Leonardo's new CEO hits the accelerator: guidance raised, ROS double-digit pulled forward
Orders up 40%, partnerships multiplying, and a clear signal that 2026 is a year of acceleration.
LDO.MI · Earnings Call · 2026-07-31
A Change at the Top, a New Gear
Leonardo S.p.a. entered the second half of 2026 with a new CEO and a markedly stronger market position. In his first results call, Lorenzo Mariani stressed continuity and acceleration, while the CFO upgraded guidance across most lines. Orders for the first half surged roughly 40% year-on-year to about EUR 16 billion, supported by jumbo wins in helicopters and aircraft, and the group now expects a double-digit EBITA margin in 2026 — a full year ahead of plan.
We are in a new paradigm in our world and in our markets. Lesson learned from recent conflicts show us that we can have different wars in a single conflict...
The new CEO was blunt about the current state of the group: “Today, we are in a completely different and better group... not only if we compare it to what it was 20 or 25 years ago, but also comparing it to 5 years ago.” — Lorenzo Mariani · 2026-07-31 That better group is now showing it in the numbers. CFO Giuseppe Aurilio noted: “We see a strong commercial momentum and that is leading us also to upgrade our guidance.” — Giuseppe Aurilio · 2026-07-31 The upgrade is significant: orders to EUR 28.2bn, EBITA to EUR 2.21bn, and free operating cash flow to EUR 1.37bn, all while the balance sheet remains solid.
This outstanding performance is built on broad-based strength, with Defence Electronics leading the way. The division grew 20% in EBITA, with all four building blocks — Electronics Europe, DRS, and the strategic JVs (MBDA and Hensoldt) — contributing. Helicopters are on track for a 9.2% return on sales, and Aeronautics saw a near-doubling of EBITA as the aircraft components business clipped a series of new orders.
Accelerating the Industrial Plan
The core message from the new management is acceleration. The industrial plan is confirmed, but the pace is being stepped up across every dimension: execution, production capacity, technology, and partnerships. The CEO emphasised “We need to accelerate many of our initiatives because the world outside... is really going at a different pace.” — Lorenzo Mariani · 2026-07-31 That is already visible in the deal flow. The LBA (Leonardo-Baykar) joint venture has its first aircraft ready for delivery, the Rheinmetall JV is operational with a running contract, and the Bromo space consolidation is heading to antitrust filing. The Raft acquisition in the U.S. adds AI-software and C2 capabilities to DRS, directly feeding the Michelangelo air-defence programme.
On Michelangelo, the CEO was optimistic about progress: “I'm optimistic with signing the contract in the coming months.” — Lorenzo Mariani · 2026-07-31 This ties to the broader Defence spending wave that Leonardo is riding, and the company is clearly betting on a structural uptrend in European defence budgets.
Aerostructures: Still the Problem Child but Improving
Aerostructures remains the most watched turnaround. The division narrowed its H1 loss by EUR 50 million year-on-year, driven by higher B787 production rates (now 8 per month, targeting 10 by year-end) and better execution. However, the long-mooted partnership is still pending. In the Q&A, the CEO reiterated: “the plan is still the one of finding an agreement with the potential partner in order to build the JV... The plan is, in any case, unchanged.” — Lorenzo Mariani · 2026-07-31 The financial trajectory is clear: the company expects a further EUR 20 million loss in H2, but the acceleration in restructuring suggests breakeven could come sooner than the 2028-29 target.
The prior leadership had already flagged the importance of this asset. In the February call, Roberto Cingolani noted: “we are absolutely on schedule with the land defense systems.” — Roberto Cingolani, Chief Executive Officer · 2026-02-28 That same confidence is now visible in the numbers, as the broader portfolio is delivering. And on the order front, the 9-month performance last year was a precursor: “we are very pleased with what we have seen in the 9 months.” — Alessandra Genco, CFO · 2025-08-01 The H1 2026 results reinforce that trend.
Outlook: A Pivotal Year
Leonardo is no longer just promising; it is delivering. The combination of a new CEO with a clear acceleration mandate, strong order momentum, and a growing number of partnerships positions the group to exceed the industrial plan it set out two years ago. The double-digit ROS target pulled forward to 2026 is a strong signal, and the free cash flow guidance of EUR 1.37bn suggests cash generation is becoming a differentiator. With Cash generation improving, the company is gaining credibility to pursue further value-accretive moves, whether in trucks (with Rheinmetall or others) or in space via Bromo.
The market has taken notice, with the stock now trading on a stronger footing. For investors, the key question is whether the acceleration can be sustained — and the first half of 2026 provides a convincing answer.