Leonardo (LDO) Q2 2025 earnings summary

Executive summary

• Orders rose 9.7% year-over-year to €11.2 billion, revenues up 12.9% to €8.9 billion, and EBITA up 15% to €581 million in H1 2025, despite the sale of the UAS business in January 2025.

• Free operating cash flow improved 19% year-over-year to -€408 million, and net debt reduced by 27.6% to €2.17 billion.

• Upgraded full-year 2025 guidance for orders (€22.25–22.75 billion), free operating cash flow (€920–980 million), and net debt (€1.1 billion), reflecting strong demand and operational execution.

• Strategic initiatives included major M&A in cyber and land platforms, joint ventures with Rheinmetall, Baykar, and BAE, and the launch of the GCAP program.

• Significant portfolio actions included the sale of the UAS business, acquisitions of SSH and Axiomatics, and the agreement to acquire Iveco Defence for €1.7 billion.

Financial highlights

• Orders: €11.2 billion (+9.7% YoY); Revenues: €8.9 billion (+12.9% YoY); EBITA: €581 million (+15% YoY); ROS: 6.5%.

• Net result before extraordinary items: €273 million (+44.4% YoY); reported net result: €542 million, including capital gain from UAS sale.

• Free operating cash flow: -€408 million (improved by 19% YoY); net debt: €2.17 billion (down 27.6% YoY).

• Dividend per share doubled to €0.52; investments up over 15% CAGR 2023–2025.

• Group liquidity at €5.8 billion as of June 30, 2025.

Outlook and guidance

• FY2025 guidance raised: new orders €22.25–22.75 billion, FOCF €920–980 million, net debt €1.1 billion.

• Revenue and EBITA guidance confirmed at ~€18.6 billion and ~€1.66 billion.

• Dividend payments increased from €0.28 to €0.52 per share.

• Guidance assumes stable geopolitical, supply chain, and macroeconomic conditions.