Leonardo (LDO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong growth across all key financial and operational metrics, with record order intake, revenue, and profitability improvements, reflecting effective commercial and operational strategies.

• Order backlog surpassed €56.8 billion (+23% year-over-year), providing over 2.5 years of production coverage, supported by the consolidation of the IDV business.

• Completed the acquisition of Iveco Defence Vehicles (IDV) for €1.6 billion, consolidated in the balance sheet as of March 31, 2026; IDV's full P&L impact starts from Q2.

• Major contract wins in Aeronautics (Austrian, Italian, and German Air Forces) and Helicopters (UK Ministry of Defence), supporting growth.

• Credit ratings upgraded: Moody's to Baa2 (positive outlook), S&P outlook improved to positive.

Financial highlights

• New orders reached €9.0 billion, up 31% year-over-year; backlog at €56.8 billion, book-to-bill ratio of 2.0x.

• Revenues increased to €4.45 billion, up 7% year-over-year (10% at constant FX); EBITDA up 24.3% to €435 million.

• EBITA rose to €281 million, up 33% year-over-year; ROS improved to 6.3% (+1.2 p.p.).

• Adjusted net result was €184 million, up 60% year-over-year.

• Free Operating Cash Flow (FOCF) improved by 29% year-over-year to -€411 million; group net debt increased to €3.05 billion, mainly due to the IDV acquisition.

Outlook and guidance

• Full-year 2026 guidance confirmed: new orders ~€25 billion, revenues ~€21 billion, EBITA ~€2.03 billion, FOCF ~€1.11 billion, net debt ~€0.8–1.1 billion (excluding IDV acquisition cash outflows).

• IDV expected to contribute €1.2 billion in new orders, €1.1 billion in revenues, €0.12 billion in EBITA, and €0.22 billion in FOCF for April–December 2026.

• Guidance assumes stable FX rates and no major geopolitical or supply chain disruptions.