Eutelsat Shares Stabilize on Strong Fundamentals and Major Investor Backing

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Following a period of significant volatility and a substantial capital increase, the French satellite operator Eutelsat is showing signs of renewed stability. The company's balance sheet has been successfully strengthened, halting the previous decline in its share price. A key signal for the market has emerged from within the company's core investor base, where a major strategic shareholder seized the recent financing round to make a new investment worth hundreds of millions of euros.

As trading began this week, Eutelsat shares held steady at approximately €1.81. This level represents a recovery from the lows seen in the previous month. The intense selling pressure witnessed in early December 2025—primarily driven by the aggressive placement of subscription rights by SoftBank Group Capital—has now been absorbed. Investor attention is shifting back to the firm's fundamental restructuring.

The recent stabilization is underpinned by a decisive move from a key anchor shareholder. Contrary to concerns that support would come only from internal management, Bharti Space Limited has significantly increased its stake. This vehicle, part of Bharti Enterprises, acquired approximately 88.7 million new shares during the capital increase.

The total investment for this purchase amounts to nearly €120 million. Market observers interpret this substantial capital commitment as a powerful endorsement of Eutelsat's long-term OneWeb strategy, demonstrating a partner's willingness to lock in significant equity.

Operationally, Eutelsat is also reinforcing its foundation. The extension of its partnership with the Cinecolor Group secures vital revenue streams from the traditional video business in Latin America. These cash flows are crucial for funding the capital-intensive expansion of the connectivity division.

Balance Sheet Strengthened by Capital Raise

The recently concluded capital measure has infused the group with approximately €1.5 billion in fresh funds. These resources are allocated primarily toward debt reduction and financing the development of its LEO satellite constellations. The positive impact on key financial metrics is being welcomed by the market:

• Leverage: The leverage ratio has improved from a critical 3.9x to a more solid 2.5x.
• Credit Rating: Moody's has upgraded Eutelsat's credit rating to "Ba3" with a stable outlook.
• Analyst View: Deutsche Bank revised its rating on the stock from "Sell" to "Hold."

With the financing gap now closed and the credit rating stabilized, the most immediate downside risks have been mitigated. The current share price level around €1.81 establishes a credible base, founded on a healthier balance sheet and the clear commitment of a major shareholder.