Eutelsat Stock: A Surge Ahead in 2025 – What Investors Need to Know
- Why Did Eutelsat’s Stock Drop Despite a Successful Rights Issue?
- Who Are the Heavyweights Backing Eutelsat’s Expansion?
- How Does This Strengthen Eutelsat’s Balance Sheet?
- What’s Next for Eutelsat’s Stock and Operations?
- FAQs: Eutelsat’s Rights Issue Unpacked
Eutelsat’s recent €670 million rights issue, oversubscribed by 133%, has sent mixed signals to the market. While strategic investors like the French and UK governments doubled down, the stock dipped 7% on Friday—classic dilution blues. But here’s the twist: fresh capital slashes debt, upgrades ratings, and fuels a €4 billion LEO satellite expansion. Should you buy the dip or steer clear? Let’s break it down.
Why Did Eutelsat’s Stock Drop Despite a Successful Rights Issue?
Eutelsat’s rights issue closed with a whopping 133% oversubscription, raising €670 million at €1.35 per share (8 new shares for every 11 held). Yet, shares tanked 7%—a textbook market reaction to dilution. "It’s like getting a bigger pizza but slicing it into more pieces," quips a BTCC analyst. Strategic investors, however, aren’t flinching: France pledged €749 million, the UK €163 million, and giants like Bharti Space added €150 million each. CEO Jean-François Fallacher called it a "vote of confidence" in Eutelsat’s LEO ambitions.
Who Are the Heavyweights Backing Eutelsat’s Expansion?
The French state (€749M) and UK government (€163M) led the charge, alongside Bharti Space and CMA CGM (€150M apiece). Stratégique de Participations chipped in €91 million. Together, they snapped up 476 million shares (96% of the issue), with another 20 million on a reducible basis. "This isn’t just cash—it’s geopolitical chess," notes a Deutsche Bank report. Lock-up periods bind these players for 180 days, preventing immediate sell-offs.
How Does This Strengthen Eutelsat’s Balance Sheet?
The €1.5 billion financing package (including November’s €828M raise) cuts leverage from 3.9x to 2.5x EBITDA. Moody’s and Fitch cheered, upgrading ratings to "BB" with stable outlooks. Deutsche Bank even flipped its "Sell" to "Hold," citing "short-term balance sheet relief." Funds will primarily repay debt, but the endgame is clear: €4 billion for LEO satellites and the IRIS² constellation by 2029. "They’re betting big on space internet," says a BTCC market strategist.
What’s Next for Eutelsat’s Stock and Operations?
New shares hit Euronext Paris on December 16 and London Stock Exchange on December 17. Guidance for FY2025/26 holds steady: flat revenue, slightly lower EBITDA margins, but 50% growth in LEO. By 2028/29, Eutelsat targets €1.5B–€1.7B revenue with 60%+ margins. "The real test comes in February 2026 with Q2 results," warns an analyst. For now, the stock’s a tug-of-war between dilution fears and strategic optimism.
FAQs: Eutelsat’s Rights Issue Unpacked
Why did Eutelsat’s stock fall after the rights issue?
Market dilution—more shares in circulation temporarily dampen prices. Strategic lock-ups should stabilize it.
Is Eutelsat a good long-term investment?
Depends on your appetite for satellite tech. Debt reduction helps, but LEO execution is key.
When can I trade the new shares?
December 16 (Paris) and December 17 (London).
