This article is based on an official press release from Leonardo S.p.A..

Leonardo S.p.A. Reports Double-Digit Growth in FY 2025, Halves Net Debt

On February 25, 2026, Italian defense and aerospace conglomerate Leonardo S.p.A. released its preliminary financial results for the fiscal year 2025, reporting performance that exceeded both company guidance and market expectations. The company achieved double-digit growth across all primary metrics, including new orders, revenues, and profitability, while successfully reducing its net debt by nearly 45%.

According to the official release, the company’s “One Company” transformation strategy has begun to yield significant financial efficiencies. CEO Roberto Cingolani highlighted the results as a validation of the industrial plan launched three years prior, noting that the group has strengthened its financial position ahead of potential strategic moves in 2026.

Financial Performance vs. Guidance

Leonardo reported €23.8 billion in new orders for FY 2025, a 14.5% increase over the previous year and well above the guidance range of €22.3–22.8 billion. This surge in orders has pushed the company’s total backlog to €46.6 billion, providing approximately 2.4 years of revenue visibility.

Revenues climbed to €19.5 billion, marking a 10.9% year-over-year increase. Profitability also improved significantly, with Earnings Before Interest, Taxes, and Amortization (EBITA) reaching €1.75 billion, an 18.2% rise compared to 2024. The company noted that these growth figures are “like-for-like,” excluding the contribution of the Underwater Armaments & Systems business, which was divested to Fincantieri earlier in 2025.

Perhaps the most notable metric for investors was the reduction in Group Net Debt. Leonardo lowered its debt burden to €1.0 billion, down from €1.8 billion in 2024. This reduction was driven by strong Free Operating Cash Flow (FOCF) of €1.0 billion, which beat the upper end of the company’s €980 million guidance.

“We exceeded the challenging guidance, which had been already upgraded during the year. Such a performance represents the completion of the value-accretion path launched three years ago… fully enabling the Leonardo ‘One Company’ model.”

— Roberto Cingolani, CEO of Leonardo S.p.A.

Segment Highlights

The press release detailed growth across all main business sectors, with Aeronautics emerging as a standout performer regarding order intake.

Aeronautics and Aerostructures

The Aeronautics division secured €5.8 billion in new orders, a 55% increase year-over-year. The company attributed this spike to a major logistics support contract in Kuwait and accelerating activity in the Global Combat Air Programme (GCAP). Additionally, the Aerostructures sub-unit, historically a drag on profitability, was reported to have “narrowed its losses” amid recovering demand for commercial fuselages from Boeing and Airbus.

Electronics and Cyber Security

Electronics remains the largest segment by revenue, contributing €8.35 billion. The division maintained the highest Return on Sales (ROS) at 12.9%. Meanwhile, the Cyber & Security Solutions division recorded the sharpest improvement in profitability, with EBITA jumping 63.3% to €80 million and margins hitting 10%.

Strategic Outlook: Joint Ventures and Divestments

Looking ahead to the rest of 2026, Leonardo management outlined several key strategic initiatives. CEO Cingolani confirmed that the company is in advanced negotiations to establish a Joint Venture for its Aerostructures unit. Leonardo expects to finalize the deal by June 2026, initially retaining a 50% stake in the new entity.

Furthermore, the company is currently reviewing its 22.8% stake in German defense electronics firm Hensoldt. Management indicated that discussions are underway regarding a potential reduction in this holding to facilitate an increased position by the German government, with a decision expected before the summer.

AirPro News Analysis: Market Reaction

Despite the operational “beat” across all metrics, Leonardo’s stock (LDO.MI) closed down approximately 2.7% on the day of the announcement, trading around €58.69. In our view, this reaction reflects a classic “buy the rumor, sell the news” dynamic. The stock had rallied significantly in the months leading up to the release, trading near 52-week highs.

While the immediate market reaction was negative, the fundamental improvements in cash flow and debt reduction place Leonardo in a robust position. The reduction of net debt to €1.0 billion significantly increases the company’s firepower for potential M&A activity or increased shareholder returns, such as the potential 20% dividend increase hinted at by leadership.

Sources

Sources: Leonardo S.p.A. Press Release, Borsa Italiana Market Data