New European Space Giant to Emerge from Airbus, Leonardo, and Thales Partnership by 2027

(IN BRIEF) Airbus, Leonardo, and Thales have signed a Memorandum of Understanding to merge their space-related activities into a new European space company designed to strengthen the continent’s industrial and strategic autonomy. The new entity, expected to launch in 2027 pending regulatory approval, will integrate expertise in satellite manufacturing, space systems, and services, excluding launch operations. With around 25,000 employees, a pro forma annual turnover of €6.5 billion, and an order backlog covering over three years, the company will operate under joint ownership — Airbus holding 35%, and Leonardo and Thales each with 32.5%. The partnership aims to foster innovation, improve efficiency, and reinforce Europe’s position as a major player in the global space economy.

(PRESS RELEASE) AMSTERDAM, ROME, PARIS, 23-Oct-2025 — /EuropaWire/ — In a landmark move for Europe’s aerospace and defense industry, Airbus, Leonardo, and Thales have signed a Memorandum of Understanding (MoU) to merge their respective space businesses into a single, integrated European space company. The proposed venture aims to unite Europe’s key capabilities in satellite manufacturing, space systems, and space services, strengthening the continent’s strategic autonomy and competitiveness in the global space market. Subject to regulatory approval, the new company is expected to become operational by 2027.

This initiative represents a major milestone in consolidating Europe’s space ecosystem, creating a robust, innovation-driven entity positioned to compete globally across critical domains such as telecommunications, earth observation, navigation, exploration, and national security. The new company will serve as a trusted partner for both commercial and sovereign space programs, providing comprehensive solutions from infrastructure to services — excluding launch systems.

By combining their expertise and resources, Airbus, Leonardo, and Thales intend to accelerate innovation, improve operational efficiency, and deliver more advanced, cost-effective space solutions. The integration is projected to generate mid triple-digit million euros in annual operating income synergies within five years of closing, supported by efficiencies in engineering, manufacturing, and project management. The merged entity will have an estimated turnover of €6.5 billion and a workforce of around 25,000 employees across Europe, backed by an order backlog representing more than three years of projected sales.

Under the terms of the agreement, Airbus will contribute its Space Systems and Space Digital businesses (from Airbus Defence and Space); Leonardo will provide its Space Division and stakes in Telespazio and Thales Alenia Space; and Thales will bring its shares in Thales Alenia Space, Telespazio, and Thales SESO. Ownership will be shared among the partners — Airbus (35%), Leonardo (32.5%), and Thales (32.5%) — operating under a balanced governance structure ensuring joint control.

The collaboration aims to strengthen Europe’s industrial foundation and global standing in space by:

Fostering innovation and advancing R&D to maintain leadership across all mission domains.
Increasing competitiveness through economies of scale and enhanced efficiency.
Supporting national and European sovereign programs in both civilian and defense applications.
Stabilizing and expanding the European space supply chain to benefit companies of all sizes.
Creating broader career development opportunities within a multinational structure.

In a joint statement, Guillaume Faury (CEO of Airbus), Roberto Cingolani (CEO and General Manager of Leonardo), and Patrice Caine (Chairman & CEO of Thales) said:

“This proposed new company marks a pivotal milestone for Europe’s space industry. It embodies our shared vision to build a stronger and more competitive European presence in an increasingly dynamic global space market. By pooling our talent, resources, expertise, and R&D capabilities, we aim to generate growth, accelerate innovation, and deliver greater value to our customers and stakeholders. This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets, ensuring Europe’s autonomy across the strategic space domain.”

The next phase will involve consultations with employee representatives across all three companies, as required by national and collective labor agreements. Once all approvals are secured, this new company will begin operations in 2027, marking a new era for Europe’s unified leadership in space innovation and strategic independence.

About Airbus

Airbus pioneers sustainable aerospace for a safe and united world. The Company constantly innovates to provide efficient and technologically-advanced solutions in aerospace, defence, and connected services. In commercial aircraft, Airbus designs and manufactures modern and fuel-efficient airliners and associated services. Airbus is also a European leader in space systems, defence and security. In helicopters, Airbus provides efficient civil and military rotorcraft solutions and services worldwide.

About Leonardo

Leonardo is an international industrial group, among the main global companies in Aerospace, Defence, and Security (AD&S). With 60,000 employees worldwide, the company approaches global security through the Helicopters, Electronics, Aeronautics, Cyber & Security and Space sectors, and is a partner on the most important international programmes such as Eurofighter, JSF, NH-90, FREMM, GCAP, and Eurodrone. Leonardo has significant production capabilities in Italy, the UK, Poland, and the USA. Leonardo utilises its subsidiaries, joint ventures, and shareholdings, which include Leonardo DRS (71.6%), MBDA (25%), ATR (50% ), Hensoldt (22.8%), Telespazio (67%), Thales Alenia Space (33%), and Avio (28.7%). Listed on the Milan Stock Exchange (LDO), in 2024 Leonardo recorded new orders for €20.9 billion, with an order book of €44.2 billion and consolidated revenues of €17.8 billion. Included in the MIB ESG index, the company has also been part of the Dow Jones Sustainability Indices (DJSI) since 2010.

About Thales

Thales (Euronext Paris: HO) is a global leader in advanced technologies for the Defence, Aerospace, and Cyber & Digital sectors. Its portfolio of innovative products and services addresses several major challenges: sovereignty, security, sustainability and inclusion. The Group invests more than €4 billion per year in Research & Development in key areas, particularly for critical environments, such as Artificial Intelligence, cybersecurity, quantum and cloud technologies. Thales has more than 83,000 employees in 68 countries. In 2024, the Group generated sales of €20.6 billion.

New European Space Giant to Emerge from Airbus, Leonardo, and Thales Partnership by 2027

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