Leonardo (LDO) Status Update summary

Financial performance and growth outlook

• Orders are projected to rise from EUR 20.9 billion in 2024 to EUR 26.2 billion in 2029, with revenues increasing from EUR 17.8 billion to EUR 24 billion, and EBITDA/EBITA growing from EUR 1.52 billion to EUR 2.8 billion, with return on sales reaching 11.8%.

• Free operating cash flow is expected to double to EUR 1.53 billion by 2029, with a five-year efficiency plan targeting EUR 1.8 billion in savings, already ahead of schedule.

• Cumulative orders and revenues for 2025-2029 are expected at EUR 118 billion and EUR 106 billion, with order backlog growing to EUR 56.8 billion.

• Growth is driven by organic initiatives, R&D, new products, and international alliances, with a projected CAGR of 5.8% for orders and 7% for revenues from 2025-2029.

• Exogenous challenges such as the Boeing crisis and Satcom have been offset by strong core business performance.

Strategic initiatives and partnerships

• Multi-domain interoperability strategy integrates legacy platforms with new tech in cybersecurity, space, AI, and cloud, supported by digitalization and a new Multi-Domain Innovation Hub.

• New joint ventures include Baykar (UAVs), Rheinmetall (land defense), GCAP (sixth-gen fighter), and a new Space Division with a LEO satellite constellation, with launches planned for 2027-2028 and a EUR 900 million budget.

• M&A focus is on cyber and space, with five ongoing offers and EUR 1.25-1.3 billion reserved for inorganic growth.

• Capacity Boost program launched to address potential supply chain and production bottlenecks if defense demand surges.

• Strategic partnerships in aerostructures and electronics aim to boost volumes, diversify business, and enhance cost efficiency.

Technological and operational transformation

• Digitalization includes internal process automation, digital twins, smart manufacturing, cloud-native ERP, and advanced PLM.

• Launch of Leonardo Hypercomputing Continuum LoB to double HPC power by 2026 and provide AI-driven analytics and services.

• Talent acquisition and development plans focus on quantum, AI, HPC, and digital skills, with flexible training and AI-based learning tools.

• Digitalization to boost storage and computing capacity by 40% per capita by 2025.

• Portfolio rationalization and disposal of non-core assets executed to streamline operations.