Leonardo Community

Key Takeaways Challenges in the Aerostructures Division and defense market dependence pose risks to revenue and operational margins due to geopolitical uncertainties and potential spending disruptions. Acquisition-driven growth promises opportunity but carries integration risks, which, along with high R&D investments, could strain financials and impact earnings stability.

Key Takeaways Export growth and aggressive efficiency initiatives are propelling accelerated revenue and margin expansion, with structural cost reductions and free cash flow set to improve sustainably. Strategic moves in cyber, unmanned tech, and joint ventures are unlocking high-margin growth, diversifying earnings, and ensuring strong momentum in response to global defense trends.

Key Takeaways Regulatory shifts, climate concerns, and protectionist trends threaten core revenues, international expansion, and undermine Leonardo's ability to diversify and grow. Dependence on European contracts and lagging technological innovation increase exposure to political risk, margin volatility, and long-term market share erosion.

Key drivers: Strong order backlog, efficiency gains, higher defence budgets, digital & services growth Margin expansion: From mid-single digits to high-teens EBIT margins by 2029 Risks: Geopolitics, supply chains, cybersecurity, ESG/regulation, talent Valuation: Trading at ~1.5x EV/Sales and ~23x forward P/E Summary: Leonardo benefits from robust global defence spending, a diversified aerospace portfolio and accelerating service revenues. Efficiency programmes and digitalisation underpin margin improvement, while a strong balance sheet supports capital allocation.