Leonardo SpA (FINMY) AI Stock Analysis

• Market Cap: $40.28B
• Dividend Yield: 1.04%
• Average Volume (3M): 22.98K
• Price to Earnings (P/E): 47.7
• Beta (1Y): 0.70
• Revenue Growth: 14.75%
• EPS Growth: 6.57%
• Country: US
• Employees: 60,288
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.56
• Shares Outstanding: 1,156,300,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 22,975
• PEG Ratio: -1.05
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 3.00
• P/FCF Ratio: 76.48
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: -9.21
• Enterprise Value/Ebitda: -10.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.3
• Revenue Forecast (FY): $24.48B

• Rating: 73 Outperform
• Price Target: $41.00 ▲(55.24% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is driven primarily by strengthening fundamentals (growth, improving profitability, and deleveraging) and a strong earnings-call backdrop with guidance beats and record cash flow, supported by positive technical trend signals. The main constraint is valuation, with a high P/E and low yield that reduce margin of safety.

Positive Factors

Revenue & Margin Expansion

Sustained double-digit revenue growth with expanding gross and net margins indicates structural demand across key segments and improved operational efficiency. This supports durable profit generation, stronger cash flows and reinvestment capacity over the next several quarters.

Cash Generation

Material free cash flow improvement and high cash conversion demonstrate the firm's ability to turn profits into liquidity. Strong cash generation underpins deleveraging, funds capex and R&D, and provides resilience to cyclical defense spending, improving long-term financial flexibility.

Backlog & Diversification

A EUR 47bn backlog provides multi-year visibility into revenues and supports sustained production and services demand. Coupled with diversified growth in helicopters, defense electronics and cybersecurity, this reduces single-market risk and underpins stable medium-term revenue profiles.

Negative Factors

High Absolute Debt Levels

Although leverage ratios have improved, substantial absolute debt can limit strategic optionality, increase interest expense sensitivity to rates, and constrain capital allocation. Persistent high debt raises refinancing and covenant risks that could influence investment and dividends.

Operational Losses in Aerostructures

Multi-year restructuring and production ramp challenges in aerostructures create recurring drag on margins and require cash to rectify. If not resolved, these operational weak spots can erode divisional profitability and pressure consolidated margins and free cash flow in the medium term.

NH90 Settlement Cash Outflow

A confirmed EUR 125m cash settlement is a concrete near-term hit to free cash flow and reduces available liquidity for investment or debt paydown. This one-off outflow tightens financial headroom and may delay deleveraging or capex plans, affecting medium-term financial flexibility.

Leonardo SpA Business Overview & Revenue Model

Company Description

Leonardo S.p.a., an industrial and technological company, engages in the helicopters, defense electronics and security systems, aeronautics, space, and other businesses in Italy, the United Kingdom, rest of Europe, the United States, and internationally. The company offers a range of helicopters for battlefield, combat, maritime, training, executive and private transport, medical and rescue, security, energy, and utility services, as well as provides support and training services. It also provides trainers, fighters, multi-mission transport, and multi-mission surveillance aircraft; command and controls, radars and sensors, optronics, communication systems, electronic warfare, avionics, air traffic management, and defense systems; and cyber security and resilience, critical communications, digitalization, and monitoring. In addition, the company offers geoinformation, satellite communications, ground systems, navigation, and satellite operations; interplanetary probes and orbiting modules; and robotics and drilling, electro-optics, laser transmitters, atomic clocks, photovoltaic panels, power distributors and amplifiers, attitude sensors, and orbital micropropulsion. Further, it engages in the production and assembly of major structural composite and metallic components for commercial and military aircraft, helicopters, and unmanned aircraft, as well as provides automation of airport baggage handling, mail sorting centers, and courier logistics hubs. The company was formerly known as Leonardo – Finmeccanica S.p.a. and changed its name to Leonardo S.p.a. in January 2017. Leonardo S.p.a. was founded in 1948 and is headquartered in Rome, Italy.

