Leonardo closes the first nine months of 2026 with a strong expansion of industrial and commercial activities, supported by international demand in the defense, aerospace, and security sectors. The board of directors, meeting on November 4 under the chairmanship of Francesco Macrì, unanimously approved the results as of September 30, which show new orders of 23.3 billion euros, up 27.8% compared to the same period in 2025, and revenues of 15.3 billion, up 14.2%. Even more marked is the improvement in operating profitability, with an EBITA of 1.3 billion euros, 37.7% higher than the 945 million recorded a year earlier.
The most significant figure concerns the order backlog, which reaches 60.4 billion euros, surpassing the 60 billion threshold for the first time and marking a 27.7% year-on-year increase. This result was also contributed by the consolidation of Iveco Group's defense activities, acquired through IDV, which added about 6 billion euros to the total backlog. The volume of orders ensures a production coverage of over 2.7 years and offers the group greater visibility on the industrial prospects of the coming years, in a phase characterized by increased defense investments and growing demand for integrated technologies.
Link to Strong increase in profitability and improved cash flowsStrong increase in profitability and improved cash flows
The growth of activities is reflected in the main economic indicators. Adjusted net profit reaches 812 million euros, compared to 466 million in the first nine months of 2025, with a 74.2% increase. The net accounting result stands at 792 million, up 7.8%, while EBIT rises to 1.1 billion euros, marking a 52.8% progress. Operating margin also improves, with ROS increasing from 7% to 8.5%, gaining one and a half percentage points. The trend confirms a greater ability to transform revenue growth into profitability, thanks to increased production volumes and improved program execution in various divisions.
A positive signal also comes from cash generation. Free Operating Cash Flow remains negative at 68 million euros, but shows an 84% improvement compared to the negative 426 million in the same period of 2025. Excluding the contribution of IDV activities, free operating cash flow is positive at 22 million, highlighting progress made in financial management and in containing the seasonal effects that characterize the sector. The group's net debt reaches 3.3 billion euros, compared to 2.3 billion in September 2025, mainly due to the outlay of about 1.6 billion for the acquisition of Iveco's defense activities.
Commenting on the results, CEO and General Manager Lorenzo Mariani emphasized how surpassing the 60 billion order backlog, along with revenue and EBITA growth in all sectors and improved cash flows, confirms the validity of the industrial strategy. The manager highlighted that financial solidity, the breadth of the technological offer, and the expansion of production capacity are the main development factors, specifying that the group will continue to invest to transform acquired orders into greater production and delivery capacity, improving process efficiency and program execution.
Link to Leonardo raises forecasts: orders expected at 29.5 billion in 2026Leonardo raises forecasts: orders expected at 29.5 billion in 2026
The strength of commercial collection has prompted Leonardo to update its order forecasts for the entire 2026 upwards. The new target is set at about 29.5 billion euros, compared to the 28.2 billion indicated in the previous July revision. The new estimate includes the contribution of IDV activities and reflects favorable prospects for the last quarter of the year, in which the group expects further progress in commercial acquisitions.
Other economic-financial targets already updated during the summer remain confirmed. Leonardo expects to close 2026 with revenues around 22.1 billion euros, an EBITA of about 2.21 billion, and a double-digit operating margin on sales. Free Operating Cash Flow is expected at 1.37 billion, while net debt should reduce to about 2.2 billion by the end of the year. The estimates are based on current assessments of the geopolitical context, inflation, supply chains, and the global economy's performance, and do not include the effects of the Raft acquisition by Leonardo DRS or any further extraordinary operations.
Link to Defense electronics driving growth, orders up 44%Defense electronics driving growth, orders up 44%
The Defense Electronics sector confirms itself as the main driver of the group's growth, with new orders of 11.1 billion euros, up 44.2% compared to the first nine months of 2025. Revenues reach 7.1 billion, marking a 22.9% increase, while EBITA rises to 895 million, with a 34.2% growth. Operating margin moves to 12.5%, supported by the positive performance of European electronics, Leonardo DRS's US activities, and the contribution of strategic joint ventures. From the second quarter, the sector also includes IDV activities, which strengthen the group's presence in land defense and expand available industrial capabilities.
Among the main orders acquired are the Kronos Ground Mobile High Power radars for the Italian Army's SAMP-T NG systems, the national BMD+ program for the development of advanced radar sensors against ballistic threats, and the supply of AESA RAVEN radars for Saab's Gripen aircraft. Leonardo has also obtained a contract with Abu Dhabi Ship Building for naval combat systems for the Kuwaiti Navy and an order for the first tranche of seven Centauro 8x8 armored vehicles for the Brazilian Army, as part of a program that could reach up to 98 vehicles.
The integration of IDV further expands the order portfolio in the land sector, also thanks to an additional order for 860 high-mobility tactical trucks for Romania and a contract for 34 SUPERAV amphibious armored platforms for Spain. In the United States, Leonardo DRS continues to benefit from military demand through programs like M-SHORAD for short-range air defense, electric propulsion systems for the future Columbia-class submarines of the US Navy, and technologies for South Korea's next-generation destroyers. The contribution of US activities remains positive, despite being affected in consolidated accounts by the unfavorable dollar-euro exchange rate.
Link to Helicopters, international demand grows: 120 deliveries in nine monthsHelicopters, international demand grows: 120 deliveries in nine months
The Helicopters division also records sustained commercial performance, with orders of 6.2 billion euros, up 27.7%, and revenues of 4.3 billion, 5.4% higher than the same period last year. EBITA reaches 347 million, with an 8.4% increase, while the operating margin rises to 8%. In the first nine months, 120 helicopters were delivered, compared to 115 in 2025, confirming the expansion of production activities and the growing contribution of support, maintenance, and training services.
