Eutelsat Doubles Down on Satellite Connectivity with Government Backing

NEW YORK, NY – November 20, 2025

A Vote of Confidence in Eutelsat’s Strategy

Shareholders of Eutelsat Communications overwhelmingly approved all resolutions at the company’s Annual General Meeting (AGM) this week, sending a strong signal of confidence in its strategic direction. The approvals cover a broad range of items, including financial statements, key agreements with governments and strategic partners, director re-elections, remuneration policies, and authorization for share buybacks. While routine for established companies, these resolutions carry particular weight for Eutelsat given its recent transformative merger with OneWeb and ambitious plans to become a leading integrated GEO-LEO satellite operator.

The AGM approvals underscore investor belief in Eutelsat’s ability to capitalize on growing demand for satellite connectivity, particularly in areas like broadband internet, mobile communications, and secure government services. The company's pursuit of both Geostationary Earth Orbit (GEO) and Low Earth Orbit (LEO) capabilities – a relatively rare strategy – appears to be gaining traction with investors.

Government Support Fuels Expansion Plans

Perhaps the most notable aspect of the AGM outcomes is the strong backing Eutelsat is receiving from key governments, most notably France and the United Kingdom. The approvals pave the way for significant financial investment and strategic partnerships that will be crucial to the company’s future growth.

The French government’s commitment, which includes a roughly €551 million investment and a ten-year agreement worth €1 billion for military connectivity services, is particularly noteworthy. This level of support reflects a broader European push for “technological sovereignty” in space, aimed at reducing reliance on US-based satellite operators and ensuring secure communications infrastructure.

“The level of government investment signals a recognition of the strategic importance of satellite infrastructure,” noted one industry analyst. “European governments are increasingly aware of the need to control their own space assets for both economic and national security reasons.”

The UK government’s investment of approximately €90 million, and a collaborative agreement with NSSLGlobal to deliver connectivity services for critical government activities, reinforces this trend. The commitments highlight a collaborative effort to bolster the satellite industry while simultaneously addressing critical communication infrastructure.

Navigating Financial Strategy and OneWeb Integration

The authorization for a share buyback program provides Eutelsat with increased financial flexibility, allowing the company to manage its capital structure and potentially enhance shareholder value. However, this move also comes amid a period of significant investment in the integration of OneWeb, which requires substantial capital expenditure.

Eutelsat is undertaking a comprehensive financing strategy, including the reserved capital increase and a subsequent rights issue, to support these investments. The company expects to generate approximately €1.5 billion through these measures. One analyst estimates that the capital will be primarily directed towards scaling the LEO constellation and developing the next generation of satellites.

The integration of OneWeb has already begun to yield positive results, with LEO revenues growing by an impressive 84.1% year-on-year, now representing approximately 15% of total revenues. Eutelsat expects this growth rate to continue, with LEO revenues projected to increase by 50% in the coming fiscal year.

“The OneWeb integration is proving to be a strategic masterstroke,” commented another industry observer. “Combining Eutelsat’s GEO expertise with OneWeb’s LEO capabilities creates a compelling value proposition and positions the company as a major player in the satellite communications market.”

The company’s capital allocation strategy underscores a commitment to long-term growth, with a clear focus on expanding its LEO capabilities and securing its position as a leading integrated GEO-LEO satellite operator. While the integration is complex and requires substantial investment, Eutelsat appears to be navigating these challenges effectively, with strong government backing and a clear strategic vision.