Eutelsat Shares Surge on Multi-Billion Euro Satellite Expansion

European satellite operator Eutelsat saw its share price jump more than 14 percent in a single trading session. The catalyst was a major strategic expansion announcement, involving substantial new satellite orders and launch contracts with a total value of 2.2 billion euros, excluding launch costs.

The ambitious expansion is underpinned by robust financing. Eutelsat secured 1.5 billion euros in fresh capital at the end of 2025. Notably, the French state significantly increased its stake to 29.65 percent, positioning itself as the company's largest single shareholder.

Furthermore, Eutelsat is a key member of the SpaceRISE consortium, which was awarded the EU contract for the IRIS 2 project. This highly secure European satellite communications system will comprise 272 satellites in low Earth orbit (LEO) and 18 in medium Earth orbit (MEO), featuring laser-based links. The concession for this system runs for 12 years.

A Massive Satellite Order with Airbus

At the core of the expansion is a substantial new order with Airbus Defence & Space for 340 additional OneWeb satellites. This follows an earlier order for 100 units placed in December 2024, bringing the total new satellite commitment to 440 LEO units. Production will occur at the Airbus facility in Toulouse, with initial deliveries scheduled for late 2026.

These next-generation satellites are designed to replace older OneWeb models launched in 2019 and 2020 that are nearing end-of-life. They incorporate several key technological upgrades:
* Advanced digital channelizers for superior on-board processing capabilities.
* Enhanced operational efficiency and flexibility.
* Support for "hosted payloads," a feature of particular interest for military applications.
* An optimized architectural design for maximum long-term performance.

Eutelsat has confirmed it is already in discussions with several European defense ministries regarding dedicated payloads on the new satellite fleet.

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

Securing Launch Capacity with MaiaSpace

In parallel with the manufacturing deal, Eutelsat finalized a multi-launch agreement with MaiaSpace, a subsidiary of ArianeGroup. The contract covers approximately ten launches starting in 2027, accounting for roughly half of the company's planned launch volume through 2029.

MaiaSpace is developing Europe's first reusable mini-launcher, capable of delivering payloads of up to four tons to low Earth orbit. Its 3.5-meter payload fairing is specifically configured for deploying satellite constellations.

For the remaining required launches, Eutelsat could utilize SpaceX's Falcon 9 rocket, which can carry 45 OneWeb satellites per mission. The company also holds a contract with Blue Origin dating back to 2017 for a New Glenn launch, potentially available for OneWeb satellites in 2027.

Growth Outlook and Market Reaction

Eutelsat has provided ambitious financial guidance, forecasting LEO revenue growth of approximately 50 percent—or potentially higher—through 2026 and 2027. The company's overall revenue target is set between 1.5 and 1.7 billion euros by the close of the 2028/29 fiscal year.

Following the announcement, Eutelsat shares traded at 2.55 euros. The average price target among analysts currently stands at 2.69 euros, with a wide range of estimates spanning from 1.40 to 5.22 euros.