Leonardo Shares Fall on Reports CEO Could Be Replaced

By Cristina Gallardo

Leonardo's shares took a hit after media reports said its Chief Executive Roberto Cingolani is likely to be replaced.

Shares in Leonardo were down 6.9% at 57.99 euros in Tuesday midday trade, but still up 22% in the year to date.

The share drop came after several outlets reported that the Italian government was looking to replace Cingolani.

Leonardo and Italy's defense ministry didn't respond to requests for comment.

Cingolani was appointed in May 2023 for a three-year term that is due to end at the company's annual meeting scheduled for next month. The Italian government holds a 30.2% stake in the Milan-listed group.

Activist investor Guy Wyser-Pratte, founder of Leonardo shareholder Wyser-Pratte Management, said he opposed the removal of Cingolani, calling it a textbook case of political meddling.

Wyser-Pratte, who started accumulating shares in Leonardo in August 2025, said he decided to speak out to protect the company's shareholders from what he called an unwarranted government intrusion into a company whose management has done an excellent job.

"We will defend our interests and those of Leonardo's shareholders vigorously, and we stand ready to assist Leonardo management by exercising our historic role," he said.

Leonardo's stock price has more than quadrupled since Cingolani, a physicist and former Italian minister of the environment and energy security, became CEO. This rise was partly fueled by rising defense spending in Europe and other key markets since Russia's large-scale invasion of Ukraine in February 2022.

Under Cingolani, Leonardo moved to reduce debt and enter into new international collaborations with defense giants such as Germany's Rheinmetall.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

(END) Dow Jones Newswires

April 07, 2026 07:11 ET (11:11 GMT)