Eutelsat’s Strategic Push to Challenge Starlink’s Dominance

The European satellite operator Eutelsat is mounting a significant competitive challenge in the low Earth orbit (LEO) market, unveiling a dual-pronged strategy within days. By placing a massive satellite order and securing new launch capacity, the company is positioning its OneWeb constellation as a formidable rival to Elon Musk's Starlink network.

On January 16, Eutelsat announced a multi-launch agreement with MaiaSpace, a company founded in 2022. MaiaSpace is developing Europe's first reusable mini-launch vehicle, featuring a payload fairing with a 3.5-meter diameter and a capacity of up to 4 tons to inclined orbits. This contract, coming just days after a major manufacturing deal, is designed to reduce dependency on any single launch provider and ensure the operational continuity of the satellite constellation. The first launches under this agreement are scheduled for 2027.

A Multi-Billion Euro Satellite Order with Airbus

This launch pact follows a substantial manufacturing commitment. Eutelsat recently placed an order for 340 satellites with Airbus Defence and Space. This expands upon an initial order for 100 units placed in December 2024, bringing the total new OneWeb satellite order to 440 units. Production will occur at Airbus's facility in Toulouse, France, with initial deliveries commencing at the end of 2026.

The next-generation satellites will incorporate several technical enhancements, including:
* Advanced digital channelizers for optimized on-board processing
* An architecture focused on long-term performance and reliability
* Hosted-payload capabilities to enable additional business models

The total investment for this expansion program is estimated to be between 2.0 and 2.2 billion euros for the period spanning 2024 to 2029.

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

Government Backing Provides Financial and Strategic Heft

Eutelsat's strategic importance to European governments is a key differentiator. The company operates one of only two fully operational LEO constellations globally, alongside Starlink. This has translated into direct financial support. In 2025, France led a capital increase of 1.5 billion euros, raising its stake in the company to 30 percent, with the United Kingdom and other anchor investors also participating.

Furthermore, the French defence procurement agency (DGAA) secured a framework contract worth up to 1 billion euros over ten years, enabling military use of the OneWeb constellation. This state-backed support provides Eutelsat with considerable financial stability for its ambitious expansion plans.

Operational Momentum and Market Valuation

The company's LEO segment is demonstrating strong growth, reporting a 70 percent increase in the first quarter of the 2025/26 fiscal year compared to the prior-year period. With annual revenues of 1.24 billion euros, Eutelsat's current market capitalization stands at approximately 2.6 billion euros.

This improved financial position influenced Deutsche Bank's analysis, which upgraded the stock from "Sell" to "Hold" in December 2025, citing the stronger balance sheet following the capital raise. The average analyst price target is 2.69 euros. The market awaits the next semi-annual results, expected on February 13, 2026, for confirmation that the operational momentum in the LEO business is being sustained.