French Government Veto Halts Eutelsat’s Strategic Asset Sale

In a decisive move that prioritizes national security over corporate strategy, the French state has unexpectedly blocked the sale of Eutelsat's ground infrastructure assets. This intervention leaves the satellite operator without an anticipated €550 million in near-term proceeds. The decision raises immediate questions about the Starlink competitor's debt profile and its long-term strategic direction.

The transaction, which would have seen the ground segment assets sold to financial investor EQT Infrastructure VI, has been formally terminated. Eutelsat confirmed the deal's collapse was due to a failure to obtain the necessary regulatory approvals. The rationale is squarely political: French Finance Minister Roland Lescure intervened on national security grounds. Paris classified the infrastructure, which supports both civilian and military communications, as a strategic asset that is not for sale. This assessment is heavily influenced by Eutelsat's position as Europe's primary contender against Elon Musk's Starlink in the satellite broadband arena.

The government's authority to make this call is significant. Following a major investment round in November 2025, the French state holds a stake of nearly 30% in the company.

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

Financial Repercussions and Revised Forecasts

The failed sale forces a revision of the company's financial planning. The €550 million was originally earmarked to strengthen the balance sheet. With these funds now off the table, Eutelsat has adjusted its key debt and profitability metrics:

• Increased Leverage: The ratio of net debt to EBITDA is now projected to reach approximately 2.7x by the close of the 2025/26 fiscal year, up from a previous forecast of 2.5x.
• Improved Margin Outlook: By retaining ownership of the infrastructure, Eutelsat will avoid future lease payments that would have been due to the investor. Consequently, the company has raised its EBITDA margin forecast for the 2028/29 fiscal year to around 65%, compared to an earlier projection of 60%.

Company leadership has stressed that funding for its planned growth investments remains secure despite the transaction's failure. This growth trajectory is supported by a contract awarded to Airbus in mid-January to construct 340 new satellites for the OneWeb network.

Investors will gain a clearer picture of the operational performance next week. On February 13, 2026, Eutelsat is scheduled to release its detailed first-half results, which will reveal how effectively the core business can manage the elevated debt burden.