: “As IRIS² programme entered its construction phase, the backlog now includes revenues associated with the execution of construction-related activities under the programme, amounting to €8.9 billion.”

The €8.9 billion construction component dominates the headline total, rather than an equivalent rise in underlying connectivity and video orders. Excluding it, Connectivity backlog stood at €1.9 billion and Video backlog at €1.2 billion, both slightly lower than on June 30, 2026.

Eutelsat attributed those modest reductions to natural consumption. The reported backlog therefore mixes future service revenue with construction activity entering the order book, while the two established operating backlogs continued to run down.

When can IRIS² and the larger OneWeb network deliver revenue?

Eutelsat gave its forecast in two currency forms: more than $10 billion, equivalent to €8.94 billion, for OneWeb and European IRIS² revenue over 2032-2040, and more than €10 billion in services revenue tied to expanded OneWeb capacity. These are company forecasts tied to rollout, not revenue reported in the quarter.

The forecast rests on future satellites, launches and commercial service availability. Eutelsat expects revenue from OneWeb and the European IRIS² satellites to exceed $10 billion once IRIS² becomes operational, with the larger constellation supporting services revenue across the 2032-2040 period.

Eutelsat will invest €2.23 billion in shared infrastructure and a further €1.16 billion in its own commercial infrastructure between 2027 and 2034. In return, the company will gain access to more than twice the current OneWeb capacity, which it links to the estimated services revenue for 2032-2040.

The launch schedule provides the next set of checkpoints. Eutelsat said: “The first Ka-only satellites will be launched starting in 2029. The commercial Ku-LEO constellation will be fully operational by mid-2032.”

Can LEO growth carry the group this year?

Eutelsat reconfirmed its annual guidance, including more than 30% growth in LEO revenue. As in FY2025-26, management expects that growth to offset declining GEO revenue, particularly Video, producing slight growth in the four Operating Verticals and an EBITDA margin broadly unchanged from last year.

Gross capital expenditure for the year is approximately €1.2 billion. The near-term commercial test is therefore not whether LEO is growing, which it is, but whether that growth can replace mature video revenue while Eutelsat funds a much larger constellation.

The company has set three dates against which to judge that plan: the investment window opens in 2027, the first Ka-only satellites are due from 2029, and the commercial Ku-LEO network should be fully operational by mid-2032. Delivery on that schedule will determine whether projected services revenue can offset the continuing erosion of the GEO base.