Eutelsat Shares Show Resilience with Key African Contract

Eutelsat FR0010221234

A significant new contract in Africa is providing fundamental validation for Eutelsat's strategic direction, helping its shares recover from recent volatility. The stock's advance beyond the €1.80 mark represents more than a simple technical rebound; it signals growing market confidence in the tangible progress of the OneWeb integration.

The catalyst for renewed investor interest is an expanded partnership with telecommunications provider Airtel Gabon. Under this agreement, Eutelsat will deploy its Low Earth Orbit (LEO) connectivity services, delivered via the OneWeb network, to provide internet for railway operations. This collaborative project with the Transgabon Railway Operating Company (SETRAG) aims to equip passenger trains with high-speed internet—a technically demanding application.

Following successful tests conducted in October 2025, a broad rollout is now commencing. This development is crucial to the investment narrative for several reasons:

• Proof of Technology: The project demonstrates the capability of LEO satellites to deliver reliable service to fast-moving objects.
• Strategic Confirmation: It reinforces Eutelsat's focus on B2B infrastructure projects, steering clear of direct price competition with end-user providers like Starlink.
• Growth Pathway: Expansion into emerging markets, such as Gabon, is viewed as a central component for driving future revenue.

Market Digests Dilution from Capital Raise

The share price rise to approximately €1.83 indicates that the market is absorbing the effects of a major capital increase finalized in December 2025. Eutelsat raised roughly €1.5 billion through this measure, with proceeds allocated to reducing debt and financing its next-generation satellite constellation (Gen-2).

While this necessary balance sheet repair initially caused significant dilution for existing shareholders, it effectively removed acute insolvency risk. With an improved financial structure and stabilized ratings from agencies like Moody's, the focus of valuation is shifting back to operational performance. Rising trading volume suggests institutional investors may be using the current price level for renewed positions.

The combination of secured financing and this operational "proof-of-concept" in Gabun substantially reduces the equity's risk profile. The immediate technical focus is now on whether the share price can maintain the €1.83 level by the close of trading, which would potentially open a path toward the next chart-based resistance zones.