Airbus, Leonardo, and Thales have signed a Memorandum of Understanding to combine their space activities into a new company, aiming to strengthen Europe’s position in the global space market. The agreement was announced on October 23, 2025, by the three companies.
The proposed entity will bring together Airbus’ Space Systems and Space Digital businesses, Leonardo’s Space Division—including its shares in Telespazio and Thales Alenia Space—and Thales’ shares in Thales Alenia Space, Telespazio, and Thales SESO. The combined company is expected to employ around 25,000 people across Europe and generate an annual turnover of approximately €6.5 billion based on end-of-2024 pro-forma figures. Its order backlog represents more than three years of projected sales.
Ownership of the new venture will be split among the parent companies: Airbus will hold 35%, while Leonardo and Thales will each have a 32.5% stake. The governance structure will be balanced among shareholders under joint control.
The companies expect that combining their assets will result in significant operational synergies, with anticipated mid triple-digit million euro improvements in annual operating income five years after closing. Associated costs for achieving these synergies are expected to align with industry benchmarks.
According to the joint statement from Guillaume Faury (Chief Executive Officer of Airbus), Roberto Cingolani (Chief Executive Officer and General Manager of Leonardo), and Patrice Caine (Chairman & Chief Executive Officer of Thales): “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.”
The new company aims to enhance Europe’s strategic autonomy in critical areas such as telecommunications, navigation, earth observation, science, exploration, and national security by offering integrated solutions for infrastructure and services across all major space domains—excluding launchers.
Plans include leveraging joint research and development capabilities to foster innovation in future space products and services while increasing competitiveness against global players through economies of scale.
The project remains subject to regulatory approvals and other customary closing conditions. If approved as planned, operations could begin in 2027.
Employee representatives from all three firms will be informed about the project according to applicable laws in each country involved.
Airbus is recognized as a leader in aerospace innovation across commercial aircraft manufacturing as well as defence and security sectors. Leonardo is one of the world’s main aerospace firms with production facilities spanning several countries including Italy, UK, Poland, and USA; it reported consolidated revenues of €17.8 billion in 2024. Thales operates globally with over 83,000 employees focused on advanced technologies for defence, aerospace, cyber security—and invested over €4 billion annually into research & development as of 2024.
