Eutelsat (AO) | Hold | Q3 broadly in line, LEO momentum accelerates

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Eutelsat (AO) | Hold | Q3 broadly in line, LEO momentum accelerates

Eutelsat Hold | Target Price: EUR2.50

Following the release of its Q3 2025/26 revenues, Eutelsat held a conference call with investors. We detail below the main

highlights:

Nexus framework agreement: Management disclosed that the framework agreement signed with the French Ministry of Defence

represents around EUR1bn over 10 years. Contracts will be signed progressively under the umbrella agreement, with first revenue

recognition expected in Q4 FY25/26 and revenues ramping gradually over time.

IRIS2 negotiations: Management indicated that discussions around the IRIS2 Rendez-vous One agreement are taking longer than

initially expected due to programme complexity and the number of stakeholders involved. Still, management stated that

Eutelsat’s role in the LEO component remains unchanged and finalisation is expected within weeks.

Mobile Connectivity and Aero: Management clarified that the recently announced Japan Airlines contract is a pure capacity

agreement distributed through SES rather than an integration contract. More broadly, management highlighted continued strong

traction in aero connectivity, with installations now spanning North America, the Middle East and Asia.

GEO market conditions: Management acknowledged that GEO capacity markets remain structurally oversupplied, resulting in

continued pricing pressure in some regions and applications. This continues to weigh on legacy GEO-enabled services and Video

activities.

India regulatory approval: Management confirmed that regulatory approval to commercially offer LEO broadband services in

India remains pending for all operators, including Starlink and local players. Timing remains uncertain and dependent on local