Welcome to the Eutelsat first quarter 2026-2027 revenues presentation. For the first part of the conference, the participants will be in listen-only mode. During the questions and answers session, participants will be able to ask questions by dialing #key 5 on their telephone keypad. Now, I will hand the conference over to the speakers, Jean-François Fallacher, Chief Executive Officer, and Sébastien Rouge, Chief Financial Officer. Please go ahead.
Welcome, and thank you for joining us today for Eutelsat's first quarter 2026-2027 revenues presentation. I am Jean-François Fallacher, CEO of Eutelsat, and I am joined by Sébastien Rouge, our Chief Financial Officer. Let us start with the highlights of the past quarter. LEO revenues continues their solid growth rate up 30%, driving sustained growth across all our connectivity activities. Overall, our first quarter revenues were in line with expectations, enabling us to confirm our full year 2026-2027 financial objectives, as well as our long-term targets. Finally, we reached this past quarter a major strategic milestone with the successful completion of the IRIS² first rendezvous. The program has now entered its construction phase, making the transition from program definition to industrial execution and enabling us to recognize EUR 8.9 billion of associated backlog. This milestone further cements Eutelsat's role at the heart of Europe's future sovereign connectivity infrastructure.
Let me now provide precisely an update on the IRIS² program and on the progress we have achieved over the past month. Last August, the European Commission and the SpaceRISE Consortium officially confirmed the launch of the industrialization phase of the program, moving it from planning into full-scale deployment. At the heart of this ecosystem, Eutelsat will leverage its proven operational expertise, systems engineering capabilities, and unique experience in deploying and operating large-scale constellation to deliver one of Europe's most ambitious space program. Our role encompasses the design, the deployment, and the operations of the IRIS² LEO constellation, integrated with a broader multi-orbit architecture spanning LEO, MEO, and, of course, terrestrial infrastructure.
The LEO constellation combines an inclined orbital architecture with beamforming antennas, 5G NTN, and it will dynamically direct capacity to where demand is the greatest, providing higher throughput, improved service quality, and more efficient use of network resources. Optical intersatellite links will further enhance resilience, extend service availability, and reduce reliance on ground infrastructure, and this will benefit governments, enterprises, mobility, and other mission-critical applications. The constellation will also support a new generation of smaller, lighter, and more affordable user terminals, making high-performance satellite connectivity accessible to a broader range of customers. As just said, Eutelsat, as the leader of the LEO segment within the SpaceRISE Consortium, will design, deploy, and operate a constellation of 264 dual Mil-Ka and Ku satellites and 66 Mil-Ka satellites, providing access to over 2 terabit per second of sellable LEO commercial capacity by mid-2032, which is more than twice the current OneWeb capacity.
The total program funding stands at EUR 15.6 billion, of which 74% is publicly funded. This is significantly reducing Eutelsat's capital exposure. Our own CapEx in this project amounts to EUR 3.4 billion, and this is split into EUR 2.23 billion in the shared infrastructure and a further EUR 1.16 billion in the commercial infrastructure, which is consisting of Eutelsat's own payload. These investments will be deployed from FY 2027 to FY 2034 and are structured to complement rather than compete with our existing investment program. Importantly, with construction-related activities now underway, our backlog will now include EUR 8.9 billion of revenues. These future revenues are associated with the execution of the program, expected to be recognized mostly between 2027 and 2031 as construction activities will progress.
Finally, IRIS² will effectively become Eutelsat's next generation LEO infrastructure and will enable us to unlock an estimated EUR 10 billion services revenues between 2032 and 2040. Here you have a look on the roadmap of IRIS². With IRIS², Eutelsat has established a clear and visible LEO roadmap until, as you can see here, until 2040, providing both continuity of service for existing customers while progressively delivering greater capacity. This path begins with the renewal and the expansion of the current OneWeb constellation for the deployment of 440 new satellites. That will be complemented by 229 additional satellites designed to ensure continuity of service, and that progressively will replace satellites reaching the end of their operational life and enhance the network's capabilities. That will bring the total constellation to approximately 1,300 satellites over the 2030 horizon.
