Airbus Defence and Space is capitalizing on a surge in European demand for satellite systems after turnarounds in its space division, which took nearly 2.3 billion euros in charges over 2023 and 2024 due to cost and schedule overruns on programs like OneSat. The company's leadership credits reforms to cost controls, risk management, and project discipline with positioning Airbus to capture growing orders from civil and defense customers, particularly around the European Commission's IRIS² constellation, military satellite systems, and Earth observation capabilities. Schoellhorn said the timing aligned well with record European Space Agency funding and increased institutional interest in space.
The transformation followed poor performance on technology-heavy programs that triggered the massive charges two years ago. Airbus implemented what Schoellhorn called a "major transformation" focused on tighter order intake discipline and improved delivery readiness across the division. He noted the company is mulling expansion of its Earth observation business, citing routine demand spikes during crises. The executive did not provide specific financial metrics for 2024 results, citing a blackout period ahead of first-half 2026 earnings due July 29.
Airbus is also pushing forward with Bromo, a joint venture combining its space business with units from Leonardo and Thales Alenia Space, formally announced in October after over a year of negotiations. The three companies expect regulatory approval by 2027, though the deal faces opposition from labor unions concerned about layoffs and from competitor OHB over competition effects. Bromo is one of three planned joint ventures Airbus Defence and Space will operate, projected to generate about 15 billion euros in annual revenue alongside missile producer MBDA and ArianeGroup.
Airbus posted 800 million euros in EBIT for 2025 and targets 1.3 billion euros by 2029, a goal Schoellhorn said was achievable regardless of whether Bromo clears regulatory approval. He framed the path forward as moving away from bundling disparate businesses under one management structure. The company intends to focus its core Defence and Space division on air power capabilities while housing space, missiles, and launch operations in separate joint ventures.