After several years of decline, Airbus’s space systems division is back to growth.
The European aerospace giant reported a 28% surge in Q1 ‘25 space sales last month, building on 2024’s 10% growth.
The turnaround comes after the company initiated a multi-year review of its space program, which resulted in the elimination of 2,500 jobs, a $650M charge in 2023, and a $1.4B hit in 2024. The reason provided for the charges was over-aggressive bidding that exposed the company to technical gaps, particularly in its comms and navigation satellite portfolio.
But, with $2B of charges behind it, the company is ready to move forward, albeit in a more selective contracting posture.
- “We can now completely focus on what matters in the business, which is taking orders with a good risk profile, focusing on the execution and the delivery,” Airbus CFO Thomas Toepfer said early this year. “I would say we’re done with a cleaning exercise.”
The improved revenue and outlook were supported by recent contract wins, including:
- A $157M contract to build two SAR defense satellites for the UK.
- A contract with Eutelsat to build 100 OneWeb satellites, due at the end of 2026.
- A $2.5B contract with the German military to build two large GEO comms satellites.
Also, Ariane 6, a JV between Airbus and Safran via ArianeGroup, nailed its first commercial launch in March.
Airbus should directly benefit from Europe’s saber-rattling regarding sovereign defense and space, particularly as the EU appears determined to wean itself off Starlink.
We don’t talk about Bruno: Airbus Space and Defense is in merger talks with Thales and Leonardo satellite businesses, in what is being called Project Bromo. The goal of a new European conglomerate? Increase efficiency, increase production, and better compete with SpaceX.