The commercial segment of IRIS² itself is expected to be fully operational by mid-2032 and will progressively take over from the current OneWeb constellation while providing access to more than twice the current existing capacity and supporting Eutelsat's long-term value creation. With that, let me now hand over to Sébastien Rouge, who will take you through our first quarter performance in more details.
Thank you, Jean-François. Good evening, everyone. Total revenues for the first quarter stood at EUR 286 million, down 0.9% on a like-for-like basis. They reflected, and that's a good news, a slight positive currency effect. Revenues of the four operating verticals down 2.1% on a like-for-like basis. Finally, in the context of IRIS², EUR 5 million of revenue were recognized during the first quarter from the commencement of construction-related activities. This amount represents an initial contribution that is expected to increase materially over the remainder of the fiscal year as execution of the program advances. Let's have a look at the segmental reporting. Video, representing 40% of revenue, stood at EUR 110 million, a decline of 17.8%. Fixed connectivity revenues representing 21% of the group total decreased by 4.7% to EUR 60 million. Government services, 22% of revenues stood at EUR 60 million, a rise of 14.3%.
Mobile connectivity revenues representing 17% of the group total stood at EUR 48 million, an increase of 38%. Let's start with the details of video. As said above, video revenues amounted to EUR 110 million, down 17.8% year-on-year, reflecting the carry-forward impact of recent contract renewals and capacity optimization initiatives of certain customers, compounded by the termination of capacity contract on the Express AT1 and AT2 Russian satellites. On a quarter-on-quarter basis, revenues were down by 12%, notably reflecting the above-mentioned capacity optimization from certain customer impact. On the commercial front, Eutelsat renewed several long-standing partnerships across its video business, including agreements with Record in Brazil, A1 Group in Central and Eastern Europe, and Télédiffusion d'Algérie, supporting the continued distribution of broadcast services across key video neighborhoods.
Looking ahead, the pace of decline is expected to moderate as most of the recent headwinds are absorbed and performance progressively realigns with underlying market trends. Let's now take a closer look at connectivity, which now accounts for 60% of operating verticals revenue. First quarter revenue stood at EUR 168 million, up 11.9%. They reflected a 30.1% rise in LEO revenues to EUR 70.9 million, underpinned by sustained growth in higher quality service revenues across all three verticals, despite a lower contribution from terminal sales, as well as a 1.6% increase in GEO connectivity revenues to EUR 97.4 million. Quarter on quarter, revenues were down by 22.4%. The quarter-on-quarter decline in connectivity mainly reflects a higher comparison base in Q4 2025, 2026, notably across government services and fixed connectivity, which included catch-up revenues as we announced in the last Q4 release. Let's look at each connectivity vertical in more detail.
Q1 fixed connectivity revenues stood at EUR 59.6 million, down 4.6% year-on-year. The decline primarily reflected more challenging market conditions for GEO-enabled solutions, as well as a lower contribution from LEO terminal sales. This was partially offset by continued growth in LEO service revenues. On the commercial front, Eutelsat continued to expand its connectivity footprint through new agreements across Europe. In Portugal, Eutelsat and the country's leading telecommunication operator, MEO, announced a new partnership to expand the delivery of OneWeb LEO connectivity services. In Germany, Eutelsat also expanded its GEO capacity agreement with EuroSkyPark, extending secure satellite connectivity to critical offshore energy infrastructure in the North Sea through the flexible and scalable GEO capacity of EUTELSAT 10B. These agreements illustrate the growing demand for secure, resilient, and diversified connectivity solutions across both enterprise and critical infrastructure markets. Government services revenues stood at EUR 60.3 million, up 14.3% year on year.
