Eutelsat’s Strategic Surge: A Multi-Billion Euro Satellite Expansion

Eutelsat FR0010221234

European satellite operator Eutelsat has fundamentally reshaped its business trajectory through a rapid series of three strategic agreements. The cornerstone of this move is a massive order for 440 low Earth orbit (LEO) satellites, valued at an estimated €2.2 billion. This ambitious investment, funded by a €1.5 billion capital increase completed in December 2025, triggered volatile trading in the company's shares, which initially surged 14% before undergoing a correction.

Shortly after the satellite order, Eutelsat moved to secure its launch strategy. On January 16, the company signed a multi-launch agreement with French startup MaiaSpace. The deal covers approximately ten launches scheduled between late 2027 and 2029, which would account for roughly half of the planned launches for the new OneWeb satellite constellation.

MaiaSpace, a subsidiary of ArianeGroup, is developing a partially reusable launch vehicle capable of carrying payloads of up to 4,000 kilograms into low Earth orbit, with commercial operations slated to begin in 2026. This partnership is strategically significant, reducing Eutelsat's reliance on non-European providers like SpaceX.

A Major Satellite Order to Refresh the Constellation

The company announced an order for 340 additional LEO satellites on January 12. This complements an initial batch of 100 units ordered the previous December, bringing the total new order to 440 spacecraft. Production will occur on a new assembly line at the Airbus Defence & Space facility in Toulouse.

The first satellites from this order are scheduled for delivery by the end of 2026. They are designed to replace Eutelsat's first-generation OneWeb satellites, which are approaching the end of their operational lifespan between 2027 and 2028. The new models feature technological upgrades, including advanced digital channelizers for enhanced on-board processing capacity.

Contract Renewal Provides Revenue Visibility

Adding to the flurry of announcements, Swiss TV platform Kabelio signed a contract extension on January 20 for satellite capacity on the Hotbird position at 13° East. The new agreement runs until the end of 2031, extending the partnership five years beyond its original expiration date at the end of 2026.

Kabelio has operated a direct-to-home (DTH) bouquet of over 60 HD channels in four languages since 2020, serving Swiss households without cable access. This early renewal provides long-term planning security for both the platform and its broadcast partners.

Market Reaction and Financial Outlook

Eutelsat's share price experienced significant movement following the announcements. On January 19, the stock jumped 14.09% to €2.55, with trading volume hitting 7.5 million shares—far above the average of 2.4 million. A correction followed the next day, pulling the price back to €2.39.

Despite the recent volatility, the equity has gained approximately 49% since the start of 2026. The company's current market capitalization stands at around €3 billion, and the average analyst price target is €2.69.

The capital increase that enabled the satellite procurement was completed in December 2025. Following this transaction, the French state holds a 29.65% stake. Other anchor shareholders include the British government, the Indian conglomerate Bharti, shipping group CMA CGM, and the FSP investment fund.

Eutelsat has reaffirmed its fiscal year 2025-26 guidance, projecting LEO revenue growth of 50%. Management is targeting total revenues between €1.5 billion and €1.7 billion by the end of the 2028-29 fiscal year. The market will gain further insight into the operational impact of this investment offensive when the company releases its half-year results on February 13.