Airbus, Leonardo, and Thales have signed a Memorandum of Understanding (MoU) to combine their respective space activities into a single joint venture aimed at strengthening Europe’s strategic autonomy in space.
The proposed entity, which is expected to be operational in 2027 following regulatory clearance, will form one of Europe’s largest space companies, employing around 25,000 people across the continent. With a projected annual turnover of €6.5 billion and an order backlog exceeding three years of sales, the new organisation will be positioned as a key global competitor in the fast-evolving space sector.
Under the terms of the agreement, ownership of the new company will be divided among Airbus (35%), Leonardo (32.5%), and Thales (32.5%). It will operate under joint control, with a balanced governance structure ensuring equal participation from each partner.
Combining Europe’s space strengths
The new company will consolidate a comprehensive portfolio of complementary technologies and services, covering space infrastructure and applications but excluding launch activities. By bringing together the three firms’ respective expertise, it aims to deliver end-to-end solutions across telecommunications, global navigation, Earth observation, science, exploration, and national security.
Airbus will contribute its Space Systems and Space Digital businesses, both part of Airbus Defence and Space. Leonardo will add its Space Division, including its stakes in Telespazio and Thales Alenia Space. Thales will mainly contribute its shares in Thales Alenia Space, Telespazio, and Thales SESO.
The combined business will also seek to foster innovation by pooling research and development (R&D) capabilities, strengthening investment in next-generation space products and services, and streamlining manufacturing and engineering operations. The companies anticipate mid triple-digit million euro annual synergies in operating income within five years of closing, with associated integration costs expected to align with industry benchmarks.
Driving European strategic autonomy
The partners said the collaboration aims to reinforce Europe’s role in the global space market by providing the scale, efficiency, and technological edge needed to compete internationally. Beyond commercial competitiveness, the new entity will serve as a trusted partner for national and European sovereign space programmes, ensuring greater independence in strategic space capabilities.
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, commented: “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 and its many applications. It offers employees the opportunity to be at the heart of this ambitious initiative, while benefiting from enhanced career prospects and the collective strength of the three industry leaders.”
A foundation for growth and innovation
The partnership is expected to unlock new revenue opportunities by leveraging an expanded portfolio of integrated solutions, while fostering long-term value creation through operational synergies in engineering, project management, and manufacturing.
Beyond financial performance, the venture will aim to bring stability and predictability to Europe’s space ecosystem, benefitting suppliers of all sizes. It will also create new professional development opportunities for employees across its multinational footprint, broadening technical expertise and career prospects.
