Leonardo reports strong H1 2026 growth, driven by robust global defence and aerospace demand
Amid sustained global demand for defence and aerospace technologies, Leonardo, a leading Italian aerospace, defence and security company, reported a 44.6 pc year-on-year increase in new orders during the first half of 2026, driven by strong performance across all business sectors and prompting the company to upgrade its full-year financial guidance.
In a press statement, Leonardo says that the company has reported strong growth, with revenues increased 12.2 pc to EUR 10 billion, while Earnings Before Interest, Taxes and Amortisation (EBITA) rose 34.3 pc to EUR 780 million. Adjusted net profit climbed 74.4 pc to EUR 476 million, while Free Operating Cash Flow (FOCF) improved 39 pc year-on-year to negative EUR 249 million despite the seasonal cash absorption typically seen in the first half of the year.
The statement adds that the order backlog increased 30.1 pc year-on-year to approximately EUR 58.6 billion, supported by the consolidation of Iveco Defence Vehicles (IDV), providing more than 2.6 years of production coverage. The company maintained a book-to-bill ratio of 1.6 times, confirming strong commercial momentum across its global operations.
According to the statement, the Defence Electronics business remained the largest contributor during the period, recording EUR 7.03 billion in new orders, EUR 27.63 billion in order backlog, EUR 4.51 billion in revenues and EBITA of EUR 557 million. The Helicopters division posted EUR 4.53 billion in new orders and EUR 2.9 billion in revenues, driven by the UK Ministry of Defence contract for 23 AW149 helicopters and additional export orders.
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Aeronautics reported the strongest order growth of 87.5 pc year-on-year, supported by M-346 trainer aircraft orders from Austria and Italy, Eurofighter Typhoon orders from Germany and Italy, and improving commercial aircraft demand. Cyber & Security Solutions increased new orders by 14.6 pc and revenues by 17 pc, while the Space business reported 11.6 pc growth in orders and 14.4 pc growth in revenues.
Gross performance improved across all business sectors, with revenues benefiting from stronger execution despite negative foreign exchange impacts from Leonardo DRS operations in the United States. The company says operating profitability increased, with Return on Sales (ROS) improving to 7.8 pc from 6.5 pc a year earlier, while Group Net Debt stood at EUR 3.25 billion, primarily reflecting the EUR 1.6 billion acquisition of the IDV business.
Leonardo says that following the strong first-half performance, it has upgraded its full-year guidance. The company now expects new orders of around EUR 28.2 billion, up from the previous guidance of EUR 26.2 billion, EBITA of around EUR 2.21 billion compared with the earlier EUR 2.15 billion, and Free Operating Cash Flow of approximately EUR 1.37 billion instead of EUR 1.32 billion. Revenue guidance remains unchanged at around EUR 22.1 billion, while expected Group Net Debt has been lowered from around EUR 2.3 billion to EUR 2.2 billion.
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The company says it strengthened its strategic position during the period by completing the EUR 1.6 billion acquisition of IDV, signing a cyber defence cooperation agreement with Indra Group, acquiring the remaining stake in GEM Elettronica, completing the acquisition of UK cybersecurity firm BeCrypt Ltd and announcing the proposed acquisition of mission software company Raft through Leonardo DRS. It also launched a EUR 600 million ESG-linked term loan, initiated a share buyback programme and retained improved investment-grade credit ratings from Moody’s, S&P and Fitch.
Lorenzo Mariani
“The first-half performance confirms the company is delivering across all pillars of its industrial plan, with stronger order intake, revenue growth, profitability and cash generation enabling it to raise its 2026 guidance while continuing investments in industrial capabilities, supply chain resilience, critical technologies, acquisitions and strategic partnerships,” says Lorenzo Mariani, Chief Executive Officer and General Manager, Leonardo.
