Eutelsat's Strategic Overhaul Fails to Impress as Shares Tumble 50% From Peak
Veröffentlicht: 30.06.2026 um 16:37 Uhr, Redaktion boerse-global.de
Eutelsat's stock has been cut in half since late May, and a series of positive corporate developments — from a €1.5 billion bond reorganisation to a prestigious industry reappointment — have done nothing to halt the slide. The satellite operator now trades at 2.31 euros, a dramatic retreat from the 4.62-euro 52-week high reached just weeks ago. The sell-off accelerated over the past month, with the shares shedding more than 40% of their value.
The market's punishment masks a deeply split business. Connectivity revenues surged 15% year-on-year, propelled by a 65% jump in low-earth orbit (LEO) solutions. But the legacy video division continues to haemorrhage, with income falling 13.3%. Sanctions against Russian broadcasters cost the group roughly 16 million euros annually, and several satellite contracts have been terminated, compounding the drag.
Management has moved to shore up the balance sheet, recently placing bonds worth €1.5 billion that complete a debt restructuring. The company is targeting a leverage ratio of 2.7 times by the close of the financial year. Capital expenditure, however, remains voracious: €4 billion is pencilled in through 2029, half of which will go toward the second generation of OneWeb satellites. Analysts strike a cautious tone, pointing to the intense competitive pressure from Starlink.
Should investors sell immediately? Or is it worth buying Eutelsat?
On the governance front, Vincent Grivet was reappointed chair of the HbbTV Association for another two years after the newly constituted steering committee confirmed him on June 26. The 15-member board also retained Jon Piesing of TP Vision as vice-chair and Xavi Redon of Cellnex Telecom as treasurer, while welcoming newcomer Vestel to its first seat. Grivet spoke of "real change with strong continuity," outlining plans to finalise the HbbTV 2.0.6 specification, expand the all-IP and HbbTV 3.0 roadmap, deepen ties with DVB-I and boost the organisation's presence outside Europe. For Eutelsat's stock, however, such industry credentials have provided no floor.
Technicals paint a bleak picture. The relative strength index sits at 35.5, signalling oversold territory without any hint of a bounce. The 200-day moving average of 2.62 euros now lies above the current price, a bearish configuration. Annualised 30-day volatility has soared past 100%, underscoring the deep nervousness surrounding the name. If the trend persists, the 52-week low of 1.59 euros is squarely in view.
A ten-year contract with the French military, code-named CENTAURE, is set to start generating revenue from mid-2026, offering a predictable earnings stream. The group's order book already stands at 3.4 billion euros. But the big test comes in the next few weeks, when Eutelsat reports final results for the 2025/26 financial year. Management will have to convince a sceptical market that LEO growth can cover the enormous outlays required to build out the constellation.
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