Shares in French satellite operator Eutelsat soared by nearly 10% in a single trading session. The catalyst was a significant expansion of its partnership with Airbus, securing an order for an additional 340 satellites destined for the OneWeb constellation. This move solidifies the company’s position as Europe’s primary contender against SpaceX’s Starlink in the low-Earth orbit (LEO) broadband arena.
Strategic Expansion and Financial Backing
The new agreement with Airbus Defence and Space, to be executed at the Toulouse facility, brings Eutelsat’s total commitment to 440 next-generation satellites. This figure includes an initial batch of 100 units ordered in December 2024. The total investment for this fleet is projected to reach between €2.0 and €2.2 billion, with expenditures spread through 2029. Initial deliveries are scheduled to commence by the end of 2026.
This substantial procurement is strategically timed to replace Eutelsat’s first-generation OneWeb satellites, which are expected to reach the end of their operational lifespan between 2027 and 2028. A key enhancement for the new fleet involves upgraded digital payloads from technology firm Ramon.Space, which are confirmed for at least 70 of the first 100 satellites. These improvements are designed to facilitate superior connectivity with Eutelsat’s existing geostationary satellites and the forthcoming European Union IRIS² infrastructure project.
Market Reaction and Share Performance
The market responded enthusiastically to the news. Eutelsat’s stock price jumped from approximately €1.92 to over €2.10, marking a gain of 9.6%. Trading volume exceeded 4 million shares, significantly above the daily average of 2.1 million, underscoring heightened investor interest. Despite this positive movement, the share price remains substantially below its peak of over €9.00 in early 2025, a level depressed by subsequent capital increases.
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Government Support Underpins Ambitious Plans
The financing for this ambitious expansion is already secured. Eutelsat bolstered its balance sheet through two major capital raises in late 2025. The company first gathered €828 million in November from a consortium of anchor investors, including the French and British governments, Indian conglomerate Bharti, shipping group CMA CGM, and several French insurers. This was followed by a further capital increase of €670 million in December. The French state now holds a stake of up to 30%, reflecting Eutelsat’s status as a strategic asset for European space sovereignty.
Key Project Details:
* Total Satellite Order: 440 units
* Total Investment Range: €2.0 – €2.2 billion (2024-2029)
* First Deliveries: Late 2026
* Projected LEO Segment Growth: 80% revenue increase in 2025
With a planned constellation of over 600 satellites across 12 orbital planes, Eutelsat operates the sole fully functional European LEO network alongside Starlink. The company’s focus remains on business-to-business segments, including maritime and in-flight connectivity, services for government agencies, and providing broadband to underserved regions. Eutelsat currently commands a market capitalization of around €2.5 billion, with its shares trading at a price-to-book ratio of 0.87.
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