Eutelsat's €1.5B Raise: A State-Backed Bet on the Hybrid Space Race

LONDON, UK – December 12, 2025 – In a powerful display of shareholder and sovereign backing, satellite operator Eutelsat Group has successfully closed a monumental €1.5 billion capital raise, positioning it to aggressively challenge competitors in the increasingly crowded Low Earth Orbit (LEO) satellite market. The financing, capped by a heavily oversubscribed €670 million rights issue this week, provides the critical fuel for the company’s ambitious strategy to build out the world’s first fully integrated GEO-LEO satellite network.

The move is more than a simple financial transaction; it's a calculated geopolitical gambit. With significant capital injections from the French and British governments, alongside strategic corporate partners like India’s Bharti and French shipping titan CMA CGM, Eutelsat is being solidified as a key strategic asset for European digital sovereignty. This war chest is earmarked to accelerate LEO deployment, fund future constellations like the European Union's IRIS², and directly compete with American giants like SpaceX’s Starlink, all while maintaining a disciplined approach to its balance sheet.

Fortifying the Financial Arsenal

The final piece of Eutelsat's capital puzzle fell into place with the conclusion of its rights issue, which saw existing shareholders clamor for new stock. The offering was oversubscribed by 133%, with demand reaching approximately €891 million for the €670 million in shares available. This robust demand underscores a deep-seated belief in the company’s long-term vision, even amidst recent market volatility. The new shares were issued at a significant discount of €1.35, a common tactic in rights issues that, while dilutive, proved effective in securing the necessary capital.

This success follows an €828 million reserved capital increase completed in November, subscribed by its key strategic and sovereign partners. Jean-Francois Fallacher, Chief Executive Officer of Eutelsat, commented on the strong support, stating it "reflects the continued confidence of our shareholders in Eutelsat’s long-term strategic roadmap." He added that the transaction "significantly strengthens our financial structure and gives us the means to support the deployment of our LEO activities while maintaining a disciplined deleveraging trajectory."

The market’s reception has been a tale of two signals. The announcement of the discounted rights issue, coupled with news that major shareholder Softbank was selling a portion of its rights, initially pushed Eutelsat's stock to multi-month lows in early December. However, credit rating agencies provided a powerful vote of confidence. Both Moody's and Fitch upgraded Eutelsat’s long-term credit rating, citing the improved financial structure. Moody’s moved its rating to Ba3 with a stable outlook, a nod to the company's deleveraging plan which aims to bring its net debt to adjusted EBITDA ratio down to a more manageable 2.5x by the end of the 2026 fiscal year.

Fueling the Hybrid Satellite Future

The €1.5 billion injection is not just about shoring up finances; it's about underwriting a distinct technological vision. Since its landmark 2023 merger with OneWeb, Eutelsat has championed a hybrid network model, combining its legacy fleet of 34 high-power Geostationary (GEO) satellites with OneWeb’s constellation of over 600 LEO satellites. This integrated approach allows the company to offer a unique blend of services: the ubiquitous coverage and massive broadcast capacity of GEO with the high-speed, low-latency connectivity of LEO.

This capital will directly fund an ambitious investment plan of approximately €4 billion through 2029. A primary focus is the acceleration and replenishment of the LEO constellation, a capital-intensive necessity given the shorter lifespan of LEO satellites compared to their GEO counterparts. This ensures Eutelsat can maintain and enhance its competitive edge in high-growth markets like mobile connectivity for aviation and maritime, fixed broadband for underserved communities, and secure government services.

Crucially, the funding also positions Eutelsat as a central player in Europe’s next-generation strategic infrastructure. A portion of the proceeds is expected to support the development of IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite), the European Union's planned multi-orbit constellation designed to ensure autonomous and secure communications for government and commercial users, reducing reliance on non-European systems.

A Constellation of National Interests

Peeling back the layers of the transaction reveals a powerful convergence of corporate strategy and national interest. The shareholder register now reads like a who's who of strategic players with deep stakes in global connectivity and security. The French state, via the Agence des Participations de l’Etat (APE), has emerged as the anchor shareholder with a nearly 30% stake, cementing Eutelsat's role as a French industrial champion.

The United Kingdom's government, which was instrumental in rescuing OneWeb from bankruptcy in 2020, has solidified its position with an almost 11% stake, ensuring it has a seat at the table in a critical post-Brexit space asset. This investment underscores the UK's national space strategy and its desire to maintain influence in the global satellite communications market.

Beyond sovereign interests, the corporate logic is equally compelling. Bharti Space Ltd, part of the Indian conglomerate that also co-rescued OneWeb, maintains a significant 18% stake, reflecting its ambition to be a global leader in digital infrastructure, particularly in connecting the unconnected. Perhaps the most telling new investor is CMA CGM, one of the world's largest shipping and logistics companies. Its €150 million investment for a 7.5% stake is a clear signal of vertical integration. As maritime operations become increasingly digitized, securing reliable, high-speed satellite connectivity is no longer a luxury but a core operational necessity for managing fleets, tracking cargo, and ensuring crew welfare.

The Long Game in a Crowded Orbit

With its financial future secured and its strategic backers locked in, Eutelsat is now poised to execute its long-term game. The company's strategy stands in deliberate contrast to the Silicon Valley "move fast and break things" ethos embodied by its chief rival, SpaceX's Starlink. While Starlink has rapidly deployed thousands of satellites and captured significant market attention, Eutelsat is playing a more patient, marathon-like game, built on a foundation of public-private partnerships, diversified revenue streams, and a focus on financial sustainability.

This capital raise is a testament to that approach. It provides the long-term, patient capital needed to compete in an industry with immense upfront costs and long payback periods. By locking in its major shareholders for a 180-day period, the company has also ensured a period of stability as it begins to deploy the new funds. This strategic financing enables Eutelsat to not only keep pace with the LEO replacement cycle but also to solidify its role as the premier European-based alternative for global satellite services, a position of increasing importance amid growing geopolitical tensions. The challenge now is execution: turning this mountain of capital and strategic backing into sustained growth and market leadership in the new space economy.