Leonardo SpA (FINMY) AI Stock Analysis

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Leonardo SpA

(OTC:FINMY)

Rating:76Outperform

Price Target:

$31.00

▲(10.60% Upside)

Leonardo SpA's strong financial performance and positive earnings call guidance are the primary drivers of its stock score. While technical indicators and valuation suggest caution, the company's strategic initiatives and improved financial metrics provide a solid foundation for future growth.

Leonardo SpA (FINMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$32.48B

Dividend Yield1.25%

Average Volume (3M)11.35K

Price to Earnings (P/E)28.6

Beta (1Y)0.59

Revenue Growth14.75%

EPS Growth6.57%

CountryUS

Employees60,288

SectorIndustrials

Sector Strength76

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.12

Shares Outstanding1,156,300,800

10 Day Avg. Volume8,984

30 Day Avg. Volume11,350

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.12

Enterprise Value/Revenue3.49

Enterprise Value/Gross Profit28.61

Enterprise Value/Ebitda19.62

Forecast

1Y Price Target

$31.00

Price Target Upside10.60% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Leonardo SpA Business Overview & Revenue Model

Company DescriptionLeonardo SpA (FINMY) is a global high-tech company specializing in aerospace, defense, and security sectors. With a strong focus on innovation, the company offers a wide range of products and services, including military and commercial aircraft, helicopters, unmanned systems, cyber security solutions, and advanced electronics. Leonardo operates in various international markets, providing integrated solutions and services to governments, military organizations, and commercial clients.

How the Company Makes MoneyLeonardo SpA generates revenue through multiple channels, primarily by delivering defense and aerospace products and services to both governmental and commercial customers. Key revenue streams include the sale of military aircraft, helicopters, and defense systems, as well as maintenance, repair, and overhaul (MRO) services. Additionally, the company benefits from long-term contracts and partnerships with various governments and defense agencies, which provide a stable income source. Strategic collaborations and joint ventures with other defense contractors also enhance its market position and contribute to its earnings, while ongoing investments in research and development help to drive innovation and maintain a competitive edge in the high-tech sector.

Leonardo SpA Earnings Call Summary

Earnings Call Date:Jul 30, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 05, 2025

Earnings Call Sentiment Positive

The call detailed strong financial performance with notable growth in orders and revenues, driven by strategic initiatives and acquisitions. However, challenges in the Aerostructures division and ATR supply chain constraints posed concerns. Overall, the positive aspects and strategic direction outweigh the challenges.

Q2-2025 Updates

Positive Updates

Record Orders and Revenue Growth

Orders increased by 9.7% to EUR 11.2 billion, and revenues grew by 12.9% to EUR 8.9 billion. Free operating cash flow increased by 19%, and net debt improved by 27%.

Capacity Boost Initiative

A comprehensive plan to increase capacity and efficiency across key divisions without significant immediate capital investment, focusing initially on efficiency improvements.

Iveco Defence Acquisition

Leonardo announced the acquisition of Iveco Defence, with a strategic focus on expanding land defense capabilities.

Cybersecurity Growth

Cybersecurity orders reached EUR 1 billion in 2025, surpassing the original target set for 2026.

Negative Updates

Aerostructures Challenges

Aerostructures experienced a revenue decrease to EUR 334 million and an increased EBITA loss of EUR 96 million due to production slowdowns.

Supply Chain Constraints in ATR

ATR faced performance issues primarily due to supply chain constraints, impacting financial results.

Company Guidance

In the recent call, Leonardo's CFO, Alessandra Genco, and CEO, Roberto Cingolani, provided comprehensive guidance for the fiscal year 2025. They announced an increase in order intake guidance from EUR 21 billion to a range between EUR 22.25 billion and EUR 22.75 billion, reflecting a 7% growth. The free operating cash flow target was also raised by 9%, from EUR 870 million to between EUR 920 million and EUR 980 million. Key metrics showed positive trends, with orders up by 9.7% to EUR 11.2 billion, revenues rising 12.9% to EUR 8.9 billion, and EBITA increasing by 15% to EUR 581 million. Leonardo reported a significant 27% improvement in net debt and a 19% growth in free operating cash flow. The company attributed these results to an efficiency plan and strategic initiatives, including mergers and acquisitions in cybersecurity and defense sectors. The guidance reflects confidence in maintaining robust order intake and cash flow, supported by strategic acquisitions and capacity enhancements.

