Airbus and Leonardo report increased space revenues for 2025

MILAN – Two of Europe’s largest primes, Airbus and Leonardo, reported increased revenues in their respective space businesses from last year.

The results, which were announced earlier this week in separate earnings reports, come as the two companies are in discussions with Thales on a joint venture named Project Bromo. Neither discussed the topic on the calls.

In 2025, Airbus Defence and Space reported revenues of 13.4 billion euros ($14.5 billion), an 11% increase from 12.1 billion euros in 2024. Leonardo’s Space division reported in the FY 2025 preliminary results revenues slightly above 1 billion euros ($1.08 billion), also reflecting an increase of about 11% compared to 906 million euros in 2024. 

Airbus reported total 2025 revenues of 73.4 billion euros, up 6% from 69.2 billion euros in 2024. Adjusted earnings before interest and taxes (EBIT) reached 7.1 billion euros, compared with 5.35 billion euros the previous year. Net income after taxes was 5.2 billion euros, and free cash flow totaled 4.6 billion euros.

Revenues from the Defence and Space division increased 11% to 13.4 billion euros from 12.1 billion euros in 2024, reflecting higher program volumes and deliveries.

The return to profitability, with adjusted EBIT of 798 million euros compared to a 566 million euro loss in 2024, was largely driven by restructuring and cost reduction measures implemented after what Airbus described as an “in-depth technical review” conducted in the first half of 2024. 

An Airbus spokesperson told SpaceNews that “In the first half of 2024, the Space Systems management team conducted an extensive technical review of all programs, identifying commercial and technical challenges. These are mainly related to updated assumptions on schedules, workload, sourcing, risks and costs over the lifetime of certain telecommunications, navigation and observation programmes.”

The 2025 report also highlights a 105 million euro loss linked to a workforce adaptation plan, recorded in the first quarter of 2025. The workforce adaptation plan “recognizes that our cost base is too high, which is why we needed to reduce our overhead and indirect positions,” the spokesperson added.

“During our reorganization in 2024 we transferred some headquarters functions to the business lines, and reduced 2,043 positions until mid-2026.”

The workforce adaptation plan focuses on Space Systems (1,128 positions) and overhead and indirect positions (915).

Both companies are involved in a wide range of European space programs. Among the most recent examples, Airbus has developed for ESA the European Service Module for NASA’s Artemis missions and recently built and launched Sentinel-6B, part of the Copernicus Earth observation program.

Leonardo, through its controlled subsidiaries Telespazio and e-GEOS, is active in space services and downstream applications, including cybersecurity activities linked to Italy’s IRIDE constellation.  

Leonardo reported 2025 revenues of 19.5 billion euros, up 11% from 2024. Adjusted EBIT reached 1.75 billion euros, an 18% increase year over year. Free operating cash flow totaled 1 billion euros, while net debt declined to 1 billion euros from 1.8 billion euros in 2024. 

Similarly to Airbus D&S, Leonardo’s Space division (which includes any activity linked with space, including those defense related) showed improved performance, with revenues slightly above 1 billion euros, compared to 906 million euros in 2024. Adjusted EBIT rose to 59 million euros from 31 million euros in 2024.

Backlog in the Space segment declined slightly, from 1.7 billion euros in 2024 to 1.6 billion euros in 2025. This represents a decrease of roughly 3%.

A Leonardo announcement said that the space segment “confirmed the trend begun in 2024 and is benefitting from the partial recovery of the manufacturing component of the Space Alliance,” a strategic partnership between Leonardo and Thales established in 2005 that includes Telespazio (Leonardo 67%, Thales 33%) and Thales Alenia Space (Thales 67%, Leonardo 33%).

The company attributed revenue growth primarily to “the growth of the Satcom business, for higher activities on military programmes and in the Satellite Systems and Operation business.”

Improved profitability is linked to the performance of Telespazio and the gradual recovery of Thales Alenia Space. During the presentation of the preliminary results, Leonardo CFO Giuseppe Aurilio specified such an increase is “part organic, due to service segment growth, and part due to lower loss of Thales Alenia Space.” Thales Alenia Space reported a negative margin of 50 million euros in 2024, which narrowed to 23 million euros in 2025, and Leondardo described it as being on an “efficiency path.”

The data from two of the three companies expected to participate in the BROMO merger appear to show a path toward recovery. The BROMO merger has been framed by Michael Schoellhorn, CEO of Airbus Defence and Space, as necessary for Europe to scale up and compete with the United States and China.