- 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. Key risks include geopolitical instability and supply-chain constraints. At current multiples, the stock offers a balanced risk/reward profile, albeit the DCF fair value suggests a significant valuation gap that could close with sustained cash-flow growth and multiple expansion.
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