In a recent financial update, Leonardo SpA has showcased significant improvements in key performance indicators despite facing ongoing challenges in specific divisions. The company reported a 12.2% increase in new orders to EUR20.9 billion and a robust revenue growth of over 11%, reaching EUR17.8 billion. EBITA surged by 12.9% to EUR1.52 billion, reflecting enhanced operational efficiency. Free operating cash flow also saw a notable rise of 26.7%, amounting to EUR826 million. Notably, the company managed to reduce its net debt by approximately 22.7%, from EUR2.3 billion to EUR1.8 billion. However, certain segments like Aerostructures and Space faced difficulties due to external factors such as the Boeing crisis and challenges in the telco satellite segment. Despite these hurdles, Leonardo remains optimistic about future prospects, especially in defense spending within Europe.
Financial Highlights and Sector Performance
On February 20, 2025, Leonardo SpA unveiled its latest financial results, marking a period of substantial progress across various metrics. In the past year, the company secured an impressive order backlog exceeding EUR44 billion, driven by a surge in new orders valued at EUR20.9 billion. This represents a 12.2% increase from the previous year, signaling strong market demand for its products and services. Revenue climbed to EUR17.8 billion, up 11% from the prior year, underpinned by growth in multiple business units including Helicopters, Defense Electronics, and Cyber and Security Solutions.
The company's profitability also improved, with EBITA rising to EUR1.52 billion, a 12.9% increase from EUR1.35 billion in 2023. Return on sales edged up by 0.1 percentage points to 8.6%, demonstrating enhanced efficiency. Free operating cash flow reached EUR826 million, surpassing the initial guidance of EUR770 million by 26.7%. Net debt was trimmed significantly to EUR1.8 billion, down from EUR2.3 billion, highlighting effective financial management.
Despite these achievements, some divisions encountered setbacks. The Aerostructures division, impacted by the Boeing crisis, saw lower-than-expected delivery rates for the B787 fuselage, affecting profitability. Similarly, the Space division faced challenges in the telco satellite segment, leading to reduced EBITA. Nonetheless, other sectors performed well, with Helicopters generating EUR5.2 billion in revenue, up 11%, and Space revenue growing by about 30% to EUR906 million.
Looking ahead, CEO Roberto Cingolani highlighted potential opportunities arising from increased defense spending in Europe, particularly in countries near Russia’s border. While negotiations regarding Aerostructures are ongoing, the company remains committed to finding solutions to diversify from the B787 program. Additionally, Leonardo is exploring larger acquisitions in cybersecurity and space, aiming to expand its capabilities further.
From a reader's perspective, this report underscores the resilience and adaptability of Leonardo SpA in navigating complex market conditions. The company's ability to maintain strong financial performance while addressing sector-specific challenges is commendable. It also highlights the importance of strategic planning and diversification in sustaining long-term growth. As geopolitical tensions continue to influence defense spending, companies like Leonardo stand to benefit from increased investment in security and defense technologies.