Eutelsat Shares Surge on Multi-Billion Euro Satellite Order

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A major new satellite order has propelled shares of European operator Eutelsat sharply higher, signaling a bold move in the intensifying race to provide space-based internet. The company is securing the future of its OneWeb constellation with a massive fleet investment, positioning itself as a formidable competitor to SpaceX's Starlink. Investors rewarded the strategic clarity, sending the stock price climbing significantly.

Market experts view this development as a critical step for maintaining competitiveness. Eutelsat currently operates one of only two fully functional global Low Earth Orbit (LEO) internet networks, the other being its U.S. rival, Starlink. This standing is particularly significant for European government and defense clients seeking alternatives to American providers. The fleet modernization also serves as a bridge to the planned European satellite network, Iris². By ensuring service continuity, Eutelsat solidifies its role as a central player for Europe's digital sovereignty until the Iris² system becomes fully operational.

Details of the Airbus Manufacturing Agreement

The Paris-based conglomerate has commissioned Airbus Defence and Space to build 340 new LEO satellites. This initiative extends beyond mere replacement; it forms the foundation for the ongoing operation of the OneWeb constellation. When combined with an order already placed in December 2024, the total current order book now stands at 440 units.

Production is scheduled for a new assembly line at the Airbus facility in Toulouse, with the first deliveries anticipated by the end of 2026. The objective is to seamlessly replace older satellites reaching the end of their operational life while simultaneously enhancing the network's technological capabilities.

Financial Framework and Technical Upgrades

The company is committing substantial capital to this endeavor, with total investments estimated between €2 billion and €2.2 billion through 2029. The financial foundation for this project was recently bolstered by a capital increase of approximately €670 million. Participants in this funding round included the major Indian shareholder Bharti Space, alongside the governments of France and the United Kingdom.

From a technical perspective, Eutelsat is upgrading its assets. The new satellites will be equipped with digital channelizers and improved on-board processing, which will increase network efficiency and flexibility. Furthermore, management is exploring the leasing of space on the satellites to third-party customers, known as "Hosted Payloads," to unlock additional revenue streams.