Growth was driven by both GEO and LEO applications, reflecting notably the contribution from the CENTAURE call-off contract under the EUR 1 billion NEXUS framework agreement with the French Ministry of the Armed Forces and Veterans. Services delivered in Ukraine and growing demand for sovereign connectivity service amid a rapidly evolving geopolitical landscape. Eutelsat has announced its participation in the enhanced satellite connectivity project for Greenland, a new initiative supported by the European Union, the government of Greenland, and the government of Denmark to extend reliable connectivity to rural and remote communities across the country. Elsewhere, Eutelsat and Germany's OroraTech, a leader in space-based thermal intelligence, announced a new partnership where OroraTech will reserve space aboard Eutelsat's future OneWeb LEO satellite to host 48 thermal infrared payloads with the options for an additional 48. Mobile connectivity revenues stood at EUR 48.3 million, up 38.1% year on year.
The Aero segment remained the main growth driver, benefiting from the continued expansion of both GEO and LEO connectivity solutions. In maritime, growth was primarily driven by the continued adoption of LEO solutions. Eutelsat successfully completed its first rail connectivity trial in Poland aboard a long-distance train conducted on PKP Intercity's live rail network, demonstrating its OneWeb LEO capabilities on a live rail network. The trial assessed seamless switching between satellites and terrestrial technologies and highlighted the potential of Eutelsat's rail connectivity solution to support passenger connectivity, operational communications, and data service for both passenger and freight rail operators. Let's go to the backlog now. The backlog stood at EUR 12.1 billion as of September 30th, 2026. As IRIS² program entered its construction phase, the backlog now includes revenues associated with the execution of construction-related activities under the program amounting to EUR 8.9 billion.
Excluding this contribution, the connectivity and video backlogs, now respectively standing at EUR 1.9 billion and EUR 1.2 billion, were slightly lower compared to June 26, reflecting their natural consumption. On this note, let me now hand back to Jean-François, who will conclude with our outlook and perspectives.
Thank you very much, Sébastien. The first quarter performance was in line with our expectation, enabling us to confirm our full year 2026, 2027 financial objectives. New revenues are set to drive further our strong growth with anticipated growth over 30%. As in full year 2026, 2027, sorry, full year 2025, 2026, LEO growth will offset the decline of GEO revenues and notably the decline of video revenues. In consequence, we expect to deliver slight growth in the revenues of the company of the four operating verticals and an EBITDA margin at broadly the same level than last year. Gross CapEx this year is expected to amount to circa EUR 1.2 billion. This is reflecting milestone shifts from previous years, as well as the ramp-up of CapEx associated with the renewal of our current OneWeb constellation generation renewal.
We confirm our revenues expectation on the middle term in a range between EUR 1.5 billion and EUR 1.7 billion for the year ending June 2029, supported by the strong momentum of our LEO revenues. Operating leverage is set to drive an improvement in EBITDA margin, which is expected at this horizon above 60%. Now I'm thanking you for your attention, and we are ready to take your questions.
Ladies and gentlemen, we are entering the questions and answers session. If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Roshan Ranjit from Deutsche Bank. Please go ahead.
Oh, evening, everyone. I actually have three questions, please. Firstly, on the video trend, Jean-François, you mentioned the carry forward. Can I just check, is there any further carry forward through the year, or was that all hitting in Q1? And perhaps just tied to that, can you give us a sense of what percentage of your EBITDA comes from the video segment? Secondly, remains a lot of volatility between the terminals and service revenue split. When do we expect that to normalize? And we've clearly seen a bit more activity in Ukraine and you mentioned within your government vertical. Now, if I think you'd previously mentioned bottlenecks in getting the terminals to the field, whether that's from a funding perspective or from actually manufacturing. Has that smoothed out, has that improved, or do you expect to have to invest or see some change for that to speed up?
And lastly, just very quickly, on the guidance, can I confirm that the margin outlook calculation is based on the operating verticals plus other revenues? Thank you.
