Eutelsat Shares: A Glimmer of Operational Progress?

Eutelsat shares concluded 2025 at €1.71, a figure representing a mere fraction of the year's high of €9.30. This dramatic decline was precipitated largely by a substantial €1.5 billion capital raise in the fourth quarter, executed to fund the integration of OneWeb and reduce debt. The dilution hit existing shareholders hard. Now, the central question for the satellite operator is whether it can deliver on its operational promises. A recently announced partnership in Africa offers preliminary clues.

The share price trajectory tells a stark story. After reaching a 52-week peak of €9.30, the equity plunged to a low of €1.15. While the year-end closing price of €1.71 indicates a degree of stabilization, the scale of the collapse remains profound. In December, Deutsche Bank cautiously shifted its rating from "Sell" to "Hold," but this did little to alter the market's sentiment. Analysts reasoned that while acute financial pressure had eased, the management team must now demonstrate that the significant investment into OneWeb can become profitable.

African Deal Provides First Practical Validation for OneWeb

With markets closed for New Year's Day, Eutelsat announced a collaboration with Airtel Gabon. The partnership's focus is to deliver high-speed internet connectivity to passenger trains using the low Earth orbit (LEO) satellite constellation from OneWeb.

Key details of the agreement include:
* Successful completion of LEO technology testing.
* Commencement of the rollout for train connectivity services.
* The first concrete B2B application for OneWeb's technology on the African continent.
* Validation of the technology for mobility solutions in emerging markets.

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

The significance lies in the timing: following its costly integration, OneWeb is now yielding its first tangible, practical evidence of commercial utility. Philippe Baudrier, Eutelsat's Vice President for Africa, highlighted the project's importance for the region's digital infrastructure. For investors, this serves as an initial signal that the underlying technology is operational and commercially viable.

A Foundation for Recovery or a Temporary Pause?

The Airtel Gabon contract alone is too limited in scope to propel the share price back to its former heights. The critical factor will be whether this deal heralds a series of similar contracts and if the anticipated synergies from the OneWeb acquisition genuinely enhance operational margins.

The coming weeks will reveal if the stabilization around the €1.70 level can be sustained. The stock remains highly speculative—a potential turnaround story where investors are betting on the successful operational execution of the company's strategy. While initial positive signals have emerged, the true test will come with the release of the first-quarter financial results for 2026.