Eutelsat's Ambitious LEO Expansion: A Strategic Move with Airbus

Eutelsat, a global leader in satellite communications, has recently announced a strategic partnership with Airbus Defence and Space to expand its low Earth orbit (LEO) constellation. The contract, valued at €10.6 billion, involves the procurement of 100 satellites, with deliveries expected to commence by the end of 2026. This significant investment aligns with Eutelsat's long-term strategy and financial framework, positioning the company at the forefront of the growing demand for LEO capacity.

The new satellites, manufactured by Airbus, will incorporate key technology upgrades, including 5G on-ground integration. This integration will enhance Eutelsat's service capabilities, enabling faster, more reliable connectivity, and supporting the growing demand for IoT and other data-intensive applications. The new satellites will also be technologically compatible with Europe's planned IRIS2 constellation, paving the way for its entry into operational service in 2030. Eutelsat will be the main architect and operator of the LEO segment, further solidifying its position in the market.

Eutelsat's contract with Airbus is fully compatible with its FY 2025 Capital Expenditure guidance and longer-term financial framework. The company anticipates generating revenues of at least €6.5 billion from anchor EU customers and the global distribution of its LEO capacity to commercial customers. Eutelsat's investment of around €2 billion, back-end loaded to later stages of the project, is clearly capped and fully aligned with its financial projections.

The procurement of these 100 satellites is a strategic move for Eutelsat, as it aligns with the company's long-term vision to expand its low Earth orbit capacities and complement its existing GEO constellation. The new satellites will ensure continuity and enhancement of service for current and future customers, while also reinforcing Eutelsat's position in the market.



Eutelsat's involvement in the IRIS2 constellation, as part of the SpaceRISE consortium, is another key step in its strategy to develop and expand its low Earth orbit capacities. The project, valued at €10.6 billion, will see Eutelsat act as the consortium system development prime, leveraging its unique LEO expertise and priority spectrum rights in the Ku band to lead on the design of the LEO segment of the constellation. This public-private partnership model will unlock economies of scale and de-risk the project through anchor sovereign customer commitment.

In conclusion, Eutelsat's contract with Airbus for 100 satellites is a strategic move that aligns with the company's long-term vision and customer needs. The new satellites will enhance service capabilities, be technologically compatible with the planned IRIS2 constellation, and generate significant revenue streams. This investment is fully compatible with Eutelsat's financial framework and demonstrates the company's commitment to expanding its low Earth orbit capacities and reinforcing its position in the market. As the demand for LEO capacity continues to grow, Eutelsat's strategic partnership with Airbus positions the company well to capitalize on this opportunity.