Leonardo SpA (FINMY)
OTHER OTC:FINMY
Top Page
Leonardo SpA
(OTC:FINMY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$41.00
▲(55.24% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
Leonardo SpA (FINMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.66B
Dividend Yield1.04%
Average Volume (3M)16.06K
Price to Earnings (P/E)47.7
Beta (1Y)0.77
Revenue Growth14.75%
EPS Growth6.57%
CountryUS
Employees60,288
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.56
Shares Outstanding1,156,300,800
10 Day Avg. Volume34,607
30 Day Avg. Volume16,061
Financial Highlights & Ratios
PEG Ratio-1.05
Price to Book (P/B)5.87
Price to Sales (P/S)3.00
P/FCF Ratio76.48
Enterprise Value/Market Cap0.89
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit-8.97
Enterprise Value/Ebitda-10.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.31
Revenue Forecast (FY)$24.66B
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 internati...
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) P...
Leonardo SpA Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial improvement story: double‑digit revenue and orders growth, meaningful EBITA expansion, record free operating cash flow above EUR 1 billion, and a large reduction in net debt. Strategic progress includes portfolio rationalization, digital/AI investments, scaled Cybersecurity and Space businesses, workforce transformation, and active M&A (Iveco, Aerostructures). Material challenges remain in Aerostructures (losses and turnaround work), translation/JV tax impacts (MBDA and DRS FX), TAS recovering, and execution/timing risk around the Iveco/Rheinmetall antitrust process and Aerostructures JV finalization. On balance, the highlights substantially outweigh the lowlights due to strong profitability, cash generation and balance sheet repair combined with clear strategic momentum.Positive Updates
Orders Growth and Strong Backlog
Orders of EUR 23.8 billion in 2025, up ~14% year‑over‑year (from EUR 20.8 billion); book‑to‑bill ~1.2 and total backlog at EUR 47 billion. Management noted 3‑year orders growth of ~38% (from ~EUR 17 billion to ~EUR 24 billion).
Negative Updates
Aerostructures Unit Losses and Uncertainty
Aerostructures reported an EBITA loss of ~EUR 130 million in 2025; free operating cash flow estimated negative ~EUR 0.2 billion stand‑alone. Q4 showed breakeven after release of contingencies (~EUR 15–20 million), but management expects Aerostructures to remain loss‑making into 2026 and investment/turnaround is required. JV negotiation and political/incentive steps remain outstanding (exclusivity to June).
Read all updates
Q4-2025 Updates
Positive
Negative
Orders Growth and Strong Backlog
Orders of EUR 23.8 billion in 2025, up ~14% year‑over‑year (from EUR 20.8 billion); book‑to‑bill ~1.2 and total backlog at EUR 47 billion. Management noted 3‑year orders growth of ~38% (from ~EUR 17 billion to ~EUR 24 billion).
Read all positive updates
Company Guidance
The call provided updated 2025 results that exceeded prior guidance and flagged that formal 2026 guidance will be presented on March 12: orders closed at EUR 23.8bn (vs guidance EUR 22–22.7bn; +14% YoY) with a backlog of EUR 47bn and a book‑to‑bill of 1.2; revenues were EUR 19.5bn (vs guidance EUR 18.6bn; +11% YoY); EBITA was EUR 1.75bn (vs guidance EUR 1.66bn; +18% YoY) with return on sales up to ~9.0% (from 8.4%, +60bps); free operating cash flow surpassed the EUR 1bn threshold (guidance EUR 0.92–0.98bn) with operating cash flow of EUR 2.3bn and capex around EUR 1bn; net debt fell to EUR 1.0bn (‑44% YoY, ‑67% from start of the mandate), group net position before JV/payables was roughly +EUR 1bn, and proceeds from the UAS sale were ~EUR 0.4bn. Division highlights included Cyber and Space at ~EUR 1bn orders each, Defense Electronics EBITA >EUR 1bn (ROS ~13%), Helicopter revenues +11% with 182 deliveries, Aerostructures FY loss ~EUR 130m but Q4 at breakeven aided by ~EUR 15–20m contingency release, cybersecurity +63% and space +90% YoY; longer‑term metrics: three‑year growth in orders ~+38% (to ~EUR 24bn), revenues +33% (to EUR 19.5bn), EBITA +44% (to EUR 1.75bn), FOCF +88% (to ~EUR 1bn), dividend up to EUR 0.52/sh (CAGR +275%) with a likely further increase (~+20% signaled), workforce 73k (+22%; net hires 17k; ~70% STEM, >30% women, 55% <30), R&D ~15% of revenues and innovation +20% YoY, and market cap cited near USD 34bn.Leonardo SpA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| 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
Negative
26.41
Price Trends
34.07
Negative
31.94
Positive
30.34
Positive
Market Momentum
-0.03
Positive
47.08
Neutral
52.14
Neutral
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 26.41 is below the 20-day moving average (MA) of 34.94, below the 50-day MA of 34.07, and below the 200-day MA of 30.34, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 52.14 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $97.57B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $67.61B | 35.53 | 8.28% | 1.61% | 2.83% | 47.00% | |
74 Outperform | $94.64B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $144.61B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
73 Outperform | $38.66B | 47.75 | 13.19% | 1.04% | 14.75% | 6.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $171.05B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
FINMY
Leonardo SpA
33.70
11.36
50.87%
BA
Boeing
217.80
56.98
35.43%
GD
General Dynamics
350.02
83.64
31.40%
LHX
L3Harris Technologies
361.97
151.23
71.76%
LMT
Lockheed Martin
628.50
178.55
39.68%
NOC
Northrop Grumman
687.47
183.27
36.35%
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.