Thank you, Roshan. I will answer some of your questions, and I will let Sébastien and Hugo, which are on the call, complete the answers. On the video trend, as we said, this is linked to, yes, a lot of carry forward, negative carry forward that is leading to this quarter decline. Obviously, there will be less and less carry forward. And as we were saying, we expect these revenues to go back to, let's say, some kind of market trends in the short term. On your questions on the terminal and service revenue splits on you, this is actually something we are not communicating. Nonetheless, what I can tell you is that, and especially this quarter, our service revenues are taking the share of the lion. This was quite a lower quarter in terms of terminal sales. Nothing to worry about. It's not linked to any bottleneck.
We, at this moment, do not have any bottleneck in our supply chain of terminals. We are having obviously, as you can imagine, some stock. We are forecasting and planning our future demand in terms of terminals and antennas in order to be able to deliver according to the market demand. There is no worry to be having in that segment at all. It's really under control. Indeed, the recent events that happened last week, 10 days ago, are actually keen on accelerating our terminal sales, which is always very good because the more devices and terminals we have out there, we are selling the more in the longer term. There is obviously a usage of our constellation, and this is going to drive even faster the growth of service revenues.
As for your questions on the margin outlook coming from video and coming from actually GEO. From video, obviously, as you can see there is really a big shift in terms of revenue split in the company. Video is now representing only 40% of the total revenues of the company. It used, when I joined a year and a quarter ago, was 50/50. So there is really a shift. Obviously, video revenues are delivering a very substantial EBITDA margin. What we can say now is that we are going to reach this year with OneWeb, let's say, EBITDA breakeven. OneWeb, that in the past used to be actually consuming EBITDA, is going to also start delivering on EBITDA. That's going to grow with the further growth of the company. I don't know if Sébastien and Hugo want to complete.
No, just maybe completing on your small technical question. Yes, you can consider the other revenue as the base for the margin calculation. What we point out is, let's not take the IRIS² construction revenue in the modeling of the margin. It will come with a way lower margin than the group, so let's not distort it. It will be in the Q2 release when we start having sizable revenue coming from IRIS², we will be more vocal on the way we can help you modeling that.
That's great. Thanks, guys.
The next question comes from Stéphane Beyazian from Oddo BHF. Please go ahead.
Yes, thank you. Good evening. Actually, my first question was exactly a follow-up on that. If you could explain to us a little bit better the EUR 8.9 billion. I am surprised that you have included that in your backlog. I guess you do that as a sort of project manager. So I was just wondering how much of that will you be, therefore, accounting into your revenues, into your cost, and what is the share between the different parts of the consumption? It would be helpful to have more information about that.
My second question is regarding, again, D2D, because operators have formed an alliance on that. And clearly they are calling for European solutions. And obviously, Jean-François, looking at your past experience, that could be tempting. So I was just asking if you have any further thinking on the D2D segment and if Eutelsat could play a role there.
Finally, a third question. I was wondering how much of your revenue growth is actually coming or how much of your annual revenues today are coming from competitors who are taking capacity on your constellation and whether this is accelerating or not. Thank you.
Thank you very much, Stéphane. I will take the two last questions, and I will let Sébastien explain you the reason why we took EUR 8.9 billion in our backlog on the IRIS² construction. Thank you for that question because I think it is good to clarify what our expectations in terms of also margins and revenues on IRIS² construction phase. Let me start by your question, which is obviously a very pertinent one, looking at what is happening currently on direct-to-device. As you know, direct-to-device is the possibility that low orbit constellation will offer in the future for mobile devices, smartphones, the ones we are carrying today to not only communicate via mobile terrestrial network, but also with LEO satellite constellations. The European Union will actually reallocate a European spectrum called 2 GHz MSS band post 2027.
