Leonardo stock trades steady as defense orders underpin revenue growth

Leonardo (ISIN IT0003856405) stock is supported by rising revenue and operating profit as the Italian aerospace and defense group reports higher order intake and a sizeable backlog, according to the latest investor materials dated 13 March 2025.

Revenue up 20 percent

According to Leonardo investors information, the group generated revenue of approximately EUR 16.3 billion in fiscal 2024, up about 20 percent from around EUR 13.6 billion in 2023 as demand for defense electronics, helicopters and aircraft programs increased across European and export customers.

The same investor presentation shows that earnings before interest and taxes (EBIT) reached roughly EUR 1.15 billion in 2024, compared with about EUR 977 million in 2023, indicating the company expanded operating profit by more than EUR 170 million year on year despite cost inflation and supply chain constraints.

Leonardo also reported an order backlog of close to EUR 39 billion as of 31 December 2024, according to the investors data, giving the group multiyear visibility on future revenue streams across defense electronics, helicopters and aerostructures as governments increase long term defense investment.

Order intake and margin dynamics

In the same 2024 figures, Leonardo indicated total order intake of around EUR 18.1 billion, compared with about EUR 17.3 billion in 2023, as documented in the investors overview, underscoring that new contracts exceeded the groups annual revenue and continued to replenish the backlog.

Analysts following the European defense sector often focus on margins, and the investors materials show Leonardo reaching an EBIT margin of approximately 7.1 percent in 2024 versus about 7.2 percent in 2023, signaling a broadly stable profitability profile even as volumes expanded and the mix of projects shifted.

Net income attributable to the group in 2024 is reported in the investors documentation at around EUR 700 million, compared with roughly EUR 570 million in 2023, indicating that profit growth outpaced revenue growth as financing costs and taxes were managed alongside operating improvements.

The company also highlighted free operating cash flow of about EUR 900 million in 2024, according to the same source, following approximately EUR 650 million in 2023, reinforcing Leonardo capacity to fund investment, dividends and debt reduction while maintaining flexibility for possible strategic initiatives.

Helicopter program revenue

Leonardo helicopters division is a major contributor to group performance, and the investors data indicate that the helicopters segment generated revenue of about EUR 4.8 billion in 2024, compared with approximately EUR 4.3 billion in 2023, reflecting growth of roughly 12 percent driven by military and civil deliveries.

Within this segment, Leonardo sells models such as the AW139 for search and rescue, offshore and law enforcement customers, and the broader helicopter portfolio continues to benefit from fleet renewal programs and support services contracts that extend revenue beyond initial deliveries.

For investors, the helicopter segment figures matter because they illustrate how Leonardo balances shorter cycle civil demand with long term military contracts, and because segment margins and cash flow contribute significantly to the groups ability to invest in new platforms and technologies.

Leonardo stock and market context

Leonardo stock is listed on Borsa Italiana in Milan and is included in the FTSE MIB index, giving the shares a place in major Italian equity benchmarks and making the security a reference point for exposure to the domestic aerospace and defense sector.

According to typical market data portals for Italian equities, Leonardo shares recently traded in a range around EUR 18 to EUR 20 during early 2025, compared with levels near EUR 13 to EUR 15 observed in parts of 2024, indicating that the market capitalized some of the revenue and profit growth as well as the stronger order intake.

On this basis, Leonardo market capitalization stood in the vicinity of EUR 11 billion to EUR 12 billion in the first quarter of 2025, using the indicated share price levels and the publicly available share count, underlining the groups scale among European mid to large cap defense names.

For investors, the interaction between Leonardo operational metrics and its share price trajectory is central to assessing valuation, with revenue growth, backlog resilience and cash flow generation often weighed against geopolitical risk, program execution and competition from other defense groups.

Product focus and technology

Beyond helicopters, Leonardo operates across defense electronics, security systems and aerostructures, supplying radar, mission systems and avionics that are integrated into aircraft and naval platforms for domestic and international customers.

The company plays a role in several European collaborative programs, and its technology portfolio includes surveillance and fire control radar, electronic warfare suites and command and control solutions that respond to evolving requirements in air defense and multi domain operations.

These capabilities feed directly into the revenue and backlog figures reported in the investors materials, and they help explain why order intake has remained high as governments and agencies prioritize modernization and interoperability in their defense investments.

Leonardo stock valuation snapshot

Using the approximate 2024 net income of EUR 700 million as indicated in the investors data and a market capitalization of roughly EUR 11.5 billion in early 2025, Leonardo would be trading at a price to earnings ratio near 16.4 times, a level that sits within the observed range for European defense peers when adjusting for growth, leverage and program exposure.

Similarly, with EBIT of about EUR 1.15 billion and an enterprise value that incorporates net debt and pension obligations, investors monitor metrics such as EV to EBIT and EV to EBITDA to benchmark Leonardo against other aerospace and defense groups and to gauge how the market prices its backlog and technological assets.

While the exact multiples fluctuate with share price and balance sheet changes, the combination of higher revenue, expanding operating profit and strong free cash flow in 2024 underpins a valuation narrative that connects Leonardo stock performance to fundamentals rather than short term sentiment alone.