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Leonardo Spa
(LDO)
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Rating:72Outperform
Price Target:
€60.00
▲(14.81% Upside)
Action:Reiterated
Date:03/20/26
The score is driven primarily by strengthening financial performance (growth, improving profitability, and deleveraging) and supportive technical momentum. This is partially offset by only moderate profit-to-free-cash-flow conversion and a valuation that looks less compelling given the P/E and low dividend yield.
Positive Factors
Sustained Revenue Growth
Revenue expansion across 2023–2025 reflects durable demand for Leonardo’s platforms, electronics and services. Combined with long-term program deliveries and recurring aftermarket/service streams, this growth trend supports multiyear top-line visibility and lowers cyclicality risks.
Negative Factors
Weak FCF Conversion
Although operating cash flow and FCF improved to €2.0B and ~€1.0B respectively, free cash flow converting only half of net income and prior volatility limit discretionary capacity for buybacks, large dividends or rapid deleveraging, constraining durability of returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Revenue expansion across 2023–2025 reflects durable demand for Leonardo’s platforms, electronics and services. Combined with long-term program deliveries and recurring aftermarket/service streams, this growth trend supports multiyear top-line visibility and lowers cyclicality risks.
Read all positive factors
Leonardo Spa (LDO) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€31.70B
Dividend Yield1.14%
Average Volume (3M)3.05M
Price to Earnings (P/E)28.3
Beta (1Y)0.83
Revenue Growth10.11%
EPS Growth7.22%
CountryIT
Employees60,288
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.95
Shares Outstanding578,150,400
10 Day Avg. Volume2,674,697
30 Day Avg. Volume3,046,617
Financial Highlights & Ratios
PEG Ratio1.73
Price to Book (P/B)2.97
Price to Sales (P/S)1.45
P/FCF Ratio29.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€72.40Price Target Upside38.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.34
Revenue Forecast (FY)€22.18B
Leonardo Spa Business Overview & Revenue Model
Company Description
Leonardo S.p.A. is a prominent industrial and technology firm with operations spanning Italy, the United Kingdom, the rest of Europe, the United States, and other international markets. The company's core activities are centered around helicopters...
How the Company Makes Money
Leonardo makes money primarily by selling aerospace and defense products and by delivering long-term services tied to those products. Key revenue streams include: (1) Platform sales and programs: revenue from the design, manufacture, and delivery ...
Leonardo Spa Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.59B | 19.50B | 17.76B | 15.29B | 14.71B | 14.13B |
| Gross Profit | 1.83B | 1.73B | 1.45B | 1.22B | 1.22B | 1.05B |
| EBITDA | 2.37B | 2.51B | 2.38B | 1.71B | 1.80B | 1.43B |
| Net Income | 1.13B | 1.22B | 1.07B | 658.00M | 927.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 37.06B | 34.51B | 33.67B | 30.69B | 28.58B | 28.38B |
| Cash, Cash Equivalents and Short-Term Investments | 986.00M | 3.24B | 2.56B | 2.41B | 1.51B | 2.48B |
| Total Debt | 4.51B | 4.49B | 4.70B | 4.93B | 4.61B | 5.67B |
| Total Liabilities | 25.74B | 23.77B | 23.47B | 22.13B | 20.53B | 21.54B |
| Stockholders Equity | 9.67B | 9.56B | 8.99B | 7.80B | 7.18B | 6.43B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 977.00M | 646.00M | 404.00M | 523.00M | 190.00M |
| Operating Cash Flow | 2.27B | 1.99B | 1.54B | 1.19B | 1.28B | 805.00M |
| Investing Cash Flow | -2.73B | -605.00M | -753.00M | -262.00M | -924.00M | -604.00M |
| Financing Cash Flow | -349.00M | -611.00M | -678.00M | -12.00M | -1.40B | 30.00M |
Leonardo Spa Technical Analysis
Positive
52.26
Price Trends
51.33
Positive
53.48
Positive
52.85
Positive
Market Momentum
0.82
Negative
64.94
Neutral
78.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:LDO, the sentiment is Positive. The current price of 52.26 is above the 20-day moving average (MA) of 52.23, above the 50-day MA of 51.33, and below the 200-day MA of 52.85, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 78.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:LDO.
Leonardo Spa Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €4.09B | 15.94 | 17.62% | 1.35% | 6.69% | 9.29% | |
74 Outperform | €1.33B | 82.94 | 2.08% | 0.52% | 21.60% | 84.46% | |
72 Outperform | €31.70B | 28.27 | 13.19% | 1.21% | 10.11% | 7.22% | |
61 Neutral | €4.86B | 18.59 | 17.64% | ― | -0.60% | 39.15% | |
61 Neutral | €682.13M | 20.08 | 7.61% | 4.42% | -4.62% | -24.28% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
48 Neutral | €40.76B | 99.45 | 2.66% | 0.66% | 3.00% | -33.57% |
* General Sector Average
IT:LDO
Leonardo Spa
55.12
8.36
17.87%
IT:AVIO
Avio S.p.A.
29.03
4.63
18.98%
IT:FCT
Fincantieri S.p.A.
13.56
-3.22
-19.17%
IT:PIA
Piaggio & C. SPA
1.94
0.08
4.07%
IT:REY
Reply SPA
109.80
-19.98
-15.40%
IT:STMMI
STMicroelectronics NV
45.68
24.14
112.05%
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.