That is planned to happen next year for actually new players, European players and international players. The EU clearly has the willingness to have a sovereign EU direct-to-device solutions as well one for governmental use case. In this respect, obviously, it is making sense for Eutelsat to analyze this opportunity. We clearly have a position as an experienced constellation operator. There are only two operational low orbit constellations in the world as we speak. We are one of them running such a constellation, and this is obviously a deep tech system. We are as well a key player in IRIS². So we see for ourself a potential role to play in this, I would say, new business that is going to offer opportunities for a number of players. We see it as obviously very complementary to the telecom operators.
As you were saying, Stéphane, I have spent more than 30 years of my career in classical operators and telecom operators. We clearly do not believe that this will be replacing in any way the mobile classical networks, but can be a very nice complement. At this moment at Eutelsat, to come back on us, we are at the, let us say, in a reviewing stage. We have no firm engagement at this point, but definitely something we are looking at and in the sense of the role that we could play in this, again, a new market that will open up where we see that there will be the need for, here again, a European player and European sovereign player in this field. That is on your first question.
I will quickly answer your third question on the revenue growth on LEO, on let us say, what is the role that our competitors are playing there. Clearly, we have, and this is public historically, quite large what we call take or pay, so an engagement on capacity that was signed with Intelsat with the acquisition of Intelsat by SES. This take or pay has obviously definitely migrated into SES, which is basically reselling our LEO capacity with quite some success.
Mostly, I would say, but not only, but mostly on the aviation sector, on the mobility sector, where as well they have inherited from the strength of Intelsat in that specific area. For the rest, we have other such take or pays, but there are more, let us say, not of the same magnitude with smaller GEO players, and we are in discussions with the number ones of GEO players.
Obviously, if you look at their size, these GEO players are not of the same size of players like SES or Viasat. Now I will maybe pass the floor to Sébastien to explain to you the, let us say, the financial construction on this starting phase of construction of IRIS² that will last between now and 2032.
Yes. Coming back to this backlog. The EUR 8.9 billion really represents the, I would say, the contract that we have with the EU, and that is our portion of the total IRIS² contract, which is under our responsibility. We have included in the backlog because it will progressively flow through our revenue, I would say starting relatively slowly with all the engineering and design of the LEO part of the constellation, and then gradually ramping up with the manufacturing and the launch services. But it is really a full package of activity that is managed by Eutelsat on behalf of the consortium. As you know, we have large subcontractors. We do not do everything ourself. We subcontract a large portion of this amount under our supervision to Airbus, to Thales and to Aerospacelab. But all of this contract will flow through our accounts progressively.
That is why we wanted to highlight that in the backlog so that you are not actually surprised whenever we start recognizing revenue down the road. With this subcontracting scheme, and with the fact that we are at the very beginning of the project, obviously we will be prudent in terms of margin recognition. That is why I think it is safe for all of you to model the margin on our service historical activities and not put any so far on the revenue stemming from this construction contract.
Thank you. Just to follow up. In the end, you are expecting out of the EUR 8.9 billion potentially an EBITDA at the level of your existing service margin? Is that what you are suggesting?
No. I am suggesting the opposite. When really during construction, we have a dedicated margin which will be very limited and small. It is after we have constructed, then we will have service revenue coming from IRIS². And this one we expect to have a margin in the same ballpark of what we have today. But for this specific construction, which is a new business for Eutelsat. We usually just build a constellation for our own purpose. Here, we are building as if we were building a power plant. We are building that to give the keys to the EU and on this. We actually do that in order to take advantage and to be able to operate down the road from 2032 onwards this constellation. But during the construction phase, we will anyway have construction revenue that will come with low margin. But that will flow through our P&L.
Yeah, that is clearer. Thank you. Just so the net, do you have an idea of the net out of the 8.9 that eventually will be to Eutelsat at the end of the plan?
