Leonardo (LDO) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered double-digit growth in orders, revenues, and EBITDA/EBITA, supported by international expansion, operational improvements, and a well-balanced geographic and business mix.

• Export orders rose to 67% of total, reflecting increased international competitiveness.

• Major progress in aerostructures with a new exclusive partnership agreement and ongoing due diligence, aiming for a finalized deal by July.

• Joint ventures in advanced drones (Baykar) and land defense (Rheinmetall) are advancing, with new product launches and deliveries scheduled.

• S&P upgraded the credit rating to BBB stable; Moody’s revised outlook to positive.

Financial highlights

• Orders increased by 20.6% year-over-year to €6.9bn (excluding U.S. contribution); revenues grew 14.9% to €4.2bn.

• EBITDA/EBITA rose 17.9% to €211m; return on sales at 5.1%.

• Free operating cash flow improved to -€580m, supported by higher EBITDA and milestone payments.

• Net debt reduced to €2.1bn from €2.9bn, aided by proceeds from the UAS business sale.

• EPS at €0.655 for 1Q25; group backlog at a record €46bn.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: orders ~€21bn, revenues ~€18.6bn, EBITA ~€1.66bn, FOCF ~€870m, net debt ~€1.6bn.

• Guidance assumes no major deterioration in geopolitical, supply chain, or macroeconomic conditions.

• Capacity boost plan and efficiency initiatives expected to provide further upside, with quantitative targets to be presented in July.