In a significant step toward strengthening Europe’s leadership in space and connectivity, Eutelsat has announced a contemplated capital increase of €1.35 billion. The initiative, spearheaded by the French State and major shareholders including Bharti Space Limited, aims to secure the company’s strategic ambitions in the rapidly expanding Low Earth Orbit (LEO) satellite sector.
The capital raise, comprising a reserved capital increase and a rights issue, will enable Eutelsat to execute its long-term vision, enhance financial flexibility, and support ongoing investments in its LEO capabilities and the upcoming IRIS² constellation. The French government, via Agence des Participations de l’État (APE), will contribute €526.4 million, underscoring its commitment to European space sovereignty.
Eutelsat, now uniquely positioned as the only European operator with a fully operational GEO-LEO network, plays a pivotal role in military and secure communications. A 10-year, €1 billion contract with France’s Ministry of Armed Forces further cements its role in the nation’s defense and space communication strategy.
Jean-François Fallacher, CEO of Eutelsat Group, emphasised, “Eutelsat enters a new chapter, centered on the deployment of LEO, a major innovative and technological revolution for the Satellite industry.”
Echoing this optimism, Sunil Bharti Mittal, Founder & Chairman of Bharti Enterprises and Co-Chairman of Eutelsat Group, stated, “I am delighted that under the leadership of President Macron, the French state has decided to back Eutelsat as the European Space Champion and increased its shareholding by injecting a sizeable investment into the company. We are also thrilled to welcome the French armed forces ministry, DGA, partnership with Eutelsat in a long term €1B contract to reserve capacity on Eutelsat’s low-Earth orbit OneWeb constellation for its mission critical needs.”
Looking ahead, Eutelsat forecasts revenue growth to reach between €1.5 billion and €1.7 billion by FY 2028-29, fueled by strong LEO momentum. The company also expects a minimum EBITDA margin of 60% by that period, supported by operational leverage. For FY 2025-26, revenues are expected to align with the previous year while LEO revenues are projected to grow by 50% year-on-year. Gross capital expenditure for FY 2025-26 is estimated at €1.0 to €1.1 billion, primarily directed toward LEO expansion, including procurement of new satellites and preparation for the IRIS² constellation deployment from 2027-28 onward.
