Leonardo S.p.A.

Leonardo reported first-half 2026 orders of around EUR 16 billion, revenue up 10% year over year, EBITA of EUR 0.73 billion, ROS of 7.6% versus 6.5% a year ago, and free operating cash flow up about 45% year over year. Orders were up around 40%, backlog was around EUR 59 billion including Iveco, and book-to-bill was 1.6 versus 1.3 in 2025. Management raised 2026 guidance to EUR 28.2 billion of orders, EUR 22.1 billion of revenue, EUR 2.21 billion of EBITA, EUR 1.37 billion of free operating cash flow, and EUR 2.2 billion of net debt.

Lorenzo Mariani said Leonardo is in a “completely different and better” position than years ago and framed the backdrop as a structural defense-spending upcycle driven by new multi-domain threats. His message was that the industrial plan stands, but execution must accelerate across production, engineering, technology, partnerships, and capacity. He highlighted GCAP, Michelangelo, Baykar, Bromo, Rheinmetall, Iveco, and Aerostructures as key initiatives, stressing speed, scale, and strategic collaboration.

Giuseppe Aurilio described first-half performance as very strong across commercial momentum, profitability, and cash. He cited orders at around EUR 16 billion, revenue up 10%, EBITA of EUR 0.73 billion, ROS at 7.6%, and FOCF up 45%, noting the cash flow also absorbed EUR 113 million for NH90 litigation and about EUR 100 million of extra taxes. He said net debt rose mainly due to the Iveco Defense Vehicles acquisition, but that excluding Leonardo’s share of MBDA cash, debt is around EUR 1 billion; he also said the Raft acquisition for around EUR 400 million is within the planned capital allocation and closing is expected in Q4 2026.

Analysts pressed management on IDV mix and whether the truck business could be sold to Rheinmetall; management said Q2 was more weighted to armored vehicles, the full year should be around 50% to 55% armored trucks, and Rheinmetall is still only one option among others. Questions also focused on whether stronger margins reflect mix or efficiency, and management said both scale efficiencies and solid program execution are helping, with the increase spread across businesses. Other topics included Aerostructures, where management said restructuring remains the plan despite delays in JV talks, plus GCAP, SAFE funding, Kuwait timing, Hensoldt, Bromo antitrust, and whether helicopters could outperform the current plan.