Italy's Leonardo Q1 revenue rises 7% but misses estimates

Leonardo SpA

06/05/2026 06:32

Overview

Italy aerospace and defense firm's Q1 revenue grew 7% yr/yr, but missed analyst expectations

Adjusted net income for Q1 rose 60% yr/yr, driven by EBITA growth and lower net costs

Q1 orders rose 31% yr/yr, reflecting consolidation of IDV business

Outlook

Leonardo confirms 2026 guidance: revenues ca. €21 bln, EBITA ca. €2.03 bln

Company expects 2026 new orders of ca. €25 bln and FOCF of ca. €1.11 bln

2026 guidance excludes IDV business; IDV seen adding €1.1 bln revenue, €0.12 bln EBITA

Result Drivers

DEFENCE ELECTRONICS - Co said Defence Electronics sector contributed strongly to revenue and EBITA growth, despite negative exchange-rate effects

IDV CONSOLIDATION - Consolidation of IDV business drove increase in orders and backlog

LOWER NET COSTS - Adjusted net income benefited from EBITA growth and lower net financial costs

Company press release: ID:nBIA5b9hdC

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
EUR 4.40 bln
EUR 4.52 bln (5 Analysts)
Q1 Adjusted Net Income
EUR 184 mln
Q1 EBITA
EUR 281 mln
Q1 EBIT Margin
5.90%
Q1 Net Debt
EUR 3 bln
Q1 Orders
EUR 9 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the aerospace & defense peer group is "buy"

Wall Street's median 12-month price target for Leonardo SpA is €69.00, about 29.5% above its May 5 closing price of €53.28

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)