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Leonardo SpA (FINMY)
:FINMY
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Leonardo SpA
(OTC:FINMY)
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Rating:76Outperform
Price Target:
$33.00
▲(12.86% Upside)
Leonardo SpA's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company has shown robust growth in revenue and profitability, along with effective debt reduction. However, technical analysis indicates short-term bearish momentum, and the stock's valuation appears high, which moderates the overall score.
Leonardo SpA (FINMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.81B
Dividend Yield1.17%
Average Volume (3M)19.12K
Price to Earnings (P/E)26.2
Beta (1Y)0.66
Revenue Growth14.75%
EPS Growth6.57%
CountryUS
Employees60,288
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.18
Shares Outstanding1,156,300,800
10 Day Avg. Volume0
30 Day Avg. Volume19,123
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.67
Price to Sales (P/S)0.85
P/FCF Ratio23.24
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.07
Revenue Forecast (FY)$22.23B
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:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in orders, revenue, and profitability across multiple divisions, including defense electronics and helicopters. The company also demonstrated significant debt reduction and strategic partnerships. However, challenges remain in the Aerostructures and ATR segments, and the NH90 settlement poses a future cash flow concern.Q3-2025 Updates
Positive Updates
Strong Order and Revenue Growth
New orders increased by 24.3% year-over-year, reaching over EUR 18 billion. Revenue grew by 12.4% to EUR 13.4 billion.
Significant EBITDA Improvement
EBITDA grew by 22.7% to EUR 945 million, up from EUR 770 million last year.
Reduction in Net Debt
Net debt decreased by 25.9%, showing a strong financial position.
Record Backlog and Upgraded Credit Rating
Operating off a record backlog of EUR 47 billion, with a recent credit rating upgrade from Fitch.
Helicopter Division Growth
Helicopter revenues increased by 13% to EUR 4.1 billion, with an 18% increase in EBITDA.
Defense Electronics Performance
Strong growth in orders, volumes, and profitability; revenues up 13% at EUR 3.5 billion.
Cybersecurity Expansion
Cyber orders up 20%, revenues up 19%, and EBITDA up 86%.
Strategic Initiatives and Partnerships
Announced collaborations, such as with Airbus and Thales, and strategic plans like the Michelangelo Dome.
Negative Updates
Challenges in Aerostructures
Aerostructures showed losses in EBITDA with a negative $135 million, excluding ATR. Challenges in ramping up production levels.
ATR Losses
ATR's contribution was negative $34 million due to supply chain constraints.
NH90 Settlement Impact
The NH90 settlement will result in a cash outflow of EUR 125 million, impacting 2026 free cash flow.
Company Guidance
In the third quarter of 2025, Leonardo reported a robust performance with significant year-over-year growth across various financial metrics. New orders increased by 24.3%, surpassing €18 billion. Revenues climbed by 12.4% to reach €13.4 billion, while EBITDA rose by 22.7% to €945 million, up from €770 million the previous year. The return on sales improved by 0.6 percentage points to 7%, and free operating cash flow saw a 22.3% boost. Additionally, the company successfully reduced its net debt by 25.9%. This period highlighted strong performances across all divisions, with no single product or geographic spike affecting overall results. The electronics segment showed solid order intake, and the company experienced strong revenue growth in the helicopter sector, driven by defense and governmental contracts.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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| 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
Negative
29.24
Price Trends
29.82
Negative
28.84
Negative
27.01
Negative
Market Momentum
-0.80
Positive
34.63
Neutral
2.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINMY, the sentiment is Negative. The current price of 29.24 is above the 20-day moving average (MA) of 28.71, below the 50-day MA of 29.82, and above the 200-day MA of 27.01, indicating a bearish trend. The MACD of -0.80 indicates Positive momentum. The RSI at 34.63 is Neutral, neither overbought nor oversold. The STOCH value of 2.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINMY.
Leonardo SpA Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $91.34B | 21.91 | 17.78% | 1.74% | 11.86% | 17.39% | |
76 Outperform | $29.81B | 26.20 | 11.69% | 1.17% | 14.75% | 6.57% | |
75 Outperform | $80.72B | 20.30 | 26.15% | 1.54% | -0.14% | 72.35% | |
70 Outperform | $104.37B | 25.18 | 62.78% | 2.92% | 2.88% | -35.15% | |
70 Neutral | $51.69B | 29.67 | 9.13% | 1.74% | 2.83% | 47.00% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
44 Neutral | $136.15B | ― | ― | ― | 10.19% | -6.03% |
* Industrials Sector Average
FINMY
Leonardo SpA
26.24
13.13
100.15%
BA
Boeing
182.44
30.04
19.71%
GD
General Dynamics
341.07
64.44
23.29%
LHX
L3Harris Technologies
276.33
34.61
14.32%
LMT
Lockheed Martin
452.41
-58.95
-11.53%
NOC
Northrop Grumman
569.42
88.77
18.47%
Leonardo SpA Corporate Events
Leonardo SpA Reports Strong 9M 2025 Performance
Nov 6, 2025
Leonardo SpA is a prominent player in the Aerospace, Defence, and Security sectors, known for its advanced technological solutions and strategic collaborations across Europe and beyond.
Leonardo SpA Reports Robust Growth Amid Challenges
Aug 6, 2025
Leonardo SpA’s recent earnings call showcased a positive sentiment, driven by substantial growth in orders and revenues, alongside successful strategic acquisitions. The company reported strong performances in key segments such as Defence Electronics and Helicopters. However, challenges persist in the Aerostructures and ATR joint ventures, compounded by uncertainties regarding tariff impacts.
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.