We will build that down the road. It is a very unique contract for us. We will build the margin expectation as the contract progresses. So far the real reason why we enter into that is to make sure that we contribute to a great constellation that we will use down the road. So far, with our model of subcontracting, not aiming at having a large margin. We will keep that at a very low level for the time being and we will build that together in the next quarter and years.
Thank you for your answers. Thanks.
The next question comes from Paul Sidney from Berenberg. Please go ahead.
Good evening. Thank you very much for taking the questions. I just have two, please. Just firstly, big picture, the consensus is expecting around EUR 1.2 billion of revenues this year. You are clearly guiding within two years to get to EUR 1.5 billion to EUR 1.7 billion. So what is really going to get us there if we just take a step back in terms of all the moving parts? I know it is a very high-level question, but just worth revisiting. And just secondly, the IRIS² numbers are fantastic.
Thank you for giving us more detail, but there are so many moving parts and I guess building on the previous question, what do you expect to generate in terms of a return on the project? Is that the way you look at it in terms of a return on capital employed? Will it be free cash flow positive project for Eutelsat.
Again, just to try and put it in simplified terms, because there are so many moving parts and it is hugely complex. But is that the way you look at it in terms of returns and free cash flow generation? Thank you.
Maybe I can take these questions and again, let Sébastien complete. In terms of the revenue guidance, EUR 1.5 billion to EUR 1.7 billion, the moving parts are, on one side, the decline of video revenues that you see is currently quite steep. We see it basically in the middle term, going back to what we call market trends. We see our LEO revenues continuing to grow. And if you look at the company one, two years ago, most of our revenues were GEO and LEO was still representing a few percent of the total company a few years ago. When we closed last year results, LEO is now representing 25% of the company revenues. As I was saying, we are going to reach EBITDA breakeven. So LEO is not only going to deliver revenue growth, but also is going to deliver in the future, EBITDA.
Those two combined are actually explaining the revenue guidance that we have given to the markets, obviously, combined with which is the most important, the demand we see on the market, and that we see actually growing and especially in the segments we are active with, which are B2B and government segments, and with our unique positioning as one of the two existing LEO constellations in the world and the only one which is obviously sovereign and European, that together with our capacity to combine it with GEO stationary satellites. On your second question, which obviously is very important, which is the return on IRIS². Obviously, as you can imagine, looking at the size of the project, we have been extremely cautious in the decision-making. So, the return on investments of this project is actually the one that the company is expecting in any of its investments.
Clearly, we are expecting this investment to return cash and to return cash flows. In a nutshell, let me explain the reason why. For us, it's a good opportunity as well. If you look at our total investment, Eutelsat, the investment of EUR 3.3 billion actually in IRIS². This is roughly half of what we should have invested if we would have built a new constellation, what we call a version 2 constellation on our own. You understood that on this EUR 15.6 billion project in total, 74% of the investment is being actually subsidized by public funds. We are investing this EUR 3 billion in order, of course, to participate to the commons and to the common elements of the constellation, but mostly actually more than EUR 2 billion to invest in our own commercial payload that we will own.
We will have an asset which will be our commercial payload flying, which will deliver a minimum twice more the capacity we are having today on OneWeb, and which will enabling us to continue the growth that we are seeing on OneWeb, because the issue we would have had else would have been around 2032. We would have probably had a capacity limitation. This IRIS² project is really an opportunity for us to have what we call OneWeb next constellation with more capacity at a very important investment, because this is a very important investment, but much less than what we would have had to invest ourselves if we would have built this constellation standalone.
That's very clear. Thank you. Sorry, just have a quick follow-up. The EUR 1.5 billion to EUR 1.7 billion, does that include the revenue coming from the IRIS² project, however you define it?
No, just to be clear, this is without the IRIS² project revenues. Just to, how to say, to insist on what Sébastien was doing, we will report in the future a separate backlog and separate revenues for IRIS² in order to have for everyone the possibility to compare comparable revenue evolutions. We will report separately everything which will concern actually the construction of IRIS².
