The European satellite operator Eutelsat is adjusting its financial roadmap following a significant setback. A planned transaction to sell its passive ground infrastructure to investor EQT has fallen through, depriving the company of anticipated net proceeds worth €550 million. This development is set to increase the firm’s projected debt load, even as it commits billions to overhaul its OneWeb satellite fleet.
Strategic Investments Proceed Despite Financing Shift
Undeterred by the failed sale, Eutelsat is pushing ahead with a major technological upgrade. The company has placed a substantial order with Airbus Defence and Space for 340 new Low Earth Orbit (LEO) satellites. This contract, combined with a previous order, brings the total to 440 units scheduled for delivery starting in late 2026.
Manufactured at the Airbus facility in Toulouse, these satellites will replace older models within the OneWeb constellation. The ambitious renewal program carries a hefty price tag, with total expansion costs between 2024 and 2029 estimated at €2.0 to €2.2 billion.
The Fallout from a Blocked Transaction
The definitive collapse of the deal with EQT Infrastructure VI occurred in late January. Eutelsat had firmly accounted for the transaction, but certain conditions precedent were not met. Market observers attribute the failure to intervention by the French government, reportedly on national security grounds.
The financial implications are direct. Without the €550 million influx, management has revised its key debt ratio forecast. The projected net debt to EBITDA ratio for the end of the 2025-26 fiscal year has been adjusted upward from 2.5x to 2.7x. Company leadership, however, stresses that funding for its core strategic investments remains secure.
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A positive note accompanies the revision: Eutelsat has also raised its long-term EBITDA margin forecast. For the 2028-29 fiscal year, the margin is now expected to reach 65%, a five-percentage-point improvement over previous guidance.
Core Business Demonstrates Resilience
On the operational front, Eutelsat has secured long-term stability in a key market segment. The recent extension of its partnership with Poland’s Polsat Plus Group, formalized in late January, guarantees continued capacity on the critical HOTBIRD orbital position.
This collaboration, ongoing since 1992, is fundamental to Eutelsat’s reach in the European television market, where it serves over 130 million households. The renewal provides valuable revenue visibility.
Key Developments at a Glance
- Financial Setback: €550 million sale to EQT terminated.
- Leverage Adjustment: Net debt/EBITDA forecast raised to 2.7x.
- Fleet Modernization: New order for 340 Airbus satellites placed.
- Customer Retention: Long-term contract with Polsat Plus Group extended.
Investors will be looking for detailed explanations when Eutelsat releases its second-quarter results on Friday, February 13, 2026. Management is expected to outline how it intends to strengthen the balance sheet in the absence of the EQT proceeds and whether operational performance in its LEO and video businesses can offset the higher debt ratio.
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