Leonardo Earnings: Good Start; Lift FVE 47% on Capacity Boost, Export Upside, and Higher Italy Share

Narrow-moat Leonardo reported a robust start to 2025, underpinned by accelerating order momentum, expanding margins, and improving cash generation. Group order intake rose 20.6% year on year to EUR 6.9 billion, driving a record backlog of EUR 46 billion, with a healthy 1.7 times book/bill ratio. Revenue rose by 14.9% to EUR 4.2 billion, driven by strong performance in defense electronics, helicopters, and aircraft. EBITDA rose 17.9% to EUR 211 million, with the return on sales improving to 5.1%, and free operating cash flow turned positive at EUR 580 million, supported by working capital discipline and milestone payments. Net debt decreased to EUR 2.1 billion, aided by proceeds from the UAS business sale, driving rating upgrades by S&P and Moody’s. Management reaffirmed 2025 guidance.