Airbus, Leonardo, and Thales Join Forces to Create a European Space Industry Player
Airbus, Leonardo, and Thales have announced the signing of a memorandum of understanding to consolidate their space activities into a new European entity, expected to be operational in 2027, subject to necessary approvals.
Formation of a Joint Venture for Space Activities
According to the press release published on October 23, 2025, Airbus, Leonardo, and Thales have signed a memorandum of understanding to establish a joint venture dedicated to the production of satellites, space systems, and related services. The primary goal is to enhance European strategic autonomy in the space sector, which includes critical infrastructure for telecommunications, global navigation, Earth observation, science, exploration, and national security. The merger excludes launcher activities but aims to combine a broad portfolio of complementary technologies and integrated solutions across the entire space chain, except for launch services. The new company would be owned 35% by Airbus, 32.5% by Leonardo, and 32.5% by Thales, with each parent company exercising joint control in a balanced governance structure. The merged entity would bring together about 25,000 employees across Europe.
Financial Projections and Contributions
The press release states that the future company, based on pro forma figures for 2024, would show an annual turnover of approximately 6.5 billion euros and have an order book worth more than three years of projected sales. The operation is expected to generate several hundred million euros per year in operating synergies (in operating result) within five years after completion, with costs considered in line with industry standards. Airbus would contribute its Space Systems and Space Digital activities from Airbus Defence and Space, Leonardo its space division including its stakes in Telespazio and Thales Alenia Space, while Thales would contribute mainly through its shares in Thales Alenia Space, Telespazio, and Thales SESO.
Strategic Goals and Operational Efficiency
The new company aims to pool investments in research and development to foster innovation across all segments of space and improve operational efficiency, notably through economies of scale and optimization of industrial processes. The project seeks to enhance European competitiveness against other major global players in the sector and become a key partner for the implementation of sovereign space programs. Employee representatives from the three groups will be consulted in accordance with national regulations and collective agreements. The completion of the transaction remains subject to regulatory approvals and is expected to enable the new entity to commence operations in 2027.
