Strategic Alliance: Airbus, Leonardo, and Thales Join Forces in European Space Initiative

Amsterdam, Rome, Paris – 23 October 2025 – Aerospace giants Airbus, Leonardo, and Thales have formalized a strategic partnership through a Memorandum of Understanding (MoU) that will see the integration of their space-related endeavors into a newly formed entity. This collaboration represents a significant step towards fortifying Europe’s autonomous capabilities in the increasingly competitive global space sector.

Implications for European Strategic Autonomy

The combined efforts of these industry leaders are set to enhance Europe’s strategic independence in space—a domain critical for supporting essential telecommunications infrastructure, global navigation systems, Earth observation capabilities, scientific exploration, and national defense operations. By forming this new entity, the companies aim to emerge as a reliable partner in the development of sovereign space programs across member nations.

Alignment with National Objectives

The initiative aligns with European governmental aspirations to bolster industrial and technological resources in space, ensuring a secure and self-reliant strategic footprint. The new company is poised to not only enhance market competitiveness but also support military and national defense objectives, making significant contributions to Europe’s security landscape.

A Comprehensive Technological Ecosystem

The new organization will focus on crafting a robust portfolio of complementary technologies and comprehensive solutions, spanning various aspects of space operations, from infrastructure to a range of services (excluding launch vehicles). This integration is expected to catalyze innovation within the industry, fostering a cohesive, resilient European contender capable of expanding its global market share.

Strategic Focus Areas:

• Innovation Acceleration: By leveraging combined research and development (R&D) capabilities, the entity aims to advance cutting-edge space mission technologies and enhance operational efficiencies.

• Market Competitiveness: The collaboration is designed to achieve a critical mass that will enable the companies to effectively counter global competitors and establish a formidable position within the international space market.

• Customer-Centric Program Development: The new company will address diverse and evolving client needs, including military programs and integrated infrastructure solutions, reflecting a commitment to serving national sovereignty and security requirements.

• Ecosystem Stabilization: By creating a dependable industrial landscape, the initiative has the potential to generate more opportunities for suppliers of varying sizes throughout Europe, fostering a healthier space supply chain.

Economic Synergies and Growth Potential

The merger of these formidable forces is anticipated to yield considerable synergies, with projections suggesting annual operational income growth in the mid-triple-digit million euro range within five years post-transition. These projections are consistent with industry standards for organizational integration, as costs associated with achieving these synergies are expected to remain competitive.

Key contributions from the founding companies include:

• Airbus: Bringing in its Space Systems and Space Digital capabilities from its Defense and Space division.

• Leonardo: Adding expertise from its Space Division, which encompasses stakes in Telespazio and Thales Alenia Space.

• Thales: Contributing through its interests in Thales Alenia Space, Telespazio, and Thales SESO, reinforcing the company’s technological footprint.

Workforce and Economic Impact

The new entity is set to employ approximately 25,000 professionals across Europe, with an estimated annual revenue stream of around €6.5 billion by the end of 2024. This robust workforce will be equipped to tackle complex challenges and foster innovation within the space sector.

Ownership and Governance Structure

The ownership stakes in the new venture will be distributed among the parent companies: Airbus (35%), Leonardo (32.5%), and Thales (32.5%). This joint control schema is designed to ensure balanced governance and effective decision-making, reflecting the collaborative nature of the alliance.

Quotes from Leadership

Guillaume Faury of Airbus, Roberto Cingolani of Leonardo, and Patrice Caine of Thales articulated their united vision, emphasizing the critical nature of this alliance for European space industry advancement. They conveyed their commitment to pooling resources, expertise, and capabilities to foster innovation, enhance customer value, and solidify Europe’s role in the global space arena.

Next Steps in Corporate Transformation

As the companies advance towards operationalizing this initiative, employee representatives will be engaged in accordance with the relevant legal frameworks and collective agreements applicable in each country of the stakeholders involved. Regulatory approvals remain a vital step in finalizing the merger, with operational status anticipated by 2027.

This collaboration signifies a strategic turning point for Europe, indicating a unified commitment to securing autonomy in an era marked by rapid technological evolution and geopolitical challenges. The strength of this new venture underscores a collective ambition to lead the future of space exploration and defense.