Airbus, Leonardo, and Thales Unite to Form Major European Space and Defense Powerhouse

Airbus, Leonardo, and Thales have signed a memorandum of understanding to create a new European aerospace and defense company aimed at strengthening Europe’s strategic autonomy in space and competing with global giants like Boeing, Lockheed Martin, and SpaceX. Set to launch operations in 2027, pending regulatory approvals, the new joint venture will see Airbus holding 35%, and Leonardo and Thales 32.5% each. The partners will combine major assets including Airbus’ Space Systems and Space Digital units, Leonardo’s Space Division (with shares in Telespazio and Thales Alenia Space), and Thales’ holdings in Thales Alenia Space, Telespazio, and Thales SESO. The unified company is projected to employ around 25,000 people across Europe, with estimated annual revenues of €6.5 billion and an order backlog covering over three years of sales. The firms said the merger will “accelerate innovation and deliver greater value” while supporting Europe’s leadership in telecommunications, navigation, Earth observation, science, exploration, and national security. European Space Agency (ESA) Director General Josef Aschbacher welcomed the development, noting that it marks a significant shift in the continent’s industrial landscape. ESA will further assess the implications ahead of the Ministerial Council meeting in November 2025.