That is very clear. Much appreciate it. Thank you.
The next question comes from Prithvi Vetsa from Bank of America. Please go ahead.
Yes. Thank you for taking my question. My first question is on the EUR 10 billion revenues that you highlight for the 2032 to 2040 period. Can I ask you are suggesting this as additional revenue rather than or is there like a replacement revenue in that EUR 10 billion? And the other one is on the number of satellites. So you have mentioned 1,300 satellites by 2034, if I am not mistaken. How are you, or what sort of satellites are you retiring by that time? Thank you.
Thank you for your questions. So the last one is very straightforward. Yes, we have today 650 flying satellites. If you add up the 670, we have ordered now, out of which a number are already, how to say, constructed by Airbus, and the factory of Airbus in Toulouse is going to continue producing satellites in 2027, in 2028, and 2029. So in total, we are planning to have 1,300 satellites flying. Now, how many will be fully operational in 2030 is difficult to say, because obviously, these satellites have a given lifetime of seven years. We see some of them will be able to have a longer lifetime. Some of them might have a lifetime that might be slightly shorter. So at this stage, it is quite difficult to say.
But it is clear that probably out of this 1,300, a few hundreds will be at the end of life. That is absolutely clear. Now, on your first question, the EUR 10 billion revenues. I do not know what exactly you mean by replacement revenues. But the way we see it is, the way we have calculated these revenues, and anticipated these expected revenues is pretty straightforward. This is obviously the continuation of the growth of ours, so the carry forward of the revenues we are planning to have with the OneWeb constellation, the current one, plus the additional 670 satellites we are planning to launch. So that is at the horizon 2032. Because as I was saying, the commercial part, the military part of IRIS² will be ready earlier in 2030, 2029, 2030, but the commercial constellation will be ready mid-2032.
The reason is that we need the total of 264 satellites to be operational before we can service customers on this constellation. And starting mid-2032, we are planning to migrate customers until end of 2034 into IRIS². And end of 2034, we are planning to shut down the OneWeb current version, or version that will be flying in 2030. So we have planned basically that a large portion of these revenues will be moved to IRIS², plus the growth that will be generated starting 2032 on this new constellation. Which as you have seen, will have a number of new features, and will be especially fit also to not only accommodate commercial customers, but Art Gov and basically governmental services. Because a part of this constellation is definitely dual, and a part of it is designed for governmental use, and military use in the future.
So just to be clear, the EUR 10 billion is the total revenue that you expect for the entire OneWeb capacity, right?
These are the revenues we expect for the entire new revenues for Eutelsat OneWeb, yes.
Okay. Thank you.
The next question comes from Ben Rickett from New Street Research. Please go ahead.
Hi, guys. Thanks for the questions. I had two, please. Firstly, you have a lot of CapEx ahead of you with the IRIS² CapEx and the OneWeb renewal CapEx. I just wondered if you could talk a bit about what sources of funding you're envisaging for those CapEx, but whether there's more ECA funding, for example. A related question, when do you expect to have back to the markets to issue new bonds? Then a quick third question. Are you able to say what the LEO backlog was at the end of the quarter? That would be really helpful. Thank you.
I will just answer your last question. We are not communicating a split backlog LEO GEO, so we are communicating our service backlog combined. I will let Sébastien answer to your first question on CapEx financing and on insurance.
Yes. On CapEx, I think the roadmap is pretty clear. First of all, with the CapEx that we have highlighted on the midterm, so between now and fiscal year 2029, we are absolutely within the envelope that we had set up during the recapitalization exercise of last year. So, with a total envelope of EUR 4 billion to be spent in FY 2026, and then the three following years. For that, we have a very clear roadmap with cash in hand, with a certain number of unused ECA, as you mentioned. Obviously, cash flow from operations, we are still running a GEO business, which does generate some cash flow. So how will we complement that to bridge the full CapEx envelope with an extension of ECA. We have had, as you know, a large ECA contract of close to EUR 1 billion.
