European satellite communications operator Eutelsat is set to receive almost €1 billion in French government-backed financing to expand its OneWeb broadband constellation.
In a June 2025 Investor Presentation, Eutelsat stated that it had already ordered 100 satellites from Airbus Defence and Space in December 2024 to ensure continuity of its current OneWeb service. The presentation also outlined the need for an additional 340 satellites to expand the service’s availability until IRIS2 is operational in the early 2030s. The company estimated that the cost of this extension would be between €2 billion and €2.2 billion.
Along with developing its own constellation, Eutelsat, along with SES and Hispasat, is a core member of SpaceRISE, which the European Commission selected in November 2024 to develop and build its IRIS2 secure communications constellation. The €10.6 billion project will receive 60% of its funding from the EU, with consortium partners responsible for the remaining 40%, including a €2 billion commitment from Eutelsat. With both its OneWeb expansion and its contribution to IRIS2, the company has committed over €4 billion in spending.
On 11 February, Eutelsat announced that it had signed a €975 million financing agreement with the French Export Credit Agency. According to the announcement, the financing will back the ”recently announced contract with Airbus Defence and Space for 340 LEO satellites, on top of the 100 already ordered.”
“We are grateful to the French State for its unwavering support,” said Eutelsat CEO Jean-François Fallacher. “This funding significantly strengthens our financial structure and gives us the means to support the deployment of our LEO activities.”
The financing will be provided by a pool of commercial banks and will be guaranteed by the French government. The deal is, however, still subject to several conditions, including a bond issuance, which would require the company to raise additional funding from private investors before it can access the financing.
The almost €1 billion in new financing follows the company’s €1.5 billion capital raise completed in late 2025, backed by investors including the UK and French governments. The new capital is intended to fund the company’s strategic roadmap, including accelerating deployment of its OneWeb constellation, supporting its participation in the IRIS2 programme, and reducing its overall debt.
Eutelsat reported net debt of just over €2.6 billion in June 2025, up €82.2 million year-on-year, with a net debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) ratio of 3.88×, reflecting its relatively high leverage. Depending on how the funds are used, the new financing may not immediately have a significant impact on its debt load, but it could increase the company’s borrowings over time.”
As it manages its debt burden and commits to more than €4 billion in spending, Eutelsat’s OneWeb offering faces increasing competition. SpaceX’s Starlink network has surpassed 9 million users, while Amazon is pushing ahead with deployment of its Project Kuiper constellation, with more than thirty satellites for its service set to be launched aboard an Ariane 64 later today. The company’s ability to manage its debt while scaling OneWeb and supporting IRIS2 will be important not only to its long-term competitiveness but also to Europe’s future access to sovereign, secure communications services
Keep European Spaceflight Independent
Your donation will help European Spaceflight to continue digging into the stories others miss. Every euro keeps our reporting alive.