Among the most significant commercial results is the contract with the UK Ministry of Defense for the supply of 23 AW149 helicopters under the New Medium Helicopter program. This is joined by orders for another 131 dual-use helicopters, mainly destined for international markets, compared to the 102 acquired in the same period last year. The group has also obtained the extension of the Integrated Merlin Operational Support program for the UK, strengthening its presence in military fleet support services. Government orders account for 72% of the sector's total orders, while the remaining 28% comes from the commercial market.
Link to Aeronautics, profitability almost doubled thanks to aerostructures recoveryAeronautics, profitability almost doubled thanks to aerostructures recovery
The Aeronautics sector shows one of the most significant improvements in profitability, with EBITA rising from 96 to 184 million euros, marking a 91.7% increase. Revenues reach 3 billion, up 7.3%, while new orders stand at 5.2 billion, with a 2.8% growth. Operating margin rises from 3.4% to 6.1%, benefiting mainly from the progressive recovery of Aerostructures activities, which continue to reduce losses thanks to the recovery in demand from major international aircraft manufacturers.
In the military aircraft sector, Leonardo has recorded new acquisitions related to M-346 trainers for Austria and the future aircraft of the Frecce Tricolori, as well as orders related to Eurofighter Typhoons for Germany, Italy, and Turkey. The contribution of the Global Combat Air Programme, aimed at developing the future air combat system, remains significant, while support and maintenance activities continue to represent an important component of revenues. On the production front, 39 wings were delivered for the F-35 program and six for the Typhoon, as well as two Eurofighter aircraft for Kuwait.
The recovery of civil aviation emerges from the increase in deliveries for the Boeing 787 and ATR programs. In the first nine months, Leonardo produced 63 fuselage sections and 55 stabilizers for the Boeing 787, compared to 51 and 38 respectively in the same period of 2025, while fuselages for the ATR program rose from 17 to 30. The ATR consortium also delivered 16 aircraft, compared to 11 the previous year. The increase in volumes has helped reduce losses in the Aerostructures division, which decreased from 135 to 88 million euros, and improve the ATR consortium's result.
Link to Cybersecurity and space, double-digit revenue growthCybersecurity and space, double-digit revenue growth
Leonardo's growth also involves Cyber & Security Solutions activities, which close the first nine months with revenues of 623 million euros, up 17.1%, and an EBITA of 56 million, 36.6% higher than in 2025. New orders reach 766 million, with a 9.4% increase, while ROS rises to 9%. The sector is mainly supported by Italian activities and contracts related to the digital transformation of public administration, including those within the National Strategic Hub. The growth in volumes and better absorption of fixed costs have favored the strengthening of margins.
The space sector also performs positively, with revenues of 777 million euros, up 10.7%, and an EBITA of 38 million, increased by 26.7%. Orders stand at 674 million, with a 2.9% progress, also thanks to contracts from the European Space Agency for the Next Generation Gravity Mission, Vigil, and AEOLUS programs. Telespazio's activities benefit from the development of satellite services, military programs, and initiatives related to Moonlight and geoinformation, while Thales Alenia Space continues its path of efficiency improvement started in 2025. The sector's evolution confirms the growing role of space infrastructures in the group's industrial and technological strategy.
Link to Acquisitions and industrial alliances at the heart of the strategyAcquisitions and industrial alliances at the heart of the strategy
Leonardo's expansion is not limited to organic growth but includes a series of acquisitions and partnerships aimed at strengthening international presence and expanding technological competencies. The most significant operation was completed on March 18, 2026, with the acquisition of Iveco Group's defense activities for about 1.6 billion euros, financed through available resources. The integration of IDV represents a strategic step to consolidate Leonardo's role in land defense and develop a more comprehensive offer of platforms and integrated systems.
During the year, the group also acquired the remaining 35% of GEM Elettronica for about 33 million euros and completed, through Leonardo UK, the purchase of the British company BeCrypt for about 37 million, strengthening capabilities in cybersecurity for classified environments. In the United States, Leonardo DRS has signed an agreement to acquire Raft, a company specializing in mission software based on open architectures, for an expected consideration of about 450 million dollars, with completion expected in the fourth quarter.
The industrial path also includes collaboration with Rheinmetall, the LBA Systems joint venture established with Baykar Technologies, and the agreement with Airbus and Thales to create a major European operator in the space sector. These initiatives are complemented by the GCAP program and the technological development of the Michelangelo Dome system, which are part of the strategy of integrating platforms and operational capabilities in various defense domains.
Mariani indicated that the integration and digitalization of platforms, industrial partnerships, and targeted acquisitions are central elements of the strategic plan. According to the CEO, initiatives like GCAP, collaborations with Rheinmetall and Baykar, the space alliance with Airbus and Thales, and the strengthening of Leonardo DRS in the United States represent concrete steps to consolidate the group's position in the international aerospace, defense, and security industry and support long-term growth.
Link to Financial solidity and ratings, agency assessments improveFinancial solidity and ratings, agency assessments improve
Industrial growth is accompanied by a strengthening of the financial profile recognized by the main international rating agencies. In April, Moody's improved Leonardo's rating from Baa3 to Baa2, confirming the positive outlook, while Standard & Poor's maintained the BBB rating, changing the outlook from stable to positive. Fitch confirmed the BBB rating with a stable outlook in June, recognizing the continuity of operational and financial improvement recorded in recent years.
During the period, the group also signed a new ESG-linked financing of 600 million euros and renewed the EMTN program for potential bond issues on the European market up to 4 billion euros, entirely unused as of September 30. A share buyback program was also launched, under which about one million shares were purchased for a total value of 47.2 million euros, mainly intended for long-term incentive plans and employee shareholding.
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