Airbus, Leonardo and Thales have signed a Memorandum of Understanding to combine their space activities into a single European entity — a move set to reshape the continent’s industrial position in satellite manufacturing and space systems.
The proposed company will consolidate the trio’s respective operations in satellite and space systems manufacturing, digital space services, and supporting technologies. Airbus will contribute its Space Systems and Space Digital units, while Leonardo and Thales will transfer their stakes in Thales Alenia Space and Telespazio, alongside Leonardo’s Space Division and Thales SESO.
Once formed, the business will employ roughly 25,000 people across Europe, with a combined annual turnover of around €6.5 billion and a backlog exceeding three years of projected sales. Ownership will be split 35% for Airbus and 32.5% each for Leonardo and Thales, operating under joint control with a balanced governance model.
According to the companies, the venture aims to strengthen Europe’s strategic autonomy in space by consolidating critical infrastructure and services in telecommunications, earth observation, navigation, science, and defence. The new structure would act as a “trusted partner” for national sovereign space programmes, offering integrated end-to-end solutions excluding launchers.
Projected synergies are described as “mid triple-digit million euros” annually within five years of closing, with associated integration costs said to be in line with sector benchmarks. The deal’s architects expect efficiency gains in engineering, manufacturing, and project management, alongside expanded innovation capacity through pooled R&D.
In a joint statement, Guillaume Faury, CEO of Airbus; Roberto Cingolani, CEO and General Manager of Leonardo; and Patrice Caine, Chairman and CEO of Thales, said the move “marks a pivotal milestone for Europe’s space industry” and aims to “build a stronger and more competitive European presence in an increasingly dynamic global space market.”
The partners argue that consolidation is essential if Europe is to maintain competitiveness with the United States and China, where vertically integrated players already command scale advantages in commercial and government space contracts. By merging resources, the group seeks to counter fragmentation in the European supply chain and deliver greater predictability for smaller suppliers.
Employee consultations will now proceed across all three parent companies in line with national and EU labour regulations. Subject to those discussions and regulatory clearance, the new company is expected to be operational in 2027.
