Leonardo (LDO) Q4 2025 earnings summary

Executive summary

• Orders reached €23.8 billion, up 14–14.5% year-over-year, exceeding guidance and driven by strong export campaigns and broad division growth.

• Revenues rose to €19.5 billion, up 9.8–11% year-over-year, surpassing guidance with double-digit growth across all divisions.

• EBITDA/EBITA increased to €1.75 billion, up 14.9–18.2%, with return on sales improving to 9.0%.

• Free operating cash flow exceeded €1 billion for the first time, up 20.5–22.4% year-over-year.

• Net debt reduced by 44–44.2% to €1 billion, supported by strong cash generation and asset disposals.

• Transformation to a unified multinational with a clear industrial vision and disciplined execution.

• Significant progress in sustainability, innovation, and workforce diversity.

Financial highlights

• Orders grew 38% over three years, revenues up 33%, EBITDA up 44%, and free operating cash flow up 88%.

• Book-to-bill ratio at 1.2x, with backlog at €46.6–47 billion.

• Segmental performance: Defense Electronics EBITA/EBITDA above €1 billion (ROS ~13%), Helicopters ROS at 9%, Aircraft close to 13%, Aerostructures negative but improving.

• Cybersecurity and Space divisions both exceeded €1 billion in orders and revenues, with strong growth and improved margins.

• R&D expenses increased 20% to €3.0 billion, representing 15% of revenues.

Outlook and guidance

• All 2025 targets exceeded, with updated guidance surpassed for orders, revenues, EBITA, and FOCF.

• Further dividend increase expected, likely +20%, in line with net income growth.

• Aerostructures expected to remain loss-making in 2026, with break-even targeted for 2028–2029.

• New industrial plan and 2026 guidance to be presented in March.