Eutelsat Shares Surge on Major Constellation Expansion Deals

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A pair of significant contracts has propelled Eutelsat's stock to a powerful start this year, with shares climbing more than 30% since January. The momentum stems from agreements that secure both the manufacturing and launch capacity for the expansion of its OneWeb low Earth orbit (LEO) satellite constellation. The central focus for investors is the extent to which these deals underpin the company's ambitious growth strategy in the competitive LEO broadband sector.

The second major announcement came on January 15, when Eutelsat revealed a multi-launch agreement with MaiaSpace, a subsidiary of ArianeGroup. Company statements indicate this contract will account for a majority of MaiaSpace's launch manifest during its first three operational years.

Designed for payloads of up to 4,000 kilograms to low Earth orbit, the Maia rocket is scheduled for a demonstration flight from the Kourou spaceport in 2026, with commercial operations targeted for 2027. MaiaSpace aims to achieve a launch capacity of up to 20 missions per year by 2030.

Yohann Leroy, CEO of MaiaSpace, described the agreement as a validation of Maia's suitability for large broadband constellations. For Eutelsat, the partnership provides crucial launch planning certainty during the early network build-out phase.

A Major Satellite Order with Airbus

Earlier, on Monday, Eutelsat confirmed a comprehensive satellite order with Airbus Defence and Space. The manufacturer will supply 340 additional satellites for the OneWeb fleet. Combined with a batch of 100 units ordered in December 2024, the total package encompasses 440 LEO satellites.

The estimated value of this order reaches up to €2.2 billion. These new-generation satellites are set to incorporate several technical enhancements:
- Increased onboard processing power via digital channelizers
- An optimized architecture for more efficient operation
- Hosted-payload capabilities for additional missions and potential new revenue streams

Production will occur on a new assembly line at the Airbus facility in Toulouse, with initial deliveries expected by the end of 2026. This expansion will grow the OneWeb constellation to over 1,000 satellites, partially closing the gap with SpaceX's Starlink, which already operates nearly 10,000 active units.

Funding the Ambitious Roadmap

The LEO expansion is financially backed by a €1.5 billion capital increase finalized in autumn 2025. France led the funding round, with participation from the United Kingdom, Bharti Space, and CMA CGM. Overall, the company plans investments of approximately €4 billion into network development through 2029.

CEO Jean-François Fallacher highlighted the dynamic growth within the LEO segment. For the 2025 fiscal year, the company anticipates revenue growth of roughly 80% in this division. The newly ordered satellites are intended to ensure service continuity for existing customers while creating additional capacity for future expansion.

Market Performance and Valuation Outlook

Eutelsat shares traded around €2.23 during the morning session. The year-to-date gain exceeds 30%. Average daily trading volume stands at approximately 2.4 million shares, with the current market capitalization near €2.6 billion.

The current analyst consensus places the average fair value estimate at €2.69 per share. Based on today's price, this implies a theoretical upside potential of about 20%.

Investors will gain further insight on February 13, when Eutelsat is scheduled to release its half-year results. Analysts project revenues of around €597 million for the reporting period. These figures will serve as a key indicator for whether the company's aggressive growth and investment trajectory in the LEO business is progressing as planned.