Leonardo Forecasts Robust 2026 Growth, Proposes Dividend Amid Defense Sector Upswing
ROME, March 12 (Reuters) – Italy's state-backed defense and aerospace conglomerate Leonardo announced on Thursday a bullish outlook for 2026, forecasting a sustained trajectory of expansion driven by rising global defense expenditures and a robust order book.
The group anticipates new orders to climb to approximately 25 billion euros ($28.85 billion), up from 23.8 billion euros in 2025. Revenues are projected to reach 21 billion euros, increasing from 19.5 billion euros last year. Core profitability, measured by earnings before interest, taxes, and amortization (EBITA), is expected to rise to 2.03 billion euros by year-end.
"Our strategic positioning and portfolio strength are fueling a clear growth path, marked by enhanced profitability and cash flow," the company stated. Reflecting this confidence, Leonardo's board proposed a dividend payout of 0.63 euros per share based on its 2025 performance.
The forecast aligns with a broader surge in European defense spending, spurred by geopolitical tensions. Analysts note Leonardo, a key player in aerospace, electronics, and cyber security, is well-placed to capitalize on contracts related to multinational programs and national security upgrades.
Market Voices
Marco Bianchi, Milan-based Portfolio Manager: "This isn't just a quarterly beat; it's a structural upgrade. The order guidance suggests Leonardo is securing its slice of the long-term defense budget reallocation across NATO allies. The dividend is a prudent signal of financial health."
Elena Conti, Defense Analyst at GeoStrategic Insights: "The numbers are solid, but the real test is execution. Supply chain bottlenecks and talent shortages remain industry-wide headwinds. Meeting these targets will require flawless operational performance."
Luca "Ray" Fontana, Independent Blogger & Activist: "More profits from the war machine. While shareholders toast to 0.63 euros, we should be asking what this 'growth' truly builds—security or perpetual conflict? The dividend feels like blood money wrapped in a corporate press release."
Sophie Reinhardt, Berlin-based European Policy Fellow: "Leonardo's outlook reinforces Europe's push for strategic autonomy in defense. Their growth is partly a bellwether for the continent's industrial capacity in a fragmenting world order."
($1 = 0.8666 euros)
(Reporting by Giulia Segreti; Editing by Alvise Armellini for Reuters)