The French satellite operator Eutelsat has been compelled to adjust its financial roadmap after a key divestment plan was halted by national authorities. This development impacts its debt reduction strategy, even as the company announces a significant new commercial agreement in the maritime sector. Investors are now looking ahead to the interim results scheduled for release on February 13.
Operational Momentum: A Major Maritime Deal
On the commercial front, Eutelsat has secured a new, multi-year partnership with the CMA CGM Group and Marlink. The agreement focuses on equipping the global fleet of shipping giant CMA CGM with connectivity services via the OneWeb low-Earth orbit (LEO) satellite network.
The concrete plan is to outfit more than 300 CMA CGM vessels within the next nine months. The services will leverage LEO satellites to deliver high-speed connectivity with low latency, enhancing operational communications for the maritime industry.
French Veto Disrupts Debt Reduction Strategy
The primary catalyst for the financial revision is the French government’s intervention. Authorities have exercised a veto to block the proposed sale of Eutelsat’s passive ground infrastructure assets to the financial investor EQT. The Ministry of Finance cited national security interests as the reason, noting the strategic importance of the antenna infrastructure for both civilian and military communications.
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The financial implication for Eutelsat is direct and substantial: the anticipated net proceeds of approximately €550 million, which were earmarked for reducing leverage, will now not materialize.
Updated Financial Targets: Higher Leverage, Improved Margin View
In response, Eutelsat has formally updated its key financial targets. For the 2025/26 fiscal year, the company now expects its net debt-to-EBITDA ratio to reach around 2.7, up from the previous target of 2.5.
Paradoxically, the collapsed deal also brings a compensatory financial benefit. The planned annual leasing costs of €75–80 million associated with the infrastructure are now eliminated. This is a contributing factor behind the company’s decision to raise its projected EBITDA margin for 2028/29 to approximately 65%.
Focus Shifts to Upcoming Interim Report
Market attention will now turn to Eutelsat’s forthcoming first-half results for 2025/26, due for publication on February 13. This report is anticipated to provide crucial insights into the company’s operational performance and offer a clearer picture of the ongoing integration of OneWeb.
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