Leonardo closed 2024 with record results, confirming its growth and raising estimates for 2025The Italian defense giant recorded a net profit of 1,159 billion euros, up 63% compared to the previous year, also driven by the capital gain of 366 million euros resulting from the fair value valuation of Telespazio. The ordinary net income increased by 3,7%, reaching 786 million euros, thanks to the improvement inoperating profit.
The results and new opportunities offered by the European defence plan have pushed the title Leonardo up 1,74% at Business Square. Since the beginning of the year, the share price has already achieved an overall increase of almost 70%. new business plan 2025-2029, presented by management shortly before the stock market close, aims at accelerated growth through technological innovation and strategic alliances. Key focus will be the development of multi-domain-interoperability technologies, enabled by the digital continuum, and a combined strategy of organic and inorganic growth, with particular attention to Cybersecurity, Space and advanced aerial platforms.
Leonardo: growing balance sheet, orders booming
Leonardo confirmed the preliminary data released in February. revenues rose to 17,8 billion euros, an increase of 11,1% compared to 2023, while theEbitda grew by 12,9%, reaching 1,525 billion euros. The financial position also shows a clear improvement: the Free Operating Cash Flow stood at 826 million euros (+26,7%), while thenet borrowing fell to 1,795 billion euros (-22,7% compared to 2,323 billion in 2023).
2024 was a year of strong growth also on the front of orders, that have reached 20,9 billion of euros (+12,2%), bringing the book-to-bill ratio to 1,2. A significant result, obtained without monster orders, but thanks to the strong contribution of theDefense and Security Electronics, which has seen an increase in Europe and the United States through Leonardo Drs. The sector too Helicopters has made a significant contribution, as has the sector Cyber & Security Solutions.
Thanks to the success of the commercial campaigns, the order book exceeds 44 billion of euros, guaranteeing Leonardo 2,5 years of production coverage. A nice cushion for the future.
Guidance 2025
For 2025, Leonardo plans to maintain the growth rate, with orders estimated at around 21 billion of euros, up from the 20,2 billion initially forecast. revenues are expected to reach 18,6 billion euros, up from 17,7 billion in the previous plan, while theebita is expected to reach €1,66 billion, driven by increasing volumes and the recovery of Aerostructures, supported by higher deliveries for Boeing.
THEnet borrowing is expected to decline further to €1,6 billion, driven by stable cash generation of €870 million and proceeds from the disposal of the UAS business. Leonardo also announced an increase in dividend of 0,52 euros per share, almost doubled compared to 0,28 euros last year. The shareholders' meeting is scheduled for May 26.
Industrial plan 2025-2029 updated
Leonardo raises the bar with theupdate of the business plan (approved unanimously). By 2029 the orders will rise to 26,2 billion euros, the revenues to 24 billion euros, while theEbitda will grow to 2,8 billion euros. The cash generation takes off, with a Focf that will rise to 1,53 billion euros. Overall, in the period 2025-2029 Leonardo estimates cumulative orders of 118 billion euros (+5,8% Cagr), revenues for 106 billion euros (+7% Cagr), with a Ebitda in strong acceleration (+13,1% Cagr) and a Focf growing by 15,2% annually.
The Plan is already producing tangible effects: in just 12 months, efficiency has generated savings of 191 million euros, exceeding the initial target of 150 million foreseen in March 2024. The long-term objective remains set at 1,8 billion euros by 2029.
“The implementation of the Industrial Plan started 12 months ago is allowing Leonardo to play a leading role on the international scene – declared CEO Roberto Cingolani –. The strong push towards digitalization, the rationalization of the product portfolio and the efficiency programs have unlocked the potential for organic growth of the business beyond all expectations, allowing the company to immediately record an increase above forecasts on all the main performance indicators”.
Leonardo between space and defense: the new frontiers of growth
In addition to its financial successes, Leonardo is increasingly focusing its resources on space sector. There is a evaluation phase partnership with Airbus and Thales to create a joint venture dedicated to a new constellation of European satellites, in the context of Bromo Project. This ambitious initiative aims to directly challenge Starlink, Elon Musk's satellite company, in low Earth orbit. However, the project recently took an unexpected turn: Leonardo has reportedly chosen to replace Bank of America with Deutsche Bank as advisor for the joint venture. According to Bloomberg, the decision would be due to a conflict of interest related to other BofA clients. However, many analysts also see it as a strategic choice, aimed at preferring a European partner to an American one, especially after the growing tensions between Trump and Europe, with the intent of reducing dependence on American infrastructure.
This strategy is complemented by other key alliances, such as the new generation fighter developed with Bae e Jaiec, project of the European tank with Rheinmetall, and the partnership with Baykar for the development of military drones. These agreements highlight Leonardo's desire to consolidate its role as a leader in the defense and aerospace sector at an international level.
"The launch of international alliances and partnerships undertaken in recent months - concluded Cingolani - are the element that is allowing us to accelerate our development by completing our industrial and technological capabilities. No one - State or company - is able to develop alone those multi-domain and interoperable technologies necessary to guarantee the safety of its citizens, preserving the right to peace, a conquest of society that is being questioned today. In the coming years it will be increasingly crucial to be able to have a significant innovative capacity both in terms of R&D, production and people to preserve the development of the company but above all of the community".
Updated Tuesday, March 11, 2025 at 18: 20
