Leonardo stock raises 2026 order guidance after strong nine-month growth

Leonardo's board approved the aerospace and defense group's results for the first nine months of 2026 on Wednesday, November 4, with the company publishing the figures on Thursday, November 5. In its Leonardo press release, the group said new orders reached 23.3 billion euros, up 27.8 percent from a year earlier.

Orders Raise The 2026 Bar

The stronger commercial performance prompted Leonardo to raise its 2026 order guidance to 29.5 billion euros from 28.2 billion euros. The company kept its other updated targets unchanged: revenue of 22.1 billion euros, EBITA of 2.21 billion euros, free operating cash flow of 1.37 billion euros and group net debt of 2.2 billion euros.

The order backlog exceeded 60 billion euros for the first time and stood at 60.4 billion euros at the end of September. Leonardo said the backlog, which includes approximately 6 billion euros from the Iveco Defence Vehicles business, provides more than 2.7 years of production coverage. The book-to-bill ratio for the period was approximately 1.5 times.

Profit Growth Spans Core Businesses

Revenue increased 14.2 percent to 15.3 billion euros, with growth across all business sectors. On a like-for-like basis excluding Iveco Defence Vehicles, revenue increased 9 percent. Leonardo said the reported figure was also affected by unfavorable currency translation in its US businesses, mainly Leonardo DRS.

EBITA rose 37.7 percent to 1.301 billion euros, lifting the return on sales to 8.5 percent. Adjusted net profit climbed 74.2 percent to 812 million euros, supported by stronger operating performance and lower net financial expenses. Free operating cash flow remained negative at 68 million euros but improved 84 percent year on year; excluding the Iveco business, it was positive at 22 million euros.

Execution Becomes The Next Test

Chief Executive Officer and General Manager Lorenzo Mariani said Leonardo must convert its substantial backlog into greater production and delivery capacity. He also pointed to process efficiency, program execution, industrial partnerships, the GCAP program, joint ventures with Rheinmetall and Baykar, and the integration of Iveco Defence Vehicles as strategic priorities.

Net debt rose 43.8 percent to 3.325 billion euros, reflecting the approximately 1.6 billion euro cash outlay for the Iveco Defence Vehicles acquisition. For investors, the higher order target strengthens visibility, while the debt increase and the need to expand delivery capacity keep execution central to the shares' outlook.

Leonardo stock traded at 49.58 euros on Lang & Schwarz at 12:05 CET on Friday, November 13, 2026.

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