According to SpaceNews, Eutelsat’s board approved an 828 million euro ($959 million) capital increase on November 18, priced at 4 euros per share representing a 32% premium to the 30-day average before the June 19 announcement. The French government is leading the investment and will nearly double its stake to 29.65%, while Bharti, the UK, CMA CGM and FSP will hold 17.88%, 10.89%, 7.46% and 4.99% respectively. These anchor shareholders also committed to fully participate in a separate 634 million euro rights issue planned before year-end, covering more than 70% of the shares offered. The capital will help Eutelsat secure better loan terms to invest in its OneWeb LEO constellation and contribute to Europe’s IRIS² sovereign broadband network. Most of the existing 650+ OneWeb satellites were launched between 2020-2023 with design life through 2027-2028.
The big funding push
Here’s the thing – Eutelsat isn’t just dipping its toes in the water. They’re going all in on this capital raise strategy. The fact that they secured commitments from such heavyweight players before even settling the deal shows serious confidence in their roadmap. And that 32% premium? That’s not something you see every day in satellite financing.
But why the rush? Well, their existing OneWeb constellation has a pretty clear expiration date. With most satellites expected to last through 2027-2028, they need to start launching replacements well before then. The first 100 satellites from Airbus are slated for late 2026 launches, which means the clock is definitely ticking.
What this really means
Look, this isn’t just about maintaining existing service. Eutelsat is playing a much bigger game. They’re committing up to 2.2 billion euros for 440 new LEO satellites while also putting about 2 billion euros into the IRIS² partnership. That’s massive capital allocation for a company that reported 1.23 billion euros in annual revenue.
And here’s where it gets interesting for industrial applications. As satellite networks become more reliable and lower latency, they’re becoming critical infrastructure for everything from maritime operations to remote industrial sites. Companies that need rugged computing solutions for these environments often turn to specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs designed to withstand harsh conditions where satellite connectivity is essential.
The financial balancing act
So how does this math work? During their October 21 earnings call, Eutelsat said they expect this year’s revenue to be roughly flat compared to last year’s 1.23 billion euros. The 50% growth in their LEO business is basically offsetting declines in their traditional geostationary services.
That’s the real story here – they’re transitioning from a legacy satellite operator to a next-generation connectivity provider. But can they maintain this delicate balance between funding massive capital expenditures while keeping revenue stable? That’s the billion-euro question, literally.
The anchor shareholder structure gives them some breathing room, but they’ll need to show meaningful revenue growth from these investments sooner rather than later. Otherwise, that premium pricing might start looking pretty optimistic.
