Eutelsat forecasts $11 billion in IRIS²-linked commercial revenue as EU satellite network advances

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Eutelsat forecasts IRIS² revenue

Highlights

Eutelsat expects more than €10 billion ($11.1 billion) in IRIS²-related commercial revenue from 2032 to 2040 as lead for the LEO segment.
The company's total backlog jumps to €12.1 billion, buoyed by €8.9 billion in IRIS² revenues mainly recognized between 2027 and 2031, up from €3.4 billion in June.
Eutelsat's Q1 revenue drops 2.1% like-for-like to €278.3 million, missing the €291 million analyst consensus, but financial targets for 2026-27 and 2028-29 are maintained.

IRIS² role expands long-term backlog

As reported by Reuters, Eutelsat says it expects commercial services revenue of more than €10 billion, or about $11.1 billion, between 2032 and 2040 as it leads the low Earth orbit segment of the EU's planned IRIS² network.

The Franco-British satellite operator has been chosen to lead the LEO portion of the system, which is set to include 330 satellites. The first IRIS² satellites are scheduled for launch in 2029, with initial services expected from 2030.

In a trading update, the Paris-based company says its backlog now includes €8.9 billion in revenue from designing and building IRIS², mainly to be recognized between 2027 and 2031. That figure is more than seven times the €1.24 billion in revenue Eutelsat generated last year, lifting total backlog to €12.1 billion from €3.4 billion at the end of June.

Eutelsat also says it will invest a combined €3.39 billion in shared and commercial infrastructure on the IRIS² network between 2027 and 2034. In return, it expects access to more than twice OneWeb's current bandwidth.

Strategic importance grows despite weak quarter

The outlook gives Eutelsat a potential growth engine as it works to offset a declining video broadcasting business with satellite internet services. Its position has gained importance as Europe seeks to reduce reliance on U.S. technology, particularly because Eutelsat owns OneWeb, the only low Earth orbit satellite network alternative to SpaceX's Starlink.

OneWeb has more than 600 satellites in orbit, and a further 229 are planned in a €1 billion expansion. The broader IRIS² program would significantly extend Eutelsat's scale in the connectivity market.

Even so, the company's first-quarter performance misses expectations. Revenue from its four operating businesses falls 2.1% on a like-for-like basis to €278.3 million in the three months to the end of September, below the €291 million average in a company-compiled analyst poll.

Eutelsat confirms its financial targets for 2026-27 and 2028-29.

In our earlier coverage of Wipro’s better-than-expected quarterly revenue, we noted signs of steadier client spending in overseas markets, particularly a recovery in demand from European customers. We also highlighted how artificial intelligence-related services were starting to create new revenue streams for major Indian IT providers alongside traditional outsourcing work.

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