Space Supremacy: Airbus, Leonardo and Thales Sign MoU

Our Bureau - : Oct 23, 2025 - : 3:52 pm

In a move set to redefine Europe’s place in the global space industry, Airbus, Leonardo and Thales have signed a Memorandum of Understanding (MoU) to merge their space businesses into a new company that could become operational by 2027. The...

To read the full article, please log in or enter your email below:

The agreement, signed in Amsterdam, Rome and Paris on 23 October, marks one of the most ambitious industrial collaborations in Europe’s aerospace history, aimed squarely at strengthening the continent’s strategic autonomy in space.

Under the plan, the three companies will combine their respective space manufacturing and services divisions to create a single, integrated European player capable of competing with major global rivals, including those from the United States and China.

Building Europe’s answer to global space superpowers

The new entity will consolidate satellite and space systems manufacturing as well as space services under one roof. It is intended to act as a trusted partner for European and national sovereign programmes, spanning key areas such as telecommunications, global navigation, Earth observation, science, exploration and national security.

“This proposed new company marks a pivotal milestone for Europe’s space industry,” the three CEOs — Guillaume Faury of Airbus, Roberto Cingolani of Leonardo and Patrice Caine of Thales — said in a joint statement. “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.”

The project aims to give Europe a unified, resilient and innovative space player with the critical mass to compete globally. It follows growing concerns in Brussels and among member states about Europe’s dependence on foreign satellite systems and the increasing dominance of US-based and Chinese firms in the fast-evolving commercial space sector.

A $7.5 billion space giant in the making

When operational, the combined entity will employ around 25,000 people across Europe, generating annual revenues of roughly $7.5 billion (based on 2024 figures) and holding an order backlog equivalent to more than three years of projected sales.

Airbus will contribute its Space Systems and Space Digital businesses from its Defence and Space division, Leonardo will add its Space Division — including its stakes in Telespazio and Thales Alenia Space — while Thales will bring its holdings in Thales Alenia Space, Telespazio and Thales SESO.

Ownership will be divided with Airbus holding 35% and Leonardo and Thales each holding 32.5%. Governance will be shared equally among the partners, ensuring balanced control and decision-making.

The merger is expected to deliver “mid triple-digit million euro” synergies on operating income within five years of closing. These will be driven by joint research and development, optimised manufacturing, and streamlined project management, all contributing to a more efficient industrial footprint.

Strengthening Europe’s strategic autonomy

At its core, the new space alliance is about more than just efficiency. It represents a calculated step to secure Europe’s sovereign capabilities in an era of increasing geopolitical uncertainty and growing competition in the space economy.

The joint venture aims to build a robust ecosystem that supports both commercial and defence customers, developing secure, resilient and independent European space technologies. It is also expected to play a key role in pan-European programmes related to satellite communications, navigation and climate monitoring, while reinforcing the continent’s defence readiness through advanced space-based intelligence and surveillance systems.

“This partnership aligns with the ambitions of European governments to strengthen their industrial and technological assets,” the three CEOs noted. “It ensures Europe’s autonomy across the strategic space domain and its many applications.”

The deal could also inject new momentum into Europe’s efforts to close the gap with private-sector space leaders like SpaceX and Blue Origin, whose vertically integrated business models have reshaped global space economics.

Unlocking innovation and stability for the European space ecosystem

The new company is designed to act as a catalyst for Europe’s broader space ecosystem, providing stability, predictability and opportunity for suppliers — including small and medium enterprises (SMEs) — across the continent. By uniting research capabilities and consolidating production assets, the group hopes to reduce duplication and create a single innovation platform capable of developing next-generation technologies faster and more efficiently.

It is also expected to help European governments and institutions address their evolving needs in areas such as secure communications, satellite-based intelligence, and climate resilience. With access to shared R&D, employees across all three companies will gain expanded career opportunities and technical exposure in a rapidly growing market.