Italian defence group Leonardo beats 2025 guidance, cuts debt (updated)
25/02/2026 06:38
Recasts, adds details and background throughout Group continues to benefit from growth in defence electronics Orders lifted by logistics support contract in Kuwait Debt down 44% on-year after sale of underwater unit Business update to be presented in Rome on March 12 By Giulia Segreti ROME, Feb 25 (Reuters) - Italian defence and aerospace group Leonardo LDOF.MI on Wednesday said it had beaten its 2025 financial targets, reporting significant growth in all key areas and a substantial reduction in debt, buoyed by strong demand for military and security equipment. The Rome-based company has been shifting its business away from traditional defence towards integrated security and technologies. Leonardo said it continued to benefit from robust growth in its defence electronics business in Europe and the U.S. through its unit, DRS . New orders rose 14.5% year-on-year in 2025 to 23.8 billion euros ($28.09 billion), surpassing the top end of the forecasted range of 22.75 billion euros. A sizeable logistics support contract in Kuwait and higher orders linked to the GCAP jet fighter programme boosted orders, it said. Total revenues over the year were up almost 11% to 19.5 billion euros, above the expected 18.6 billion euros and with a double-digit increase in all business sectors. The group's net debt at the end of last year was down 44% to 1 billion euros from 1.8 billion euros the previous year, mainly thanks to the sale of the UAS underwater business to Italian shipbuilder Fincantieri FCT.MI in early 2025. "We exceeded the challenging guidance, which had been already upgraded during the year. Such a performance represents the completion of the value-accretion path launched three years ago," Chief Executive Roberto Cingolani said in a statement. Leonardo raised its targets for orders, free cash flow and net debt in July after posting solid results for the first six months of the year. In previous years, the state-controlled group has pushed for broad alliances with European peers, accelerating its growth and contributing to the consolidation in the sector. Its board is due to approve an update to its business plan on March 11, with a presentation scheduled for the following day. ($1 = 0.8472 euros) (Reporting by Giulia Segreti in Rome; Editing by Alvise Armellini and Kate Mayberry) ((Giulia.Segreti@tr.com; +39.06.80307714;))