EUTELSAT COMMUNIC. Shares Drop 13.1% Over the Week, Impacted by Capital Deployment
Eutelsat shares experienced a significant decline this week, dropping 13.1% to close at €2.18 on Friday. This downward movement contrasts with the progress shown by the main French indices, with the CAC 40 and the SBF 120 gaining 1.78% and 1.87% respectively over the same period. The weakness in the stock is part of a context of significant capital restructuring movements within the satellite telecommunications group.
Key Stages of Fundraising Program Mark the Week
The week was marked by several key stages of the group's fundraising program. On November 25, Eutelsat launched a capital increase with preferential subscription rights of approximately €670 million. This operation follows the completion, on November 21, of reserved capital increases approved by the general meeting on September 30, 2025, amounting to €828 million and representing a dilution of 30%. These two fundraisings are part of a global plan of €1.5 billion aimed at strengthening the group's financial structure and financing its development program. The share price, which was quoted at €3.225 on November 21 according to the reference closing price, gradually declined over the week. On Wednesday, November 26, the stock recorded a drop of 4.29%, the day the preferential subscription rights were detached and their trading period began.
Fundraising Plan Accompanied by an Ambitious Strategic Project
The fundraising plan is accompanied by an ambitious strategic project. Presented in June 2025, this roadmap aims to accelerate the deployment of low-orbit satellite activities and support the future IRIS 2 constellation, while enhancing financial flexibility through accelerated debt reduction. The total capital raised, combined with a refinancing plan including bond financing and export credits, should enable the group to finance its investments of approximately €4 billion between 2026 and 2029, with a goal of bringing the leverage ratio to around 2.5x by the end of the 2025-26 fiscal year. Alongside these equity raises, the group has initiated the refinancing of its bank and bond debt, with a gradual redirection of issuances towards the level of the subsidiary Eutelsat Communications SA.