How the Company Makes Money

Leonardo primarily makes money by selling high-value aerospace and defense products, integrated systems, and long-term services to governments, armed forces, security agencies, and commercial operators. Key revenue streams typically include: (1) Product and platform sales—revenues from the design and manufacture of helicopters; airborne and naval/land defense electronics (e.g., avionics, mission systems, sensors); and aeronautics/aircraft-related programs and components, often delivered under multi-year procurement contracts. (2) Systems integration and turnkey programs—revenues from integrating sensors, mission systems, communications, command-and-control, and other subsystems into complete solutions for defense and security customers, where Leonardo is paid for engineering, delivery milestones, and final acceptance. (3) After-sales support and services—recurring revenues from maintenance, repair and overhaul (MRO), spare parts, logistics, upgrades, training, and lifecycle support for installed fleets and deployed systems; these contracts can extend for many years and contribute to visibility of future earnings. (4) Security and cyber offerings—revenues from providing cybersecurity, digital, and security solutions and related services to public-sector and critical-infrastructure customers, where income may come from project delivery plus ongoing managed services/support. (5) Collaborative programs and joint ventures—Leonardo participates in multinational programs and partnerships in which revenues depend on its workshare and deliveries under the program structure; specific partners and arrangements vary by program and are not exhaustively listed here. Profitability is influenced by contract mix (new platforms vs. services), program execution and milestones, defense budgets and procurement cycles, export demand, and the scale of the installed base that drives recurring support revenue.

Leonardo SpA Financial Statement Overview

Summary

Fundamentals show a multi-year recovery with strong revenue growth and improving operating profitability, plus a de-levering balance sheet. Offsetting factors are 2025 gross margin compression and only moderate cash conversion (free cash flow well below net income).

Income Statement

Revenue has expanded strongly over the period, with 2025 showing a step-up in sales versus prior years. Profitability is solid and improving, with net margin holding around the mid-single-digits and operating profit margin generally trending higher versus earlier years (notably above 2020–2021 levels). The main weakness is volatility in gross margin (down meaningfully in 2025 versus 2024), which suggests a less favorable mix or cost pressure despite higher revenue.

Balance Sheet

Leverage has improved, with debt-to-equity steadily declining from higher levels earlier in the period to below 0.5 in 2025, indicating a stronger capital structure. Equity has grown consistently, supporting balance-sheet resilience. Return on equity is healthy (low-teens recently), but not consistently rising year-to-year, and total debt remains sizeable, leaving some sensitivity to rate and refinancing conditions.

Cash Flow

Operating cash flow and free cash flow have improved materially since 2020, with free cash flow positive and growing in recent years. Cash conversion is acceptable but not strong: free cash flow is well below net income (roughly 35%–42% in recent years), implying working-capital or investment needs are absorbing cash. The positive trend is a strength, but cash generation still trails earnings quality expectations for a higher score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	18.73B	17.76B	15.29B	14.71B	14.13B
Gross Profit	1.51B	2.02B	1.65B	1.22B	1.05B
EBITDA	2.18B	2.25B	1.54B	1.65B	1.38B
Net Income	1.18B	1.07B	658.00M	927.00M	586.00M
Balance Sheet
Total Assets	34.51B	33.67B	30.69B	28.58B	28.38B
Cash, Cash Equivalents and Short-Term Investments	3.24B	2.56B	2.41B	1.51B	2.48B
Total Debt	4.49B	4.70B	4.93B	4.61B	5.67B
Total Liabilities	23.77B	23.47B	22.13B	20.88B	21.54B
Stockholders Equity	9.56B	8.99B	7.80B	7.18B	6.43B
Cash Flow
Free Cash Flow	734.00M	646.00M	404.00M	523.00M	190.00M
Operating Cash Flow	1.91B	1.54B	1.19B	1.28B	805.00M
Investing Cash Flow	-581.12M	-753.00M	-262.00M	-924.00M	-604.00M
Financing Cash Flow	-586.89M	-678.00M	-12.00M	-1.40B	30.00M

Leonardo SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINMY, the sentiment is Positive. The current price of 26.41 is below the 20-day moving average (MA) of 35.07, below the 50-day MA of 34.07, and below the 200-day MA of 30.00, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FINMY.

Leonardo SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NOC	77 Outperform	$100.33B	19.57	26.50%	1.55%	-0.14%	72.35%
LHX	75 Outperform	$65.90B	47.45	8.28%	1.61%	2.83%	47.00%
GD	74 Outperform	$93.50B	21.58	17.57%	1.73%	11.86%	17.39%
LMT	74 Outperform	$144.36B	22.26	80.53%	2.77%	2.88%	-35.15%
FINMY	73 Outperform	$40.28B	47.75	9.13%	1.04%	14.75%	6.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$153.24B	74.05	-94.94%	―	10.19%	-6.03%