Airbus, Leonardo, Thales join forces to create major European space company

Airbus, Leonardo, and Thales announced their plan to combine their space activities into a single new company. The move formalised through a Memorandum of Understanding (MoU), aims to create a significant European player in the global space market.

The proposed entity will combine the three companies' work in satellite and space systems manufacturing and space services. Its primary goals include strengthening Europe's strategic autonomy in space, increasing competitiveness, and supporting future sovereign space programs.

The combined company expects to begin operations in 2027, pending regulatory approvals and other closing conditions.

Airbus, Leonardo and Thales sign Memorandum of Understanding (MoU) to create a leading European player in space by combining their respective activities in satellite & space systems manufacturing and services.

This project aims to strengthen Europe’s strategic autonomy in… pic.twitter.com/mJ09NWiqWQ

— Airbus Newsroom (@AirbusPRESS) October 23, 2025

Strategic Combination

The three industry players will pool their complementary technologies and end-to-end solutions, excluding space launchers. This portfolio will range from space infrastructure to services.

The new structure aims to accelerate the development of new space products and services. The companies expect the combination to generate mid-triple digit million euro in total annual synergies on operating income within five years of closing. They also project increased revenues by offering a more competitive, expanded portfolio of products and services globally.

The contribution breakdown to the new company is:

• Airbus will contribute its Space Systems and Space Digital businesses from Airbus Defence and Space.

• Leonardo will contribute its Space Division, including its shares in Telespazio and Thales Alenia Space.

• Thales will contribute its shares in Thales Alenia Space, Telespazio, and Thales SESO.

Scale and Ownership

The combined entity will employ approximately 25,000 people across Europe. Based on 2024 pro-forma figures, the company will have an annual turnover of about EUR 6.5 billion and a backlog of orders representing over three years of projected sales.

Ownership of the new company will be shared among the parent companies: Airbus will hold a 35% stake, while Leonardo and Thales will each hold 32.5%. The company will operate under joint control with a balanced governance structure.

European Autonomy and Global Reach

The project seeks to enhance Europe's position in the international space market by achieving critical mass. The unified company will concentrate joint Research and Development (R&D) efforts to advance space missions and operational processes, benefiting from increased scale.

Here, by creating a stable and predictable industrial environment, the new entity intends to amplify opportunities for European suppliers. It will also focus on leading programs to meet European sovereign and military requirements, providing integrated solutions for infrastructure and services in all major space domains.

Guillaume Faury, CEO of Airbus, Roberto Cingolani, CEO and General Manager of Leonardo, and Patrice Caine, Chairman & CEO of Thales, issued a joint statement. They affirmed the project marks a significant step for Europe’s space industry, stating that pooling resources and expertise will drive growth and deliver value while supporting European governments' ambitions for industrial and technological autonomy in the space sector.