It's not just about one of the best companies in the world, but the business of Leonardo, of which the Treasury holds 30%, crosses interests that go well beyond the Italian perimeter, passing from United States, to the allies of NATO, to the European Commission. Furthermore, in choosing the people who will have to lead the top player in the aerospace, defense and security sectors, the government will first have to start from the guidelines of the Quirinale, considering that the President Mattarella he is the Supreme Head of the Armed Forces.
The former banker Alessandro Profumo, 65 years old, installed by Paolo Gentiloni on 16 May 2017 with a mandate that will expire in May, is well aware that the government's decision regarding his position will be above all political and goes well beyond company results, but to leave no doubts, he delivers to a record company expires.
Leonardo: Profumo delivers a company with a long-term vision and ever-growing accounts
Leonardo, which has made its way into Italy, the United Kingdom, Poland and the USA in all its business areas (Helicopters; Aircraft, Aerostructures, Electronics, Cyber & Security Solutions and Space) has seen from 2018 to today a progressive increase in the items of balance. In particular, i accounts 2022 are to be framed, as they told Leonardo, with sales above expectations and growing profitability. Above all, the performance of the companies drove the turnover Helicopters and Defense Electronicsboth in the European and in the US components.
“The positive performance achieved by Leonardo in 2022” underlined Profumo himself, “is the result of a long-term vision which has allowed the company to strengthen its competitiveness in an international scenario of great uncertainty. Industrial evolution, financial solidity, commercial growth on the markets, sustainability are at the origin of these results”.
Wanting to start the "long-term vision" that Profumo talks about from the moment he took office, the data show upward trends in various areas, so much so that Sipri (the Stockholm International Peace Research Institute) which draws up an annual ranking of the top 100 world producers in the defense sector, placed Leonardo at first place in the European Union by sector revenues (representing 68% of Leonardo's turnover) and al 12th place in the world.
- orders, spread across all areas of the business, which in 2018, the first year of the Profumo management, amounted to 15 billion, in 2022 they exceeded 17 billion, with a growth of over 20% compared to 2021, taking the portfolio beyond the 37 billion.
I revenues, which in 2018 amounted to 12,2 billion, last year they amounted to 14,7 billion thanks, in particular, to Helicopters and Electronics for Defense and Security. EBITDA which 5 years ago was 1.120 million, last year stood at 1.218 million, bringing profitability on sales (ROS) above 8%. Financial performance was particularly significant, with cash flow (FOC extension) which in 2018 was 336 million, in 2022 it rose to 539 million, with an increase of 158% compared to 2021.
The US paper: from reorganization to quotations
But in addition to the good performance, Profumo brings the fact that in recent years it has known how to weave good and intense weaves relations with the Americans and with the allies, so much so that they probably wouldn't understand a replacement for him. Not that American Defense is interested in this or that name, but it is a business issue: in the face of progressive global rearmament, the United States wants to be clear with whom to do business.
According to the 2022 budget, the United States, where Leonardo has more than 7.000 employees, they feed 27% of revenues. Just in the last few weeks the controlled have been overseas rearranged and united under a single company, the Leonardo Us Holding. With this reorganisation, the group was able to recover a loss from previous write-downs of almost 1,3 billion euros, attributed to Leonardo Us Holding. The effect was already seen in the parent company's 2022 net result of 1,701 billion euros (almost 10 times that of 2021), but the project is expected to be completed this year. Specifically, Leonardo provides that the companies Leonardo Drs, (defense electronics) e Leonardo US Corporation will own directly or indirectly all the American subsidiaries and both companies will report to Leonardo US Holding. Leonardo US Electronics is excluded from this structure, which for the moment will remain directly owned by Leonardo UK.
The great maneuvers also include the fusion of Israeli society Rada with Leonardo Drs, which automatically found itself listed at New York stock exchanges need Tel Aviv. To provide Leonardo Drs with an independent capital structure, as envisaged for the listed companies in the United States, a loan agreement for 500 million dollars was also signed with a pool of international banks.
Profumo attributed the positive performance achieved by Leonardo in 2022 precisely to the transactions with DRS. "Thanks to the significant cash generation and the disposals of the Leonardo DRS businesses, we have reduced debt," said Profumo. And “at the same time strengthened the core business through the purchase of 25,1% of Hensoldt and the consolidation of Rada in Leonardo Drs”.
Leonardo's other jewel for Europe and Italy: Mbda
Leonardo has several j and equity investments: ATR, Telespazio, Thales Alenia Space, Avio, Mbda.
The latter, the Italian subsidiary of the European missile manufacturer, has almost doubled the orders in 2022 and aims to keep them above the threshold of 1 billion euros in 2023. The group, which holds around 16% of the missile market in terms of orders and is the main operator in Europe with a 43% share, is controlled by the French Airbus and the British Bae Systems, both with 37,5% and Leonardo has the remaining 25%. “The acceleration is linked to a new attitude towards defense,” he said Lorenzo Mariani managing director of Mbda Italia referring to an "indirect" effect of the war underway in Ukraine.
Mariani did not comment on the hypothesis, but did not hide the company's talents: "I expect one fundamental thing from Leonardo's new leadership: that he treats Mbda like a jewel, that he understands that it is the only true European joint venture, that And a value for Europe and for its shareholders and from which it can draw not only substantial profits, but also a contribution to Italian sovereignty of which Leonardo is the highest representative at an industrial level".
Since 2017 Leonardo has hired 16.000 new people, 10.000 engineers
Since 2017 Leonardo has taken on board further 16.000 employees internationally, which translate into a growth in workforce of around 5.300 units, net of natural turnover.
In particular, there are 9.600 people engaged in Research and Development activities, with 62% of employees having a STEM degree (Science, Technology, Engineering and Mathematics), while there are well 10.000 engineers aeronautical, aerospace, electronic, mechanical, IT and telecommunications industries who work in the group. In addition, Leonardo continues to enhance professionalism: in 2021 alone it provided 1,6 million hours of training, activating 776 training courses.
New orders arriving
The other flagship of European defense is the consortium Euro Fighter in which Leonardo holds a 20% stake and to which it supplies 60% of the on-board electronics (“avionics”). Just these days we are talking about the possibility that the Spain want to sign a contract for 25 hunting Eurofighter “Typhoon”, having already purchased 20 last year. In addition the Bulgarian government last week signed a contract to purchase six choppers Leonardo's emergency room, deliveries of which are expected between 2023 and 2026.
