European satellite communications operator Eutelsat has secured nearly €1 billion in government-backed financing from France to support the expansion of its OneWeb low-Earth-orbit broadband constellation, the company said.
The €975 million agreement, announced on Feb. 11, is backed by the French Export Credit Agency and will fund a recently signed contract with Airbus Defence and Space for 340 additional satellites, complementing 100 spacecraft ordered in December 2024. The financing will be provided by a consortium of commercial banks and guaranteed by the French state, although access to the funds remains contingent on conditions including a bond issuance.
“We are grateful to the French State for its unwavering support,” Chief Executive Jean-François Fallacher said. “This funding significantly strengthens our financial structure and gives us the means to support the deployment of our LEO activities.”
According to a June 2025 investor presentation, Eutelsat plans to deploy the extra satellites to maintain and expand OneWeb services until the European Union’s IRIS2 secure communications system becomes operational in the early 2030s. The company estimates the expansion will cost between €2 billion and €2.2 billion.
Eutelsat is also a core member of the SpaceRISE consortium — alongside SES and Hispasat — selected by the European Commission to develop IRIS2, a €10.6 billion project intended to provide secure connectivity across Europe. The EU is expected to fund 60% of the program, with industry partners contributing the remainder, including a €2 billion commitment from Eutelsat. Combined with its OneWeb expansion, the company’s planned spending exceeds €4 billion.
The new financing follows a €1.5 billion capital increase completed in late 2025 with support from French and British government investors. Eutelsat said the funds will help accelerate constellation deployment, support IRIS2 participation, and address its debt profile.
As of June 2025, the company reported net debt slightly above €2.6 billion, with a net debt-to-EBITDA ratio of 3.88 times. Analysts note that while the financing strengthens liquidity, it could also increase borrowings depending on how the funds are used.
Eutelsat’s expansion comes amid intensifying competition in the satellite broadband market. SpaceX’s Starlink network has attracted millions of users worldwide, while Amazon is advancing its Project Kuiper constellation, with additional satellites scheduled for launch aboard an Ariane 64 rocket.
Industry observers say Eutelsat’s ability to scale OneWeb while managing debt and contributing to IRIS2 will be critical not only for its commercial prospects but also for Europe’s ambition to maintain independent, secure satellite communications capabilities.
