Eutelsat's IRIS² Milestone Adds EUR 8.9 Billion to Backlog as Q1 Sales Disappoint
Published on 11/01/2026 at 16:11 | Editorial boerse-global.de
Eutelsat shares shed 9.0% on Friday to close at EUR 1.79, after the satellite operator reported quarterly revenue that fell short of analyst expectations — even as it booked a multibillion-euro boost to its order book from Europe's flagship secure connectivity programme.
IRIS² Moves from Design to Construction
The company confirmed on Thursday that IRIS², the European Union's satellite constellation, has entered its construction phase after clearing the "First Rendez-Vous" milestone. That step brought EUR 8.9 billion of future construction-related programme revenue into Eutelsat's backlog.
Total backlog stood at EUR 12.1 billion as of 30 September, a figure that already includes the IRIS² contribution. The amount represents future revenue rather than sales booked in the quarter.
Beyond the build work, Eutelsat expects to generate more than EUR 10 billion in commercial services revenue from its role in the network between 2032 and 2040 — a horizon stretching well past the financial targets the group also reaffirmed. The constellation is slated to comprise 330 satellites, with the first launches planned for 2029 and initial services anticipated from 2030.
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A Split Picture in the Core Business
Revenue for the first quarter of fiscal 2026-27 came in at EUR 286 million, down 2.4% year on year on a reported basis and 0.9% lower on a like-for-like basis. The four operating business units together generated EUR 278.3 million, a comparable decline of 2.1%. Analysts polled by Reuters had expected EUR 291 million from those divisions, so the miss was concentrated in the operational side of the group.
Underneath the headline number, the two halves of the business pulled in opposite directions. LEO revenue — income from satellites in low Earth orbit — climbed 30.1%, while the video segment saw sales fall 17.8%. Reuters flagged the weaker-than-expected showing from the operating divisions as a likely near-term drag on the stock following the release.
Guidance Held, but Questions Linger
Alongside the quarterly update, Eutelsat reiterated its financial objectives for both fiscal 2026-27 and fiscal 2028-29. The confirmation offers some reassurance to investors weighing a soft top line against a backlog now swelled by the IRIS² programme.
Eutelsat at a turning point? This analysis reveals what investors need to know now.
For now, the market's reaction suggests the revenue shortfall carried more weight than the contract momentum. Whether the construction-phase backlog and the long-dated services opportunity can shift that balance will depend on execution over a timeline stretching well into the next decade.
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