Eutelsat’s Strategic Pivot: Capitalizing on European Ambition and Fleet Renewal

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Eutelsat is accelerating its corporate transformation at a rapid pace. With a major capital increase now complete, the satellite operator is moving forward with the concrete implementation of the European IRIS² megaproject while simultaneously funding a comprehensive fleet upgrade. This dual strategy raises a critical question: can these initiatives provide a durable competitive edge against dominant US rivals?

A significant step in Eutelsat's strategic overhaul was finalized in December 2025: a rights issue raising approximately €670 million. This transaction completed a broader capital increase program totaling €1.5 billion. The primary destination for these new funds is a substantial renewal of the OneWeb satellite constellation, a project with an estimated investment requirement of up to €2.2 billion.

The company's refreshed shareholder register highlights its geopolitical and strategic importance:
* French State: 29.65 %
* Bharti: 17.88 %
* United Kingdom: 10.89 %

The IRIS² Project Moves to Implementation

In a parallel and crucial development, the SpaceRISE consortium led by Eutelsat has initiated the next phase for the European satellite constellation IRIS². The project entered a concrete stage in late December 2025 with the issuance of "Requests for Proposals" (RFPs) to industry partners. These solicitations are for the manufacture of 272 Low Earth Orbit (LEO) satellites, to be positioned at an altitude of 1,200 kilometers, and for the associated launch services.

Should investors sell immediately? Or is it worth buying Eutelsat?

Aerospacelab and Airbus Defence and Space are viewed as the frontrunners for the LEO satellite contract. A politically sensitive EU mandate remains in place, requiring that a minimum of 30% of the contract value be awarded to small and medium-sized enterprises operating outside the core consortium. The project timeline is aggressive, targeting the start of manufacturing for the first batch between 2026 and 2027, with the goal of offering initial government services by 2030.

Operational Execution and Competitive Challenges

Alongside these strategic projects, Eutelsat is reporting operational progress. A new partnership with Airtel Gabon will introduce OneWeb connectivity to the African rail sector. This initiative serves as a key pilot for scaling services in emerging markets, where terrestrial infrastructure is frequently lacking.

With its financing secured and a clear roadmap for IRIS² established, Eutelsat's focus is now squarely on operational execution. The company's near-term trajectory will be heavily influenced by two factors: the successful, on-schedule launch of the first 100 new OneWeb satellites by the end of 2026, and its ability to defend profit margins in direct competition with services like Starlink.