Leonardo stock gains order visibility after strong nine-month results

Leonardo reported strong results for the first nine months of 2026 and raised its full-year order outlook. In a press release issued on Thursday, November 5, the Italian aerospace and defence group said new orders reached EUR 23.3 billion, up 27.8 percent from the same period of 2025. The company also lifted its 2026 order guidance to EUR 29.5 billion from EUR 28.2 billion.

Leonardo stock traded at 51.67 euros on Lang & Schwarz at 12:13 CET on Tuesday, November 10, 2026.

Orders and backlog expand

Revenue for the nine-month period increased 14.2 percent to EUR 15.3 billion, while EBITA rose 37.7 percent to EUR 1.301 billion. Leonardo said growth extended across all business sectors, although foreign-exchange effects reduced the contribution from US components, particularly in Defence Electronics.

Adjusted net profit climbed 74.2 percent to EUR 812 million. Return on sales reached 8.5 percent, an improvement of 1.5 percentage points from September 2025. Free operating cash flow remained negative at EUR 68 million but improved 84 percent year over year. Excluding the Iveco Defence Vehicles contribution, free operating cash flow was positive at EUR 22 million.

The order backlog reached EUR 60.4 billion, up 28 percent and above EUR 60 billion for the first time. Leonardo said the consolidation of Iveco Defence Vehicles added about EUR 6 billion to the backlog, which now provides more than 2.7 years of production coverage. The company completed the EUR 1.6 billion acquisition of the defence business on March 18, 2026, and has included it in the consolidated accounts since that date.

Guidance focuses on execution

Leonardo confirmed its other 2026 targets. Revenue is expected to reach EUR 22.1 billion, EBITA EUR 2.21 billion, free operating cash flow EUR 1.37 billion and group net debt EUR 2.2 billion. The EBITA target includes a double-digit return-on-sales objective.

Chief Executive Officer and General Manager Lorenzo Mariani said the backlog, revenue and EBITA growth, together with the improvement in free operating cash flow, supported the group's growth strategy. He also pointed to production capacity, process efficiency and programme execution as priorities for converting the backlog into deliveries.

The company described integration and digitalisation, industrial partnerships and targeted acquisitions as key parts of its strategic plan. It specifically cited the GCAP programme, joint ventures with Rheinmetall and Baykar, a planned European space alliance with Airbus and Thales, the Michelangelo Dome programme, the IDV integration and Leonardo DRS's acquisition of Raft.

Investor focus shifts to delivery

The results improve Leonardo's visibility on future production, but the enlarged backlog also raises the importance of execution, delivery capacity and cash conversion. The IDV consolidation helped reported growth, while the like-for-like figures still showed increases of 22.4 percent for orders, 9 percent for revenue and 29.3 percent for EBITA, according to the company.

Italian equities remain linked to the broader FTSE MIB market.

Leonardo's next key test is the conversion of its order backlog into revenue, earnings and cash generation while it integrates IDV and advances its strategic partnerships. More news and analyses on Leonardo stock.

The underlying nine-month results and guidance figures are from Leonardo's press release dated November 5, 2026.