The Italian defense group boosted guidance after strong first-half demand, while CEO Lorenzo Mariani said further acquisitions and partnerships could help it expand capacity and technology.
Leonardo raised its full-year guidance for orders, core earnings and cash flow after first-half new contracts rose 45%, and Chief Executive Lorenzo Mariani said the company expects to keep pursuing acquisitions and strategic partnerships as Europe’s defense spending boom accelerates. The Italian aerospace and defense group now sees full-year new orders at €28.2 billion, up from €25 billion previously, while EBITA is forecast at €2.21 billion versus €2.03 billion before. Revenue guidance remains around €22.1 billion. Leonardo has been broadening its portfolio through deals in land systems, cybersecurity and AI-enabled mission software, including the €1.6 billion acquisition of Iveco Defence Vehicles completed in March, the agreed purchase of British cybersecurity company Becrypt, and a $450 million deal by U.S. subsidiary Leonardo DRS to buy software company Raft. The company reported a record order backlog of €59 billion at the end of June, up 30% from a year earlier, underscoring strong demand as European contractors race to increase production amid the war in Ukraine and higher NATO spending targets. Leonardo shares are up about 11% year to date, roughly in line with the Stoxx 600.