Leonardo SpA Financial Statement Overview

Summary

Leonardo SpA exhibits robust financial performance with strong revenue and profit growth, improved profitability margins, and efficient cash flow management. Despite a high debt load, the company has improved its leverage ratios and return on equity. Continued focus on managing debt levels and sustaining cash flow growth will be crucial for maintaining financial stability.

Income Statement

Very Positive

Leonardo SpA has demonstrated strong revenue growth with a 16.15% increase from 2023 to 2024. The gross profit margin improved to 11.35% in 2024, up from 10.79% in 2023. The net profit margin has also increased significantly to 6.05% in 2024 from 4.30% in 2023, indicating enhanced profitability. However, EBIT margin data for 2024 is unavailable for further analysis.

Balance Sheet

Positive

The company maintains a sound equity base with an equity ratio of 26.71% in 2024, up from 25.42% in 2023, reflecting stable financial health. The debt-to-equity ratio improved to 0.52 in 2024 from 0.63 in 2023, suggesting reduced leverage. Return on equity increased to 11.95% in 2024 from 8.44% in 2023, indicating better returns to shareholders. However, the overall debt levels remain significant, which could pose risks.

Cash Flow

Very Positive

Leonardo SpA's free cash flow grew by 59.90% year-over-year, signaling strong cash generation capabilities. Operating cash flow to net income ratio is 1.43, indicating efficient conversion of income to cash. Additionally, the free cash flow to net income ratio increased, reflecting improved cash profitability. Nevertheless, fluctuations in capital expenditures could impact future cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.45B	17.76B	15.29B	14.71B	14.13B	13.41B
Gross Profit	1.28B	2.02B	1.65B	1.22B	1.05B	1.03B
EBITDA	1.86B	2.25B	1.54B	1.65B	1.38B	1.22B
Net Income	519.00M	1.07B	658.00M	927.00M	586.00M	241.00M
Balance Sheet
Total Assets	32.70B	33.67B	30.69B	28.58B	28.38B	27.07B
Cash, Cash Equivalents and Short-Term Investments	1.81B	2.56B	2.41B	1.51B	2.48B	2.21B
Total Debt	4.25B	4.70B	4.93B	4.61B	5.67B	5.70B
Total Liabilities	22.57B	23.47B	22.13B	20.88B	21.54B	21.44B
Stockholders Equity	9.00B	8.99B	7.80B	7.18B	6.43B	5.27B
Cash Flow
Free Cash Flow	627.00M	646.00M	404.00M	523.00M	190.00M	-36.00M
Operating Cash Flow	1.90B	1.54B	1.19B	1.28B	805.00M	275.00M
Investing Cash Flow	-197.00M	-753.00M	-262.00M	-924.00M	-604.00M	-438.00M
Financing Cash Flow	-80.00M	-678.00M	-12.00M	-1.40B	30.00M	460.00M

Leonardo SpA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price28.03

Price Trends

50DMA

27.46

Positive

100DMA

27.15

Positive

200DMA

21.99

Positive

Market Momentum

MACD

0.05

Negative

RSI

54.45

Neutral

STOCH

77.77

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 28.03 is above the 20-day moving average (MA) of 27.37, above the 50-day MA of 27.46, and above the 200-day MA of 21.99, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 77.77 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

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	79 Outperform	$86.66B	21.48	17.91%	1.79%	11.85%	16.12%
RTX	76 Outperform	$213.59B	34.33	10.13%	1.64%	15.44%	164.00%
FINMY	76 Outperform	$32.48B	28.62	11.69%	1.25%	14.75%	6.57%
LMT	71 Outperform	$104.53B	25.12	73.06%	2.87%	1.09%	-35.50%
NOC	71 Outperform	$84.91B	21.57	26.50%	1.45%	-0.65%	77.20%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
BA	53 Neutral	$177.57B	―	-162.23%	―	2.41%	-193.57%

* Industrials Sector Average

Performance Comparison

FINMY

Leonardo SpA

28.03

15.45

122.81%

Boeing

235.62

64.91

38.02%

General Dynamics

325.46

34.91

12.02%

LMT

Lockheed Martin

454.47

-95.02

-17.29%

NOC

Northrop Grumman

586.61

81.91

16.23%

RTX

159.84

41.37

34.92%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025