With a 14.2 pc year-on-year rise in revenue registered during the first nine months of the year (Photo: Leonardo)
With a 14.2 pc year-on-year rise in revenue registered during the first nine months of the year, Leonardo, Italian aerospace and defence giant, has reported total revenues of EUR 15.3 billion, compared to EUR 13.4 billion during the corresponding period last year. Its Earnings Before Interest, Taxes and Amortisation (EBITA) also increased 37.7 pc to EUR 1.3 billion, while new orders grew 27.8 pc to EUR 23.3 billion.
In a press statement, Leonardo says its Board of Directors has approved the financial results for the first nine months of the year, with the group recording an adjusted net profit of EUR 812 million, registering a 74.2 pc increase compared to EUR 466 million in the same period last year. Its order backlog also increased 27.7 pc to EUR 60.4 billion, crossing the EUR 60 billion mark for the first time.
Leonardo recorded new orders worth EUR 23.3 billion during the period, compared to EUR 18.2 billion in the first nine months of 2025, representing a growth of 27.8 pc. The book-to-bill ratio stood at approximately 1.5 times, while the order backlog provides production coverage of more than 2.7 years.
Leonardo says the strong order performance was primarily driven by its Defence Electronics business, reflecting its positioning across different markets and geographical regions. The results also reflect the consolidation of Iveco Group’s Defence business (IDV), acquired on March 18, 2026, for approximately EUR 1.6 billion.
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In terms of financial performance, the Group’s Free Operating Cash Flow (FOCF) stood at negative EUR 68 million, marking an 84 pc improvement compared to negative EUR 426 million during the corresponding period last year. Excluding the consolidation of IDV, FOCF stood at a positive EUR 22 million.
Meanwhile, its net debt increased 43.8 pc year-on-year to EUR 3.3 billion, primarily reflecting the expenditure incurred for the acquisition of IDV.
“The results for the first nine months of 2026, with an Order Backlog exceeding EUR 60 billion for the first time, Revenues and EBITA growing across all business sectors, and a marked improvement in FOCF, confirm the soundness of our growth strategy. The Group is focused on strengthening its capabilities, expanding production and delivery capacity, improving process efficiency and ensuring effective programme execution to convert its growing order backlog into deliveries,” says Lorenzo Mariani, Chief Executive Officer and General Manager, Leonardo.
In terms of sector-wise performance, Defence Electronics remained the largest contributor, recording revenues of EUR 7.1 billion, up 22.9 pc year-on-year, while EBITA increased 34.2 pc to EUR 895 million.
The Helicopters business reported revenues of EUR 4.3 billion, registering a 5.4 pc increase, while EBITA rose 8.4 pc to EUR 347 million. Aeronautics recorded revenues of EUR 3 billion, up 7.3 pc, with EBITA surging 91.7 pc to EUR 184 million.
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Cyber & Security Solutions reported revenues of EUR 623 million, an increase of 17.1 pc, while its EBITA grew 36.6 pc to EUR 56 million. The Space business recorded revenues of EUR 777 million, up 10.7 pc, with EBITA increasing 26.7 pc to EUR 38 million.
Following the strong commercial performance during the first nine months and expectations of further progress in the fourth quarter, Leonardo has upgraded its full-year 2026 new orders guidance to approximately EUR 29.5 billion, compared to the previous estimate of EUR 28.2 billion.
The Group has maintained its other financial targets for 2026, including revenues of approximately EUR 22.1 billion, EBITA of EUR 2.21 billion, Free Operating Cash Flow of EUR 1.37 billion and Group net debt of approximately EUR 2.2 billion.
