Eutelsat Shares Surge as France Leads €1.35 Billion Capital Raise to Boost Satellite Capabilities

Shares of European satellite operator Eutelsat rose sharply on Friday after the French government announced its support for a €1.35 billion ($1.55 billion) capital raise aimed at strengthening the company’s Low Earth Orbit (LEO) satellite operations, CNBC reports.

The stock surged 22% by mid-morning trading in London.

The capital increase, which is also backed by other investors, comes alongside a debt refinancing plan. Together, these measures are designed to bolster Eutelsat’s investment in its LEO network, with a focus on providing secure communications for business and government clients.

As part of the deal, the French state will become Eutelsat’s largest shareholder, taking a 29.99% stake in capital and voting rights. India’s Bharti Space Limited will remain a significant investor with an 18.7% stake. Eutelsat noted that other stakeholders, including the United Kingdom, may participate in the capital raise in the future.

The announcement follows Eutelsat’s recent 10-year agreement with the French armed forces to offer priority access to its OneWeb LEO satellite constellation. The deal positions the company as a key provider of secure space-based communication services for defense and government use.

Eutelsat has experienced substantial stock volatility this year, including a major spike in March when speculation mounted about its potential to serve as Europe’s response to Elon Musk’s Starlink satellite network. Those gains were followed by a sharp decline, but Friday’s rally reflects renewed investor confidence driven by government backing and strategic developments.

“As the only European operator with a fully operational LEO network, Eutelsat is positioned to play a strategic role in supporting critical sectors such as military communications, cyber-resilience, and secure government connectivity,” the company stated.

It added that its mission aligns with European Union and NATO priorities for strategic autonomy.

French President Emmanuel Macron, posting on social media platform X, emphasized the importance of the move, saying the investment secures France’s strategic independence and contributes to Europe’s long-term technological sovereignty. Macron also said he would highlight the decision during his address at the Paris Air Show.