Leonardo (LDO) Q3 2025 earnings summary

Executive summary

• Achieved strong growth across all key financial and operational metrics in the first nine months of 2025, with robust order intake, revenue, and profitability improvements, supported by a record backlog of over €47 billion and successful execution of the Industrial Plan.

• Confirmed upgraded full-year 2025 guidance, with all key metrics on track, continued focus on disciplined capital allocation, and shareholder returns.

• Major leadership changes and succession planning in finance and Investor Relations, ensuring business continuity.

• Positive impact from the sale of the Underwater Armaments & Systems (UAS) business, improved free operating cash flow, and a substantial reduction in Group Net Debt.

Financial highlights

• New orders rose 24.3% year-over-year to €18.2 billion, with a book-to-bill ratio of 1.4 and an order backlog of €47.3 billion.

• Revenues increased 12.4% to €13.4 billion; EBITA up 18.9% to €945 million; return on sales improved to 7.0%.

• Free Operating Cash Flow improved by 22.5% to -€426 million, and Group Net Debt decreased 25.9% to €2.3 billion.

• Net result before extraordinary transactions was €466 million (+28.0%), and net result was €735 million, benefiting from the UAS business sale.

• Dividend per share nearly doubled to €0.52 in 2025.

Outlook and guidance

• Full-year 2025 guidance confirmed: new orders €22.25–22.75 billion, revenues ~€18.6 billion, EBITA ~€1.66 billion, FOCF €920–980 million, and Group Net Debt ~€1.1 billion.

• Guidance incorporates geopolitical, supply chain, inflationary, and macroeconomic risks, including the Norwegian NH90 program settlement.

• Management confident in exceeding revenue and cash flow targets, but prefers not to update guidance for marginal increases.