Eutelsat Takes First Step in a Comprehensive Financing Strategy
Launches a $960 Million Reserved Capital Increase
Following approval by the Board, investors moved ahead with a $960 million (€828 million) reserved capital increase for Eutelsat to strengthen its financial position and drive future growth. Eutelsat’s Board authorized the equity raise at $4.48 per share, with participants including the French State, Bharti Space Limited, His Majesty’s Government, CMA CGM Participations, and Le Fonds Stratégique de Participations. The move is intended to provide Eutelsat with financial flexibility and facilitate investment in its current Low Earth Orbit (LEO) and future IRIS² constellation activities.
Eutelsat, headquartered in Paris, will see the French State provide $600 million, Bharti Space Limited $32.7 million, the UK Government $97.8 million, CMA CGM Participations $108.7 million, and FSP $61.8 million. After the settlement, the French State will hold 29.65% of Eutelsat’s capital and voting rights, with the other investors holding respective stakes of 17.88%, 10.89%, 7.46%, and 4.99%.
Board appointments will follow, as Jean-Baptiste Massignon and Jérémie Gué take up new roles as directors representing the French State, expanding the Board to twelve members.
A further rights issue of $731 million is planned by year-end, with the same investors committing to their full rights. This two-step capital increase, alongside a debt refinancing plan, aims to reduce Eutelsat’s net debt to EBITDA to roughly 2.5 times by the end of fiscal 2025-26 and to position the company to access other forms of financing.
Eutelsat projects fiscal 2025-26 revenues and EBITDA margin to match or slightly trail those of the previous year, with LEO revenues targeted to grow by 50% annually. The company expects capital expenditures of $1.12 to $1.23 billion and aims for operating vertical revenues between $1.68 and $1.90 billion by the end of fiscal 2028-29, with an EBITDA margin of at least 60%.