Eutelsat Secures €1 Billion Finance Package to Accelerate OneWeb Growth and Emphasizes LEO Connectivity

Key figures at a glance
- LEO revenue: ?110.5 million, up 59.7%
- Total revenue (currency-adjusted): ?591.6 million
- Net debt: ?1.3 billion (halved)
- LEO satellites ordered: 440

LEO business drives the rebound
The LEO segment is emerging as the main engine of growth. In the first half of fiscal year 2025-26, LEO sales reached ?110.5 million, accounting for about one-fifth of the group?s total revenue. The Connectivity division rose 11.8% to ?307.3 million, while the traditional Video business faced headwinds, with revenue slipping 12.3% to ?266.5 million due to sanctions on certain Russian channels and ongoing structural changes in the broadcast market.

A ?1 billion financing package for OneWeb
Eutelsat secured export credit agency (ECA) financing totaling around ?1 billion to fund the expansion of the OneWeb fleet. The arrangement includes a French state guarantee provided via Bpifrance Assurance Export totaling ?975 million. The funds will enable Airbus Defence and Space to manufacture 340 additional LEO satellites for the OneWeb constellation.

In total, Eutelsat has confirmed the procurement of 440 LEO satellites. The investment is targeted at preserving long-term operational continuity for OneWeb and strengthening Eutelsat?s position in the growing market for satellite-based broadband connectivity.

Capital measures ease the balance sheet
A successful ?1.5 billion share issue has begun to lift the balance sheet, pushing net debt down to ?1.3 billion. The net debt to adjusted EBITDA ratio improved markedly, sliding from 3.92x to 2.00x.

The stronger balance sheet prompted credit-rating upgrades from Moody?s and Fitch. However, the planned sale of passive ground infrastructure to Private-Equity group EQT Infrastructure VI did not proceed, which would have generated net proceeds of roughly ?550 million.

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

Guidance maintained despite the stalled asset sale
Eutelsat reaffirmed its annual targets. Revenue is expected to be roughly flat year over year, with LEO-related revenues projected to grow by around 50%. The adjusted EBITDA margin is anticipated to be slightly below the prior-year level.

Because the ground-infrastructure sale did not close, the company now expects the leverage ratio at year-end to be around 2.7x, rather than the previously targeted 2.5x.

Medium-term ambitions remain intact: by 2028-29, Eutelsat aims for revenue in the ?1.5??1.7 billion range, driven by a sustained expansion of its LEO footprint.

Overall, the group?s strategy underscores a clear shift toward LEO-based connectivity, bolstered by a significant new funding line to boost OneWeb's growth trajectory.

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