Leonardo Projects Growth Amid Surge in European Defense Spending
Leonardo has raised its 2026 financial guidance following a strong first half and plans further acquisitions to capitalize on increased defense spending in Europe. The company reported a 45% rise in new orders, now estimating full-year orders at 28.2 billion euros.
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Leonardo has increased its 2026 order, profit, and cash flow guidance, attributing this to a robust first half of the year. The company anticipates pursuing more acquisitions to support long-term growth, particularly in light of heightened defense demands stemming from geopolitical tensions.
It completed a €1.6 billion acquisition of Iveco Defence Vehicles and its U.S. subsidiary, Leonardo DRS, agreed to acquire Raft for $450 million. For 2026, Leonardo expects new orders to reach 28.2 billion euros, reflecting a 45% increase in the first half of the year.
The company is focusing on expanding its capabilities in AI and mission software while navigating a record order backlog that has risen 30% year-on-year. As defense spending continues to escalate, Leonardo's strategic moves position it well to leverage market opportunities, though investor concerns over production capacity persist.
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