- Order Backlog came to € 45 billion. Book-to-Bill ratio at 1.3x
- Revenues and EBITA growth in line with expectations and the sustainable growth path envisaged in the Industrial Plan
- Net Result before extraordinary transactions € 273 million (+44.4% vs 1H2024)
- Improvement of Free Operating Cash Flow (FOCF), demonstrating the effectiveness of the actions undertaken
- Group Net Debt improves to € 2,173 million (-27.6% vs 1H2024)
(*) Not including the contribution from the Underwater Armaments & Systems (UAS) business (like-for-like perimeter)
(**) 2024 restated figure as a result of the revision of the KPI with reference to the valuation of strategic investments
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Leonardo’s Board of Directors, convened today under the Chairmanship of Stefano Pontecorvo, examined and unanimously approved 2025 first half results. “Execution of the Industrial Plan is progressing in line with the Group’s strategic priorities. First-half 2025 results confirm the Group’s solid industrial momentum, with a further reduction in debt, validating the effectiveness of the actions undertaken. Based on first half performance and growth expectations, we have revised our 2025 guidance upwards, setting new targets for orders, FOCF, and net debt. We are strengthening our competitive positioning across domestic and international markets, reaffirming our role as a leading player in the ongoing consolidation of the Defense industry. The development of joint ventures with Rheinmetall and Baykar is advancing, and the GCAP program has entered its operational phase. Recent M&A transactions in the cybersecurity domain mark another step forward in the expansion of our product portfolio, underscoring our commitment to inorganic growth“, stated Roberto Cingolani, Chief Executive Officer and General Manager of Leonardo.
1H2025 financial results
The good performance of the Group continued in the first six months of 2025, with the gradual strengthening of its competitive positioning in both domestic and international markets supported by a further growth of volumes and a solid profitability. The good performance of the period, compared with the same period of the prior year, is even more significant inasmuch as it does not include the contribution from the Underwater Armaments & Systems (UAS) business, which had been recognised under the Defence Electronics & Security sector until 2024 and sold to Fincantieri in early 2025.
In the first six months of 2025 New Orders reached €bil. 11.2 (+8.9% compared to the figure of the comparative period, +9.7% on a like-for-like perimeter), confirming the continuing strengthening of the core businesses as a result of the commercial successes and good positioning of the Group’s products, technologies and solutions, as well as the ability to effectively cover key markets in a market environment where demand for security remains high. The book-to-bill stood at 1.3.
Revenues came to €bil. 8.9 showing a significant increase (+11.7% compared to the figure of the comparative period, +12.9% on a like-for-like perimeter), and EBITA was €mil. 581 (+10.9% compared to the restated (*) figure of the comparative period, +15.0% on a like-for-like perimeter), in line with expectations and the sustainable growth path envisaged in the Industrial Plan of Leonardo.
Free Operating Cash Flow, negative for €mil. 408 as a result of the usual interim trend that is characterised by cash absorptions in the first part of the year, showed an improvement (+18.7% compared to the figure of the previous half year, +19.0% on a like-for-like perimeter) demonstrating the effectiveness of the actions undertaken. The FOCF performance and the consideration received as part of the sale of the UAS business, equal to about €mil. 446, result in a positive effect on the Group Net Debt, down by about 27.6% compared to 30 June 2024.
(*) The figure for the comparative period is presented in restated form as a result of the revision of EBITA, starting from the 2024 Financial Statements, with reference to the valuation of strategic investments.
Key Performance Indicators (KPIs)
(*) The 2024 figure is presented in restated form as a result of the revision of the KPI with reference to the valuation of strategic investments. Specifically, starting from the 2024 Financial Statements, the share of net result of strategic investees, which is already recognised within the Group’s EBITA as part of their valuation at equity, now no longer includes any non-recurring, extraordinary or non-routine items in the income statement; in line with Leonardo’s policies and the approach already applied to companies consolidated on a line-by-line basis, these items are deducted from EBITA in order to show profit margins that are not affected by volatility elements. The revision described above impacted also EBITDA and the performance indicators ROS and ROI, while it had no effects on other indicators.
As indicated above, following the finalisation of the sale to Fincantieri of the Underwater Armaments & Systems (UAS) line of business, occurred on 14 January 2025, the figures of the first six months of 2025 do not include the contribution from such business that, vice versa, was recognised within the Defence Electronics & Security sector until 2024. In order to make the Group’s operational performance more comparable, for some performance indicators we report below the figure of the comparative period – and the related change compared to the current period – excluding the contribution of the UAS business (like-for-like perimeter):
(*) 2024 restated figure as a result of the revision of the KPI with reference to the valuation of strategic investments.
2025 Guidance
The good performance of the Group continued in the first half of the year, with a gradual strengthening of its competitive position in both domestic and international markets, supported by further volume growth and solid profitability.
The increased demand for defence and security, linked to the geopolitical scenario, generates positive outlook for the defence sector.
