"Space is fundamental for defense and security in the future, both in terms of satellites and services," said CEO Roberto Cingolani in a recent press briefing.

The former minister said more public and private investment is needed in the space sector to develop secure defense and communications systems.

State-owned Leonardo produces satellites, orbiting infrastructure and sensors, as well as operating satellite services and propulsion and launch systems.

There is still plenty of room for growth, as space generated just under 4 percent of Leonardo's Ebita in 2023.

"For the first time, the space industry will be an important chapter in the company's business plan," Chief Space Business Officer Franco Ongaro said Monday ahead of the plan's March 12 presentation.

Morgan Stanley estimates that the global space industry will generate revenues of more than $1 trillion or more in 2040, up from about $350 billion in 2020.

Minister of the Ministry of Enterprise and Made in Italy Adolfo Urso said Monday that space is crucial to the development of the economy.

Urso added that Parliament will pass a national framework law by summer to regulate the rapidly expanding space economy sector and that the government has allocated 320 million euros for the next two years.

Ongaro said Leonardo's space activities will include partnerships and manufacturing.

Leonardo works with France's Thales through two separate joint ventures, satellite services company Telespazio and space manufacturer Thales Alenia Space.

In February, the Defense Ministry asked Leonardo to study the development of the military space cloud architecture project, the first in Europe.

Earlier this week, Telespazio's Fucino space center was assigned the role of main control site for the EU satellite constellation IRIS².

Leonardo also recently revised its space alliance agreement with Thales, allowing it to fully consolidate Telespazio starting in 2024.

Like its aerospace and defense competitors, Leonardo has benefited from rising geopolitical tensions and increased military budgets, with its stock rising 90 percent in the past year.

(Giulia Segreti, translated by Chiara Scarciglia, editing Sabina Suzzi)