With the continuation of the purchasing of Airbus satellites for the Gen 1R, we can use the setup, and we are about to, I would say, engage into the different parties so that we complement that. Also as part of IRIS², we do not need funding for anything else than our CapEx and our contribution, so the EUR 3.4 billion. The rest will flow from the project contract. I think it is a project with a very large European ownership and we are approached by several institutions to support, I would say, the back end of this investment plan, with mid-term financing that typically support large European infrastructure projects. So we will be more specific whenever it is set up.
But I think the token of confidence that we got from the union by starting and engaging into this project also translate into having access to funding capacity for the long-term project. In between, you are perfectly right, we are managing, I would say, the renewal of our bond financing. The next one is due in October 2028, so we have all the time to refinance that. As you know, we are prudent, so we will do that rather sooner than later. On the other end, I think you do not need me to know that the bond market is a little bit hectic these days. But we have 18 months to get to that, and I have no concern that we will be able to refinance that through the normal market route.
The next question comes from Alessandro Cuglietta from Kepler. Please go ahead.
Yes. Hi. Thanks for taking my questions. I just have two, mostly follow-ups on the construction revenues of IRIS². Was just wondering if you are taking cost overruns risk for this type of project, like a classic prime contractor would do, for example, or if you have any color around that. Also, how should we think maybe about the phasing of those construction revenues? Is that something linear starting next year, or any different trends?
Thank you for the question. So once more, obviously, yes, we are taking, as any prime, we will have revenues amounting to the EUR 8.9 billion over the period. We will have costs because we are subcontracting most of the work to Airbus, Thales, Aerospacelab on our side. Yes, of course, we have taken as any prime margins. Yes, of course, we have taken reserves as any prime. Nonetheless, as Sébastien has been explaining, we want to be prudent and cautious. The reason why we are doing that project is not basically for the margins we are expecting outside the construction of this constellation. The reason why we are doing that is basically to have OneWeb next.
So a second version, more advanced, more powerful, with more capacity of our OneWeb constellation starting mid-2032 in order to be able to continue the growth story of the company in the LEO broadband business. This is clearly the reason why we have not factored in our long-term plan significant margins coming from this construction phase. We will just separately report the construction revenues because they are going to be, as you can see, very significant, especially in the coming years. I will let Sébastien comment a bit more in detail on the phasing.
We gave some frame, so close to EUR 9 billion and mostly will be spread over five years. We have mostly engineering and design phase, which is, I would say 25% roughly of the contract which will be at the beginning. Then we have in the following years, the 75%. It will start to be material this year. When I say material, that will be in the hundreds of million in revenue. This being said, it will be back-end loaded because the bulk of the contract is actually manufacturing and launch of satellites, and that will come later in the process.
Thank you very much.
Ladies and gentlemen, thank you for your questions. Let me now hand over the call to the speakers to conclude this conference.
Thank you very much for being with us this evening. As you have seen, Eutelsat revenues are continuing their solid growth. We had 30% growth this quarter, and we expect sustained growth over the remaining quarters, and above 30% for the full year. We have spoken about it. We have reached this past quarter a major strategic milestone for the company with the signature of the IRIS² program, which is entering in its construction phase today. This is a project which is a very significant one of EUR 15.6 billion investments in total, out of which Eutelsat has a responsibility to deliver the LEO part of this project that will amount to EUR 8.9 billion of revenues in the coming five years.
I think this milestone that we passed this quarter is cementing Eutelsat role at the heart of Europe's future sovereign connectivity infrastructure, giving us absolutely great confidence about the future of Eutelsat in the satcom business. Thank you very much for your attention and for attending our call tonight. Have a good evening.
Thank you.
Thank you for your participation. This concludes our conference. You may now disconnect. We wish you a pleasant evening.