Stifel maintains its sell recommendation on the stock with a price target of €1.80 following this morning's release of first-half 2025 results.

Eutelsat reported a net loss of €236.5 million for its first half of 2025-26, compared to a loss of €873.2 million a year earlier. Adjusted EBITDA stood at €308.2 million as of December 31, 2025, down 6.1% on a comparable basis.

Stifel notes that Eutelsat delivered first-half 2025-2026 results that were slightly ahead of expectations, with second-quarter revenue and first-half adjusted EBITDA margin exceeding consensus by 1% and 60 basis points, respectively.

"However, it should be noted that this performance was largely influenced by an exceptional impact of around €7 million related to the operation of geostationary (GEO) satellites within fixed connectivity. Excluding this item, underlying operational trends remain, in our view, disappointing, particularly regarding the growth of LEO services and government markets," the research firm points out.

According to Stifel, revenue from government markets declined by 2.2% organically year-on-year, while LEO services revenue, at €56.4 million, was 7% below consensus, reflecting an organic growth rate of 50.5%.

The analyst notes in the report that mobility was a bright spot, with a strong 21% organic increase quarter-on-quarter, thanks to the activation of aeronautical contracts, while video posted performances in line with expectations.

Management has lowered its gross capital expenditure forecast for the 2025-2026 fiscal year by €100 to €200 million, bringing it down to around €900 million. The company also announced the cancellation of the Flexsat Americas program, generating more than €100 million in savings.

Revenue and adjusted EBITDA guidance for fiscal 2026 have been confirmed. The group expects an adjusted EBITDA margin slightly below that of the 2024-25 fiscal year.

Looking further ahead, management is targeting revenue between €1.5 and €1.7 billion and an adjusted EBITDA margin of at least 65% by fiscal year 2028-29.