Key Issues
- Political Control : French government dominates management decisions, e.g. recent CEO appointment, and leads to a reliance on government contracts (~20% of revenue) and subsidies, including a new €1.5B capital injection by France. We see risks of cronyism and operational friction and doubt long term commercial viability.
- Technological and Competitive Lag: Eutelsat’s LEO network (~600 satellites) is far behind Starlink (~7,000) and future competitors like Amazon’s Kuiper; service costs are 10–20x higher than Starlink.
- Financial Fragility: Net debt €3.0B, operating losses (€790M H1 2025), significant goodwill impairment (€535M) and refinancing needs in 2026–2027 highlight unsustainable capital structure.
- Controversial Operations: Ongoing broadcast of sanctioned Russian and Hamas channels shows regulatory/compliance risks and reputational exposure.
Investor Takeaways
- Stock appears overvalued at €3.75; Goldman Sachs target of €1 considered more realistic.
- Political support may temporarily stabilize operations, but underlying tech and financial gaps make long-term growth uncertain.
- Reliance on government funding and subsidies introduces risk if political priorities shift.
- Competitively, Eutelsat cannot match Starlink or Kuiper on cost or coverage; commercial adoption is limited.

