Eutelsat Group has completed a major financial move by securing €1.5 billion through a capital increase. This step is expected to reshape its position in the global satellite communications market. The initial announcement on June 19, 2025, revealed a target of €1.35 billion, backed by the French government and other key shareholders. However, the final total rose after the United Kingdom formally joined the initiative, contributing €163.3 million. This support was announced during the UK-France summit on July 10, 2025. It marked a deepened partnership between the two countries in a sector of rising geopolitical and industrial interest.
The capital increase has been split into two core components. A Reserved Capital Increase (RCI) of €828 million forms the first part, followed by a Rights Issue worth €672 million. These components are expected to be finalised before the end of 2025, pending regulatory and shareholder approval. The structure of this funding process reflects Eutelsat’s efforts to attract both public and private investment while ensuring wide participation and balanced governance.
The French state has played a central role in this capital raise. Through the Agence des Participations de l’Etat (APE), it committed €551 million to the Reserved Capital Increase, making it the largest single investor. The UK government has invested €90 million in the RCI and €73.3 million in the Rights Issue, underscoring its interest in maintaining and supporting national access to secure satellite infrastructure. Bharti Space Limited also committed €150 million, split into €30 million for the RCI and €120.1 million for the Rights Issue. Other investors included CMA CGM and the Fonds Stratégique de Participations (FSP), with €100 million and €57 million respectively, adding further private-sector backing.
The decision to raise €1.5 billion reflects more than financial need. It signals a major investment in the future of satellite technology, particularly in Low Earth Orbit (LEO) capabilities. Eutelsat has been expanding its LEO operations following the merger with OneWeb in 2023. With over 600 LEO satellites now in service, the company intends to build on this momentum to develop more secure, reliable, and high-speed broadband services. The funding will also support the development of the European Union’s IRIS² constellation, a project aimed at strengthening the bloc’s independence in space-based communications.
The UK’s commitment played a unique role. The decision to take part in the capital increase was not a last-minute addition but the result of several weeks of discussions following the original €1.35 billion target. Its formal announcement triggered an increase in the total funding to €1.5 billion. This move highlighted the UK’s influence in the negotiation process and reinforced the country’s intent to be part of Europe’s satellite future. The UK’s stake will remain at 10.89%, indicating a long-term commitment rather than a short-term financial play.
This capital raise will also lead to a shift in the company’s ownership structure. The French state is expected to increase its share to 29.65%, strengthening its control and influence over Eutelsat’s strategic direction. Bharti Space, despite reducing its overall stake to 17.88% from over 24%, remains a key partner. The UK’s steady 10.89% stake, CMA CGM’s 7.46%, and FSP’s 4.99% round out the main ownership blocks. This redistribution is seen as a move toward wider collaboration while still preserving strong sovereign oversight.
The governance of Eutelsat will be adjusted to reflect this new structure. Investors involved in the Reserved Capital Increase are set to receive board representation in line with their stakes. Half of the board members will be independent, ensuring a more transparent and balanced decision-making process. This new governance framework is intended to align the company’s strategy with its diverse base of investors and stakeholders.
Financially, Eutelsat plans to use the fresh capital to reduce its debt and improve its financial position. The company’s goal is to bring its net debt-to-EBITDA ratio down to around 2.5 by the end of the 2025-26 fiscal year. Achieving this target would help Eutelsat reduce financial risk and increase its ability to invest further in future technology. A separate debt refinancing program is expected to complement this effort.
A major part of the funds will be directed towards LEO expansion. The OneWeb constellation remains the backbone of this strategy. Eutelsat intends to invest €1.0 to €1.1 billion in LEO capital expenditures during the 2025-26 fiscal year. Additionally, the Gen-1 follow-on program will receive €2 billion between 2024-25 and 2028-29. These figures confirm the company’s strong commitment to strengthening its LEO services. Unlike traditional geostationary satellites, LEO satellites can deliver faster connections with lower latency, making them better suited for modern internet applications.
Eutelsat now operates as the first fully integrated GEO-LEO satellite provider. Its 34 geostationary satellites are now complemented by over 600 LEO satellites. This unique dual-orbit structure provides the flexibility to serve various needs, from high-speed broadband in urban areas to secure communications in remote or military locations. This hybrid model is central to Eutelsat’s future as it seeks to offer services that can compete with those provided by other companies, including Starlink.
The OneWeb initiative, now under Eutelsat, holds particular importance for national security. France and the UK both view space as a domain of strategic concern. Eutelsat’s services are expected to support military and institutional communication needs. For instance, the French government’s NEXUS program, worth up to €1 billion, has already secured priority access to the OneWeb network. Similarly, the UK’s investment includes conditions ensuring job creation, access for university students, and priority service access for His Majesty’s Government.
The European Union’s IRIS program also benefits from this capital increase. Designed to ensure the bloc’s ability to operate independently in space, the IRIS constellation will offer secure communication for EU institutions and member states. Eutelsat’s position as the main private investor in this initiative strengthens its role in shaping Europe’s space infrastructure. This focus on strategic autonomy has gained attention as space becomes more contested and as communications infrastructure faces growing cyber threats.
Bharti Space’s role in this capital raise goes beyond finance. The company has been a long-standing supporter of OneWeb and continues to play a key role in Eutelsat’s vision for connecting underserved regions, particularly in the Global South. Bharti’s decision to rebalance its shareholding was made to allow a wider range of strategic partners to participate in Eutelsat’s future. The move also supports Eutelsat’s aim to serve institutional clients, including government and defence users, with high-performance connectivity.
The UK’s participation in the capital increase also serves several national objectives. It supports the development of the UK’s own space sector and aligns with a broader industrial strategy that includes satellite communications as a pillar of economic and technological strength. The government sees satellite technology as vital to its digital infrastructure and economy, with the sector supporting over £364 billion in industrial activity. The participation of UK universities and job creation in this area also contributes to longer-term national goals.
From France’s perspective, this capital raise confirms the country’s determination to build a secure, autonomous European capability in space. President Emmanuel Macron has repeatedly called for other countries, including India, to join France in investing in this sector. The close ties between France and India, represented by Bharti Space, show the potential for wider international cooperation in satellite services.
