Eutelsat: A Strategic Bet on European Space Sovereignty Gains Momentum

The European Union’s ambitious space infrastructure program, IRIS², has taken a significant step forward with the recent accession of Norway and Iceland. On March 26, both nations signed agreements to join the GOVSATCOM initiative and the IRIS² framework. For satellite operator Eutelsat, this geopolitical development is a direct commercial opportunity, positioning the company at the heart of a burgeoning government and institutional market.

A Consortium at the Core

IRIS² is a €10.6 billion project jointly financed by the EU, the European Space Agency, and private investors. Its goal is to deploy a multi-orbit constellation of approximately 290 satellites, with initial governmental services expected to be operational by 2030. The consortium responsible for the system’s development, operation, and provision is SpaceRISE, where Eutelsat holds a core membership alongside SES and Hispasat, supported by eight subcontractors.

The inclusion of Norway and Iceland—both members of the European Economic Area but not full EU members—demonstrates the program’s expanding reach beyond the bloc's borders. These countries intend to leverage the future infrastructure for secure governmental communications, crisis management, and disaster relief operations.

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

OneWeb: The Operational Backbone

A critical asset in this strategy is Eutelsat’s ownership of OneWeb, currently the only fully operational low-Earth orbit (LEO) network under European control. Company leadership, including CEO Jean-François Fallacher, has emphasized this as a distinct competitive advantage. For government clients seeking to avoid reliance on U.S. providers, it presents the sole European alternative.

Recent financial results underscore this segment's growth trajectory. In the first half of the 2025/26 fiscal year, OneWeb-related revenues surged by 60%. Furthermore, non-video revenues, which include government and enterprise services, now constitute 54% of Eutelsat’s total turnover.

On the manufacturing side, the supply chain is actively scaling. Airbus Defence and Space has a contract to build an additional 340 OneWeb satellites in Toulouse. Combined with a prior order for 100 units, this brings the total number of satellites on order to 440, with initial deliveries scheduled from late 2026. Funding is structured in phases: a first €2 billion tranche maintains the existing constellation, while a second €2 billion tranche is earmarked from 2028/29 onwards to support the IRIS² integration.

The accession of new partner nations solidifies a foundational user base that Eutelsat, as a key IRIS² contractor, is poised to serve long-term. It also signals the program's growing political substance, even as its full deployment unfolds over a extended timeline.

Ad

Eutelsat Stock: New Analysis - 30 March

Fresh Eutelsat information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Eutelsat analysis...

FR0010221234 | EUTELSAT | boerse | 69027276 |