Leonardo UPDATE -- Top Line and Backlog Trending Up

The content presented below is taken from Teal Group's

Defense and Aerospace Company Briefing

When Leonardo released its latest five-year plan, 2024-2028, the growth objectives were aggressive, with targets across three dimensions: organic growth, efficiency boost and inorganic growth. As part of the overall plan the company stated that its organic growth plan would focus on three components: R&D and technological innovation, digitization of solutions and operations, and new digital services. As of year-end 2025, the company appears to be on a path to exceed its original plan.

Leonardo’s management appears to have a much sharper strategic outlook, especially given its stated focus to pursue advancement in defense electronics. It cut unprofitable investments in various business units in order to reshape the company.

Leonardo’s management has demonstrated flexibility in pursuing its strategic options. It recognizes its limitations and as such is focusing heavily on developing relations with other European aerospace firms and with leading US defense program contractors, including Northrop Grumman Corp and General Dynamics Corp.

Total company revenues in 2024 were 17.763 billion euros, up 16.2% from 15.291 billion in 2023. EBITA in 2024 was 2.219 billion euros, up 12.1% from 1.911 billion in 2023. Net Income was also up from the previous year, going from 742 million euros in 2023 to 786 million in 2024. At the end of 2024, the total backlog was 44.178 billion euros, an increase from 39.529 at the end of 2023.

Leonardo’s business mix as a percentage of sales in 2024 was as follows: defense electronics and security, 47%; helicopters, 26%; aircraft, 13%, space, 4%, cyber & security solutions, 3%, aerostructures, 3%; and other, 3%.

Leonardo's debt rating is below that of competitors in international markets. It is now rated as the first level of investment grade by Fitch at BBB- and by S&P Global at BBB-. Up until recently, debt was a major issue. Leonard has made substantial progress in reducing debt.