Italian aerospace and defense group Leonardo has reported a 31% year-over-year jump in first-quarter 2026 new orders to €9 billion (about $10.6 billion), with profitability rising across its core business sectors. The company announced the results on May 6, 2026, while also confirming its full-year guidance.
Revenues grew 7% to €4.4 billion, while EBITA, Leonardo’s core profit measure, climbed 33% to €281 million, lifting group return on sales to 6.3% from 5.1% a year earlier. The adjusted net result increased 60% to €184 million. The order backlog reached 56.8 billion, up 23%, and equal to more than two and a half years of production, with a book-to-bill ratio of 2.0. Free operating cash flow remained negative at €411 million, an improvement of about 29% on the prior-year period that reflected the usual cash absorption in the first part of the year.
Aeronautics orders nearly double on fighters and trainers
Aeronautics was the standout, with orders rising 94% to €2.69 billion and the division swinging to an EBITA of €20 million, from a €3 million loss a year earlier. New orders included 12 M-346 jets for the Austrian Air Force; 20 Eurofighter Typhoons for the German Air Force; eight additional Typhoons for the Italian Air Force; and logistic support for the Italian Air Force’s C-27J Spartan transport fleet. Revenues grew 14% to €966 million, helped by a 48% surge in aerostructures on higher Boeing 787 work. During the quarter, Leonardo delivered 11 F-35 wings to Lockheed Martin, along with one wing and one fuselage for the Typhoon to the Eurofighter consortium.
Helicopters anchored by UK AW149 win
The helicopters division booked €2.68 billion in orders, led by the UK New Medium Helicopter contract for 23 AW149 helicopters for the British armed forces. The unit delivered 29 helicopters, measured against 28 a year earlier, for revenues of €1.31 billion and an EBITA of €76 million at a 5.8% margin.
Defense electronics margins expand
Defense electronics, Leonardo’s largest division, grew revenues 6.6% to about €2 billion, lifting its margin to 11.6% from 10.1%. Growth was led by the European electronics arm, up 14.7%, with orders including ballistic missile defense radars for the Italian Army. US subsidiary Leonardo DRS grew about 6% in dollar terms, but fell 4.9% once translated into euros, reflecting the weaker dollar.
Iveco deal and leadership transition
Leonardo finalized its €1.6 billion acquisition of Iveco Group’s defense business, known as IDV, on March 18, 2026, adding roughly €5.6 billion to the backlog. CEO Roberto Cingolani called the deal “a strategically relevant step that strengthens our positioning in land defence”. The unit was consolidated on the balance sheet at quarter end, but it does not yet contribute to earnings, with its profit and loss impact starting April 1, 2026. IDV is expected to add €1.2 billion in orders and €1.1 billion in revenues over April to December, on top of confirmed guidance. The results also followed an April 2026 upgrade of Leonardo’s credit rating to Baa2 by Moody’s.
The figures were the last to be presented by Cingolani, whose three-year term as chief executive ended in early May 2026. Leonardo’s incoming board has named Lorenzo Mariani as CEO and general manager.