France-Backed Credit Line Fuels Eutelsat’s OneWeb Fleet Renewal

Key facts at a glance
- Financing volume: ?975 million
- Backstopped by a French state guarantee through Bpifrance Assurance Export
- Purpose: financing 340 additional LEO satellites with Airbus Defence and Space
- First-half 2025-26 results due to be published today

State guarantee enables accelerated satellite expansion

On February 11, Eutelsat signed a financing agreement with a consortium of commercial banks totaling ?975 million. The funding is secured by a state guarantee from France?s export agency, Bpifrance Assurance Export.

The proceeds are earmarked for the recently concluded contract with Airbus Defence and Space to supply 340 new LEO satellites. Production will take place at Airbus?s Toulouse facility. These new satellites are intended to progressively replace the existing OneWeb fleet as their predecessors reach the end of their operational life.

Disbursement hinges on several conditions, notably the issuance of a new bond by Eutelsat Communications. The financing will be treated on an equal footing (pari passu) with Eutelsat?s current liabilities.

Fallacher underscores the strategic value

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

Jean-Franis Fallacher, Eutelsat?s chief executive, described the arrangement as a crucial element of the company?s refinancing strategy. He noted that French government support substantially strengthens the balance sheet and enables further expansion of the company?s LEO activities.

The January announcement of Airbus?s order covers 340 additional LEO satellites. When paired with the 100 satellites already on order, the total now stands at 440 units designated for renewing the OneWeb fleet. The existing OneWeb constellation comprises more than 600 satellites spread across 12 orbital planes at an altitude of about 1,200 kilometers.

First-half results in focus

Today, Eutelsat releases its first-half results for the fiscal year 2025-26. Market observers will be particularly watching for the company?s free cash flow, progress on OneWeb integration, and a clear timetable for the proposed bond issue.

From a financial perspective, the company shows a debt ratio of roughly 1.22 and a currently negative earnings per share. The newly arranged funding, together with the large satellite order, is expected to meaningfully bolster liquidity and support the long-term operation of Eutelsat?s LEO infrastructure.

Ad

Eutelsat Stock: New Analysis - 13 February

Fresh Eutelsat information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Eutelsat analysis...