Airbus is considering the sale of its US small-satellite manufacturing business as the European aerospace group reorganizes its space activities and moves production of the next generation of OneWeb satellites to France.
The Financial Times reported on August 29 that Airbus has launched a strategic review of the US operation, with a sale among the options being considered. No decision has been made and potential buyers have not been disclosed.
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The business includes the satellite manufacturing facility at Merritt Island, Florida, close to NASA's Kennedy Space Center. The operation employs more than 200 people and generates several hundred million dollars in annual revenue, according to people familiar with the matter cited by the FT.
Airbus confirmed to the newspaper that it is reviewing its US space operations, while stressing that the process is separate from the planned combination of its European space activities with those of Leonardo and Thales.
The potential transaction does not involve the wider Airbus U.S. Space & Defense business, which has activities spanning military aircraft, helicopters, space and government services in the United States.
From OneWeb factory to Airbus ownership
The Florida operation traces its origins to Airbus OneWeb Satellites, a 50-50 joint venture established by Airbus and OneWeb in 2016 to industrialize the mass production of low-Earth orbit satellites.
Its production system represented a departure from traditional satellite manufacturing, with the factory designed to build spacecraft at rates of up to two per day. More than 600 satellites for the first-generation OneWeb constellation were eventually produced.
Airbus took full control of the company in January 2024 by acquiring the remaining 50% stake from Eutelsat OneWeb.
At the time, the manufacturer said it was expanding and retooling Merritt Island to produce its Arrow450 satellite platform for commercial and US government customers.
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The strategic direction has since changed. In January 2026, Eutelsat ordered another 340 OneWeb low-Earth orbit satellites from Airbus, bringing its latest commitments to 440 spacecraft when combined with an earlier 100-satellite order.
Those satellites are being produced in Toulouse rather than Florida. Airbus is establishing a new high-volume production line in France, with deliveries scheduled to begin by the end of 2026. The company has linked the program to Europe's efforts to maintain sovereign satellite communications capabilities.
European space consolidation
The review of the US operation also comes as Airbus prepares a much larger restructuring of its European space business.
Airbus, Leonardo and Thales agreed in October 2025 to combine major parts of their space activities into a new company. Airbus is expected to hold 35% of the venture, with Leonardo and Thales each owning 32.5%.
The combined company is expected to employ about 25,000 people and generate approximately €6.5 billion in annual revenue. Operations are targeted to begin in 2027, subject to regulatory approvals.
The project is intended to give Europe's satellite industry greater scale at a time when traditional manufacturers face growing competition from companies operating large low-Earth orbit constellations, most notably SpaceX with Starlink.
Airbus has stressed that its review of the US small-satellite operation is separate from this transaction.
Space business has returned to profit
The potential disposal also follows a financial recovery at Airbus Defence and Space after substantial charges related to troubled satellite programs.
In 2024, Airbus recorded €1.3 billion in charges following reviews of several space programs. Defence and Space consequently posted an adjusted EBIT loss of €566 million.
The division returned to profitability in 2025. Revenue increased 11% to €13.4 billion, while adjusted EBIT reached €798 million. Orders totaled €17.7 billion and the division ended the year with a backlog of €50.8 billion.
Airbus also recorded €105 million in costs during 2025 related to its Defence and Space restructuring program, which includes plans to eliminate up to 2,043 positions.
The recovery continued this year. During the first half of 2026, Defence and Space revenue increased 9% to €6.32 billion, while adjusted EBIT climbed 84% to €487 million.
The improved financial performance suggests that the review of the Florida operation is taking place within a wider reshaping of Airbus' space activities rather than as an immediate response to losses.
A sale would nevertheless mark a significant change from Airbus' plans for the facility little more than two years ago, when it took full ownership and outlined plans to expand US production of small satellites.
