Will IRIS2 save or doom Eutelsat?

Credit: Eutelsat

After reporting its H1 2024 earnings on 14 February, Eutelsat’s stock price fell by 11% in one day to around €1.40. Over the course of the next week, it declined by a combined 24%, with the stock trading at around €1.31 by 18 February. This is a dramatic collapse from around €2.20 a month ago and approximately €4.60 six months ago, representing a total 70% slide in just half a year.

While the sharp decline in its share price is the most obvious sign of trouble, it’s far from the only one. Analysts have pointed to the dilutive merger with OneWeb, the abrupt departure of four board directors and the Chairman, the suspension of the dividend, and uncertainty over how Eutelsat will finance its ambitious future. A Goldman Sachs report from 24 February paints an especially grim picture.

The investment bank downgraded Eutelsat from Neutral to Sell, slashing its price target to just €1. Worse still, it cited “competitive pressures, an increasing debt load of $3.47 billion, and ex…