Airbus is reportedly exploring the sale of its US space and defense business as the aerospace giant focuses on consolidating its European satellite manufacturing operations. This strategic shift comes as Airbus aims to create a dominant pan-European player in the satellite sector through a major three-way merger.
Focus on European Satellite Dominance
Sources familiar with the matter have revealed that Airbus is evaluating potential buyers for its US space division. This business unit includes a manufacturing facility in Florida and the company’s Arrow line of small satellites. These satellites are designed for scalable production and serve commercial and government communication needs, Earth imaging, and national security applications.
Airbus gained full control of Airbus OneWeb Satellites (AOS) in 2024, acquiring the remaining 50% stake it did not already own. AOS was established in 2016 and was instrumental in building over 600 satellites for the first generation of the OneWeb low-Earth orbit internet constellation. OneWeb aims to provide global space-based broadband coverage.
The company has been actively working to shift its satellite production back to Europe. In a significant move supporting this goal, Airbus has been building 440 low-Earth orbit satellites at its Toulouse facility for OneWeb. Airbus has described this initiative as another step towards ‘European sovereignty’. This order was placed by Eutelsat, a French company that acquired the UK’s OneWeb in 2022 after it emerged from bankruptcy proceedings.
Financial Context and Strategic Merger
While Airbus has not disclosed specific revenue figures for its US space operations, estimates from knowledgeable individuals suggest annual sales in the hundreds of millions of dollars. The Florida-based unit employs over 200 people at its Merritt Island facility, strategically located near key space industry hubs like the Kennedy Space Center and Blue Origin. In comparison, Airbus has a global space workforce of approximately 11,000 employees.
This potential divestment occurs against a backdrop of financial challenges for Airbus’s global space activities. The company recorded a significant charge of €989 million (approximately $1.07 billion USD) for its space division in 2024. An additional €300 million (approximately $325 million USD) charge was taken in February 2025, bringing the total related expenses for 2024 to around €1.3 billion (approximately $1.4 billion USD).
To bolster its competitive position, Airbus agreed in October 2025 to merge its satellite manufacturing and space systems businesses with those of Italy’s Leonardo and France’s Thales. This project, codenamed ‘Bromo’, is designed to create a European champion capable of challenging established players like Elon Musk’s SpaceX and emerging Chinese competitors. The partners plan to submit their proposal to antitrust regulators in Brussels by the second half of 2026, with the aim of launching the new entity in 2027.
Industry insiders note that Airbus has been assessing its US space business for some time. The planned divestment is reportedly independent of any remedial measures that might be required by the European Commission for the ‘Bromo’ merger to gain regulatory approval.
