Leonardo Q1 Financial Results: Rome, Italy – Global aerospace and defense giant Leonardo (LDOF.MI) Thursday announced a strong start to 2025, with its first-quarter results showcasing significant growth in new orders, revenues, and profitability. The company’s Board of Directors unanimously approved the positive figures, reinforcing the effectiveness of its ongoing Industrial Plan and bolstering confidence in its future outlook.
For the three months ending March 31, 2025, Leonardo reported new orders reaching a robust €6.9 billion, marking a substantial 20.6% increase compared to the same period last year (excluding the contribution of the divested Underwater Armaments & Systems – UAS – business). This surge in orders underscores the continued strengthening of Leonardo’s core businesses, driven by successful commercial activities and the strong positioning of its diverse portfolio of products, technologies, and solutions in a high-demand security environment.
Revenues also demonstrated impressive growth, climbing to €4.2 billion, a 14.9% increase year-over-year (excluding UAS). This growth aligns with the sustainable expansion trajectory outlined in Leonardo’s Industrial Plan, indicating the company’s ability to effectively translate its strong order book into tangible sales.
READ: Rheinmetall Rides Defence Boom: Q1 Operating Profit in Defence Nearly Doubles as Sales Surge 46%
Leonardo M-346.
READ: MRSAM India Eco-System Summit Highlights India’s Push for Self-Reliance in Missile Defence
Profitability also saw a significant uplift, with EBITA reaching €211 million, a notable 17.9% increase compared to the restated figure for the first quarter of 2024. This improvement reflects enhanced operational efficiency and the positive impact of the company’s strategic initiatives.
While the Free Operating Cash Flow (FOCF) stood at a negative €580 million, this figure represents a 7.6% improvement compared to the same period last year. Leonardo attributed this typical first-quarter cash absorption to interim trends and highlighted that the improved figure demonstrates the effectiveness of the actions undertaken to manage cash flow. Furthermore, the company noted that the first tranche of payment (€287 million) received from Fincantieri for the UAS business sale positively impacted the Group’s net debt.
C-27J Spartan Tactical Airlifter.
READ: DEFEA 2025: India’s Bharat Forge Targets European Market with Advanced MArG 155mm Howitzers
Leonardo‘s order backlog now exceeds the €46 billion threshold, providing a solid foundation for future revenue generation. The company’s book-to-bill ratio stands at a healthy 1.7x, signifying strong commercial performance with new orders significantly outpacing revenues.
The company also reported a Net Result before extraordinary transactions of €115 million, a substantial 23.7% increase compared to the first quarter of 2024.
READ: India Bolsters Air Power with $7.32 Billion Light Combat Helicopter Order
2025 Guidance Reaffirmed
Based on these strong first-quarter results, Leonardo’s CEO and General Manager, Roberto Cingolani, confirmed the company’s guidance for the full year 2025 and its medium-to-long-term targets.
“We are continuing the execution of our Industrial Plan,” stated Cingolani. “The first-quarter results, along with the rating upgrade by Standard & Poor’s and the outlook revision by Moody’s, further confirm the positive market reception of the initiatives undertaken and the Group’s strategic outlook. We, therefore, reaffirm our 2025 guidance and our medium-to-long-term targets.”
READ: India Aircraft Major HAL Navigates Supply Chain Issues, Achieves $3.64 Billion USD Revenue
Strategic Developments Underway
Cingolani also highlighted key strategic developments during the first quarter, including the signing of a Memorandum of Understanding with Baykar Technologies for the development of unmanned technologies, aimed at strengthening Leonardo’s position in the international competitive landscape. Additionally, the finalization of the establishment of Leonardo Rheinmetall Military Vehicles with Rheinmetall was noted, a move to operationalize a new European hub for military combat vehicle development and production.
Furthermore, the working group dedicated to the implementation of the “Capacity Boost” initiative has elaborated the plan’s development guidelines, with a presentation expected by the summer.
The first-quarter results demonstrate Leonardo’s strong momentum and its ability to capitalize on favorable market dynamics. The significant growth in orders, revenues, and underlying profitability, coupled with the reaffirmed guidance, paints a positive picture for the Italian aerospace and defense giant as it continues to execute its strategic roadmap. Investors will likely view these results favorably, anticipating continued growth and value creation.
READ: India’s GRSE Wins Additional MPV Order from German Firm
