Leonardo S.p.A.

For the first half of 2026, Leonardo reported orders of around EUR 16 billion, up about 40% year over year; revenues up 10%; EBITA of EUR 0.73 billion, up around 30%; return on sales of 7.6%, up from 6.5%; and adjusted net income up 74%. Free operating cash flow improved roughly 40% to 45% year over year, though it remained negative seasonally, and net debt increased mainly because of the Iveco Defence Vehicles acquisition. Full-year guidance was raised to EUR 28.2 billion of orders, EUR 22.1 billion of revenues, 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 framed the quarter as evidence that Leonardo is operating in a new defense environment with faster demand, more integrated solutions, and structural spending acceleration in both the U.S. and Europe. He stressed continuity in the industrial plan, but repeatedly said the company must accelerate execution, production scale-up, technology investment, and strategic partnerships. His tone was optimistic and operationally focused, with emphasis on GCAP, Michelangelo, Baykar, Bromo, Rheinmetall, Iveco Defense Vehicles, and aerostructures restructuring.

Giuseppe Aurilio highlighted a broad-based first-half beat: orders around EUR 16 billion, revenues up 10%, EBITA at EUR 0.73 billion, ROS at 7.6%, and adjusted net income up 74%. He said free operating cash flow improved strongly, helped by higher profitability and better working-capital management, despite EUR 113 million of NH90 litigation cash out and roughly EUR 100 million of extra taxes paid versus last year. He also said net debt rose because of the Iveco acquisition, but that excluding Leonardo’s share of MBDA cash, net debt is around EUR 1 billion and the balance sheet remains solid; he added the Raft deal is consistent with the group’s capital allocation framework.

Analysts focused on IDV mix and margins, Aerostructures turnaround timing, second-half order phasing, SAFE funding, Bromo antitrust, GCAP timing, and whether helicopters could outperform plan. Management said IDV’s Q2 mix favored armored vehicles, but the full year should be roughly 50% to 55% armored trucks; they also said the Rheinmetall truck option remains open, but is not the only path. On orders, they said the first half benefited from several large wins and that order flow is not linear; on Aerostructures, they kept the restructuring-and-JV plan unchanged and said the business is still loss-making though improving. They also said the window for adding another GCAP partner is closing, that bringing GCAP forward is feasible only by phasing initial requirements, and that SAFE should not delay key Italian programs because funding can come from other sources as well.