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Aerospace · Defense · Forecast · Guidance
Italy's state-controlled defense giant, Leonardo S.p.A., has significantly upgraded its financial guidance for 2025, signaling robust growth driven by a strong order backlog and increased European defense spending.
The company now anticipates revenues to reach approximately 18.6 billion euros, a notable increase from the 17.7 billion euros projected in its March 2024 five-year industrial plan. New orders are expected to hit around 21 billion euros by year-end, following a strong performance in 2024 that surpassed earlier expectations.
Furthermore, Leonardo projects an EBITA profit of approximately 1.66 billion euros for 2025. This positive outlook is underpinned by the sustained expansion of its core businesses, particularly defense electronics and helicopters, which are benefiting from the current geopolitical landscape.
The company's management emphasized that these revised expectations confirm a sustainable growth trajectory, aiming to strengthen its competitive position in both domestic and international markets, supported by enhanced profitability and cash generation. Investors reacted positively, with shares climbing 2.4% on the Milan bourse, reflecting the market's confidence in Leonardo's strategic direction and its ability to capitalize on the ongoing surge in global defense expenditures.
The stock has seen an impressive 380% increase since February 2022, highlighting the long-term impact of geopolitical shifts on defense contractors.
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