Photo: Airbus

Airbus is evaluating potential consolidation for its Space segment in Europe, CEO Guillaume Faury told investors on Oct. 30. 

The Space segment at Airbus has been challenged this year with charges on satellite programs. Airbus restructured the Space segment earlier this year and is going through an audit of some of its programs. The company also announced up to 2,500 layoffs in the space segment earlier this month. 

Airbus, Thales, and Leonardo are reported to be in talks for a potential space merger, and the CEO of Leonardo confirmed talks in public remarks in July. 

“We are fixing our foundations while assessing strategic alternatives, rethinking the European landscape and evaluating potential consolidation options,” Faury told investors on Wednesday. 

“The space industry in Europe is undergoing major challenges in Europe and outside of Europe and needs to transform in order to remain competitive against other global players, including some new players,” he added. 

Faury added that there is an “appetite in Europe at the moment to look at sovereignty,” to create a company with the scale to better compete against non-European players. 

Third Quarter Financials

Airbus reported its third quarter financials on Oct. 30. Airbus Defence and Space reported 2.6 billion euros ($2.8 billion) in revenue during the quarter, up 6% from the same time last year. 

Growth in the Defence and Space revenue this year is mainly driven by the Air Power business, partly offset by EAC adjustments in Space Systems.

EBIT Adjusted at Airbus Defence and Space was -661 million euros (-$719 million)for the first nine months of 2024, reflecting the previously announced charges of 989 million euros ($1 billion) in Space Systems. 

For the first nine months of 2024, order intake at Defence and Space is up 30%. Faury cited a  strong order momentum across the business. This includes the SATCOMBw 3 prime contract with the German Armed Forces, which Faury said was bid on with the segment’s new, more selective bidding strategy.