In this context, based on the performance recorded in the six months to June and the revision of estimates for the second half of the year, in light of greater visibility on the prospects for order acquisition, the Group updates its full year 2025 Guidance as disclosed in March 2025 as follows:
- Increase in new order intake guidance from ca. € 21 billion to ca. € 22.25 – 22.75 billion, factoring in the acquisition of jumbo orders
- Upward revision of the FOCF guidance from ca. € 870 million to ca. € 920-980 million, as a result of good operating performance and cash advances related to additional orders
- Reduction of the Group’s Net Debt, from ca. € 1.6 billion to ca. € 1.1 billion thanks to the positive impact of stronger cash generation and the postponement to 2026 of some M&A transactions expected during the year
- The guidance in terms of revenues of approximately €18.6 billion and EBITA of approximately € 1,660 million are confirmed
This is summarised in the table below:
Based on USD/€ exchange rate at 1.08 and €/GBP exchange rate at 0.86
(1) Based on the current assessments of the impacts of the geopolitical situation also on supply chain, inflationary levels and the global economy, subject to any further significant effects.
(2) Assuming the increased dividend payments of €0.52 per share, M&A transaction of ca. €100 million, DRS shareholders remuneration, new leasing contracts and other minor movements.
Commercial performance
- New Orders reached €bil. 11.2, highlighting an increase compared to the first six months of 2024 (+8.9%, +9.7% on a like-for-like perimeter), driven by Defence Electronics & Security, especially the European component, and by the excellent performance of Aeronautics (+53.4% against the comparative period). The contribution to new orders from Space and Cyber & Security Solutions was also increasing. The level of new orders for the six months is equal to a book to bill (the ratio of New orders to Revenues for the period) of about 1.3.
- The Order Backlog came to €bil. 45 ensuring a coverage in terms of production exceeding 2.5 years.
Business performance
- Revenues (€bil. 8.9) increased compared to the first six months of 2024 (+11.7%) in all the business sectors, despite the change in the perimeter related to the sale of the UAS business (+12.9% on a like-for-like perimeter). Worth noting is the contribution from the Defence Electronics & Security, Helicopters and Aeronautics.
- EBITA (€mil. 581), increased significantly compared to the first six months of 2024 in almost all sectors (+10.9% against the restated figure), reflects the growth of volumes and the solid performance of the Group’s businesses. The period was particularly affected by the result of the Helicopters and the Defence Electronics and Security sectors, which more than offset the drop in Aeronautics, which was affected by the expected performance of the Aerostructures and of the strategic investee GIE ATR. An improvement was also reported by the Space sector, which started to benefit from the efficiency-improvement actions on the manufacturing segment of the Space Alliance. The good performance of the Group is even more evident if we exclude the contribution of the UAS business from the comparative figure (+15.0% on a like-for-like perimeter).
- EBIT (€mil. 432) was affected by the improvement of EBITA and reported an increase compared to the first half-year of 2024 (+10.8%). Non-recurring costs stood at a level close to that of the previous year and reflected the accruals for litigation on international legacy programmes, including the NH90 one.
- The Net Result before extraordinary transactions (€mil. 273, +44.4% compared to the first six months of 2024) benefitted from the performance of EBIT and from the improvement of the net financial costs.
- The Net Result (€mil. 542) showed a decrease against the comparative figure (€mil. 555) which included the capital gain (€mil. 366) recognised following the fair value measurement of the Telespazio group performed for the purpose of the line-by-line consolidation of the latter. The data for the first six months of 2025, equal to €mil. 542, included, in addition to the Net Result before extraordinary transactions, the capital gain recognised following the sale of the UAS business to Fincantieri, equal to about €mil. 283, partially offset by the costs of the disposals finalized in the previous periods.
Financial performance
- FOCF in the first six months of 2025, negative for €mil. 408, showed an improvement compared to the performance of the previous year’s comparative period (negative for €mil. 502, negative for €mil. 504 on a like-for-like perimeter), confirming the positive results reached thanks to the effect of initiatives to strengthen operational performance and collection cycle, a careful investment policy in a period of business growth with stringent priorities, an efficient financial strategy and the management of working capital. The figure, which is however impacted by the usual interim trend characterised by cash absorptions during the first part of the year, is also affected, compared with the first six months of 2024, by higher dividends received, higher investments and an acceleration in supplier payments to underpin the growth path.
- The net change in loans and borrowings included the repayment, occurred in March 2025, of the bonded loan of Leonardo S.p.a. issued in 2005 and amounting to €mil. 500, which reached its natural maturity date, partially offset by the drawing of the €mil. 260 Sustainability-Linked loan granted by the European Investment Bank (EIB).
The Group Net Debt, equal to €mil. 2,173, decreased by about €bil. 0.8 against June 2024 thanks to the strengthening of the Group’s cash generation and to the cash-in of the total amount of €mil. 446 arising from the sale of the UAS business.
Compared to 31 December 2024 (€mil. 1,795) the figure increased mainly as a result of the abovementioned FOCF performance, net of the effect of the abovementioned sale of the UAS business, in addition to the dividends paid for an amount of €mil. 327 (€mil. 296 of which related to Leonardo S.p.a., which, in line with that communicated on the occasion of the “2025-2029 Industrial Plan”, paid a dividend almost doubled compared to the 2024 data equal to € 0.52 per share in 2025 vs € 0.28 per share in 2024.
Changes in the Group Net Debt
Key performance indicators by Sector
Leonardo confirms its growth path in all core Sectors of its business. The business sectors are commented on below in terms of business and financial performance:
(*) 2024 restated figure as a result of the revision of the KPI with reference to the valuation of strategic investments.
(**) 2024 figure not including the contribution from the Underwater Armaments & Systems (UAS) business (like-for-like perimeter)