Euronext Paris / London Stock Exchange: ETL) (the “Company”) Board of Directors approved the launch of a €828 million equity raise by way of reserved capital increase at a price per share of €4.00, to be subscribed by the French State, Bharti Space Limited, His Majesty’s Government, CMA CGM Participations, and Le Fonds Stratégique de Participations (“FSP”) (the “Reserved Capital Increase”), in accordance with the Extraordinary Resolutions voted at the General Shareholders’ Meeting held on 30 September 2025.
The French State will subscribe for €551 million, Bharti Space Limited for €30 million, the UK Government for €90 million, CMA CGM Participations for €100 million, and FSP for €57 million.
Following this Reserved Capital Increase, the French State would hold a stake of 29.65% of the capital and voting rights of the Company, while Bharti Space Limited, UK Government, CMA CGM Participations and FSP would respectively hold 17.88%, 10.89%, 7.46% and 4.99% of the share capital and voting rights of the Company.
The settlement of the Reserved Capital Increase is expected in the next few days.
Following the completion of the Reserved Capital Increase, Jean-Baptiste Massignon and Jérémie Gué, appointed by the General Shareholders’ Meeting of 30 September 2025, will take up their positions within the Board of Directors as directors appointed by the French State. The Board of Directors will subsequently be composed of 12 members.
Rights Issue
As announced on 19 June 2025 and 10 July 2025, a further €672 million equity raise will be undertaken by way of a rights issue (the “Rights Issue”), for which the investors in the Reserved Capital Increase have committed to take up their full rights. In aggregate, Eutelsat has therefore received irrevocable commitment subscriptions representing in excess of 70% of the contemplated Rights Issue.
As previously communicated, subject to market conditions and approval by the AMF of the related Prospectus, Eutelsat intends to execute the contemplated Rights Issue by 2025 year-end.
Part of a comprehensive financing strategy
These two capital increases, forming part of a comprehensive financing strategy alongside a dedicated debt refinancing plan, are aimed at enhancing the Company’s financial flexibility and supporting investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation, while accelerating deleveraging towards its medium-term target of 3x Net debt to EBITDA.
Following the Capital Increases and the disposal of the passive ground segment, expected in H2 FY 2025-26, Eutelsat anticipates a Net Debt / Adjusted EBITDA ratio of c.2.5x[3]at year-end FY 2025-26. As result, the Company should be well placed to tap Debt Capital Markets and raise Export Credit Financing in order to fully cover the financing needs of its medium-term plan.
Financial outlook[4]
Eutelsat confirms its objectives for FY 2025-26[5], targeting revenues in line with, and an adjusted EBITDA margin slightly below, those of FY 2024-25. LEO revenues are expected to grow by 50% year-on-year.
Gross capital expenditure in FY 2025-26 is expected in a range of €1.0 to 1.1 billion.
Eutelsat’s longer-term objectives are also confirmed: Revenues of the four operating verticals between €1.5 and 1.7 billion[6]by the end of FY 2028-29, with LEO revenues significantly outperforming the market. Operating leverage driving a mid-to-high single-digit percentage point improvement in the EBITDA margin[7], resulting in a margin of at least 60% by FY 2028-29. In the longer term (post FY 2028-29), the B2B connectivity market is expected to pursue its growth at a double-digit rate, mostly driven by LEO market expansion.
