Eutelsat Secures Next-Generation Satellite Fleet with Major Airbus Order

Eutelsat has taken a decisive step in solidifying the future of its low Earth orbit (LEO) satellite network. The company has placed a firm order with Airbus Defence and Space for the manufacture of 340 additional OneWeb satellites. This substantial contract, announced on January 12, 2026, is fundamentally designed to ensure the uninterrupted service of the constellation as its first-generation satellites approach their operational end-of-life starting in 2027/2028.

Key Details of the Expansion:
* Latest Contract: 340 OneWeb satellites awarded to Airbus.
* Total Program Scale: 440 satellites, inclusive of a prior 100-satellite order from December 2024.
* Production & Delivery: Manufacturing will occur on a newly installed assembly line at Airbus's facility in Toulouse, with initial deliveries slated to commence by the end of 2026.
* Investment Framework: Eutelsat has allocated between €2.0 and €2.2 billion for this expansion program spanning the years 2024 to 2029.
* Funding Structure: The initiative is backed by a €1.5 billion capital increase finalized in 2025, supplemented by a successful €670 million rights issue completed in December 2025.

This latest procurement elevates the total satellite order book to 440 units. While significant, the core objective of this multi-billion euro program is not aggressive growth but rather strategic continuity. The primary driver is the planned systematic replacement of the existing fleet before its technical obsolescence.

The necessity for this renewal is clear. A majority of the first-generation OneWeb satellites were launched between 2020 and 2023 and are projected to reach the end of their designed service life in 2027 and 2028. The new satellites will incorporate several technological enhancements to secure long-term performance, including:
* Advanced digital channelizers for increased on-board processing capability.
* An optimized architectural design aimed at sustaining operational efficiency.
* Support for Hosted Payloads, which will enable additional mission functionalities.

Should investors sell immediately? Or is it worth buying Eutelsat?

Financial Backing and Operational Performance

The capital required for this ambitious project is already in place. The €1.5 billion capital increase in 2025 saw participation from the French and British governments alongside strategic partners Bharti, CMA CGM, and FSP. This was followed by the €670 million rights issue before the year's end.

Operationally, Eutelsat's recent financial disclosures provide context. In its Q1 2025/26 results (released October 21, 2025), the company reported a 70.7% year-on-year surge in LEO-specific revenue. The consolidated revenue from its four operating segments totaled €283 million, representing a modest decline of 1.2% on a like-for-like basis. Management reaffirmed its full-year guidance for 2025/26, anticipating LEO revenue growth of approximately 50%, stable segment revenue, and total capital expenditures between €1.0 and €1.1 billion.

With the production timeline now set, focus shifts to the end of 2026. The initiation of deliveries from Toulouse will mark the beginning of the next wave of satellites, laying the foundational hardware for the seamless renewal of the OneWeb constellation.