Airbus, Leonardo and Thales have signed a memorandum of understanding (MoU) aimed at combining their respective space activities to create a leading European player in the space domain, the three companies announced on 23 October 2025.
The new company, which could be operational in 2027 following regulatory clearances, will employ around 25,000 people across Europe and is expected to have an annual turnover of about EUR 6.5 billion. It combines Airbus’ Space Systems and Space Digital businesses, Leonardo’s Space Division, including its shares in Telespazio and Thales Alenia Space, while Thales will contribute with its shares in Thales Alenia Space, Telespazio and optics specialist Thales SESO.
Ownership of the new company will be shared among the parent companies, with Airbus, Leonardo and Thales owning 35%, 32.5% and 32.5% stakes respectively. It will operate under joint control, with a balanced governance structure among shareholders.
“By joining forces, Airbus, Leonardo and Thales aim to strengthen Europe’s strategic autonomy in space: a major sector that underpins critical infrastructure and services related to telecommunications, global navigation, Earth observation, science, exploration and national security,” the three companies stated in a joint press release. “This new company also intends to serve as the trusted partner for developing and implementing national sovereign space programmes.”
The new company – the name of which has not yet been determined – is intended to pool, build and develop a comprehensive portfolio of complementary technologies and end-to-end solutions, from space infrastructure to services (excluding space launchers). The plan is to jointly accelerate innovation in the strategic space market in order to create a unified, integrated and resilient European space player with the critical mass to compete globally and grow its export market.
“The project is expected to unlock incremental revenues, leveraging an expanded portfolio of end-to-end products and services leading to a more competitive offering, and greater global commercial reach,” the companies stated. “The combined capabilities also pave the way for even more innovative new programmes to enlarge the new company’s market positioning. Further operational synergies in, among others, engineering, manufacturing and project management, are anticipated to drive long-term efficiency and value creation.”
The key aims of the new company are as follows:
- To foster innovation and technological progress by harnessing joint research and development (R&D) capabilities to be at the cutting edge of space-based capabilities;
- To increase competitiveness facing global players, reaching critical mass and ensuring Europe secures its role as a major player in the international space market;
- To lead innovative programmes that address evolving customer and European needs, including national sovereign and military programmes;
- To strengthen the European space ecosystem by bringing more stability and predictability to the industrial landscape, amplifying opportunities for the benefit of European suppliers of all sizes;
- And to create new opportunities for employee development through broader technical capabilities and a more extensive multi-national footprint.
In a joint statement Airbus CEO Guillaume Faury, Leonardo CEO and General Manager Roberto Cingolani and Thales Chairman & CEO Patrice Caine declared, “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.”
