Airbus and Leonardo Report Increased Space Revenues for 2025

Why It Matters

The revenue gains and cost cuts signal a strengthening European space sector, positioning Airbus, Leonardo and a potential Bromo JV to better compete with U.S. and Chinese rivals. Sustained profitability will be crucial for funding ambitious programs like Artemis and Copernicus.

Key Takeaways

• Airbus space revenue hits €13.4bn, up 11%
• Leonardo space division exceeds €1bn, also 11% growth
• Both firms cut overhead, reducing 2,043 positions by 2026
• Project Bromo JV discussed to boost European competitiveness
• Space backlog fell 3% to €1.6bn in 2025

Pulse Analysis

European space manufacturers are entering a pivotal growth phase. Airbus Defence and Space’s €13.4 billion space turnover and Leonardo’s just‑over €1 billion mark an 11 % year‑on‑year rise, reflecting stronger demand for satellite communications, navigation and Earth‑observation services. These figures come on the back of high‑profile contracts such as Airbus’s European Service Module for NASA’s Artemis program and Leonardo’s involvement in Italy’s IRIDE constellation, underscoring Europe’s expanding role in both commercial and governmental missions.

Behind the top‑line growth, both firms have undertaken aggressive restructuring to restore profitability. Airbus turned a €566 million EBIT loss in 2024 into a €798 million gain in 2025, while Leonardo lifted adjusted EBIT to €59 million in its space segment. Workforce adaptation plans eliminated 2,043 positions, targeting excess overhead in Space Systems and indirect functions. Although the space backlog slipped 3 % to €1.6 billion, cost‑reduction measures and higher‑margin service contracts have offset the dip, delivering stronger free cash flow and lower net debt.

Strategically, the financial momentum fuels talks on Project Bromo, a joint venture with Thales that could reshape the European space landscape. By merging complementary capabilities—Airbus’s deep‑space hardware, Leonardo’s downstream services, and Thales’s satellite manufacturing—the alliance aims to achieve scale comparable to U.S. and Chinese competitors. If realized, Bromo would create a unified European champion capable of securing larger international contracts, driving further R&D investment, and reinforcing the continent’s strategic autonomy in space exploration and security.