Leonardo stock gains order visibility after strong nine-month growth

Leonardo reported strong growth for the first nine months of 2026 on Thursday, November 5, with orders, revenue and profitability rising across its business sectors. In its results release, the Italian aerospace and defense group also raised its 2026 order guidance.

Leonardo stock traded at 48.19 euros on Lang & Schwarz at 11:41:55 CET on Friday, November 6, 3.95 percent below the Xetra close of 50.17 euros on Thursday, November 5. The comparison uses the same-currency closing price for the preceding Xetra session.

Orders strengthen the growth profile

New orders reached EUR 23.3 billion in January through September, an increase of 27.8 percent from the year-earlier period. The book-to-bill ratio was about 1.5, indicating that incoming business exceeded revenue during the period. Leonardo said the Defence Electronics business was a key contributor to the order performance.

The order backlog climbed to EUR 60.4 billion, up 28 percent year over year and above EUR 60 billion for the first time. The figure includes the consolidation of Iveco Defence Vehicles, which Leonardo acquired on March 18, 2026, for approximately EUR 1.6 billion. The group said the backlog provides production coverage of more than 2.7 years.

Profitability improves across divisions

Revenue rose 14.2 percent to EUR 15.3 billion, while EBITA increased 37.7 percent to EUR 1.301 billion. Leonardo's operating margin reached 8.5 percent, 1.5 percentage points above the level at September 30, 2025. On a like-for-like basis excluding Iveco Defence Vehicles, revenue grew 9 percent and EBITA advanced 29.3 percent.

Adjusted net income rose 74.2 percent to EUR 812 million, helped by the stronger operating result and lower net financial expenses. Free operating cash flow remained negative at EUR 68 million, but improved from the prior-year period. Before the Iveco Defence Vehicles consolidation, the measure was positive at EUR 22 million, according to the company.

Net debt stood at EUR 3.325 billion, an increase of 43.8 percent from a year earlier. Leonardo attributed the higher debt mainly to the cash outlay for the Iveco Defence Vehicles acquisition. The balance sheet effect remains an important consideration as the group expands production capacity to convert its backlog into deliveries.

Order target moves higher

Leonardo lifted its 2026 order guidance to approximately EUR 29.5 billion from approximately EUR 28.2 billion previously, including the Iveco Defence Vehicles contribution. The company maintained its other targets: revenue of approximately EUR 22.1 billion, EBITA of approximately EUR 2.21 billion with a double-digit operating margin, free operating cash flow of approximately EUR 1.37 billion and net debt of approximately EUR 2.2 billion.

Chief Executive Officer Lorenzo Mariani said the backlog, broader sector growth and improved cash flow supported the group's development path. He also pointed to production capacity, process efficiency and program execution as priorities for converting demand into sales and cash generation.

Investors can follow the real-time quote of Leonardo stock as the market weighs stronger operating momentum against acquisition-related debt and execution demands.

The Leonardo results and guidance follow a broader focus on defense spending, industrial capacity and order visibility in European aerospace and defense.

The FTSE MIB market environment provides the relevant Italian equity-market context without determining Leonardo's company-specific earnings outlook.

More news and analyses on Leonardo stock will track the group's fourth-quarter execution, cash generation and delivery of its enlarged backlog.