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Leonardo SpA
(OTC:FINMY)
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Rating:74Outperform
Price Target:
$35.00
▲(17.73% Upside)
Action:Upgraded
Date:08/04/26
The score is driven primarily by strengthening financial performance and a clearly upbeat earnings outlook with upgraded guidance and strong order momentum. Technical indicators also support the setup, though near-term momentum looks stretched. The main restraint is valuation (higher P/E and modest yield), alongside execution and integration/cash-flow risks noted on the call.
Positive Factors
Order Backlog & Demand
A very large backlog and higher book‑to‑bill provide multi‑year revenue visibility and production planning leverage. Durable defense procurement and upgraded orders guidance underpin sustained top‑line and justify continued capacity and supplier commitments over the medium term.
Negative Factors
Aerostructures Losses
A persistently loss‑making aerostructures division is a structural drag on consolidated margins and cash flow until breakeven. Extended recovery timelines increase execution risk, absorb management attention and limit the pace at which group profitability and ROE normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Order Backlog & Demand
A very large backlog and higher book‑to‑bill provide multi‑year revenue visibility and production planning leverage. Durable defense procurement and upgraded orders guidance underpin sustained top‑line and justify continued capacity and supplier commitments over the medium term.
Read all positive factors
Leonardo SpA (FINMY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.76B
Dividend Yield1.04%
Average Volume (3M)24.92K
Price to Earnings (P/E)30.6
Beta (1Y)0.77
Revenue Growth18.14%
EPS Growth15.02%
CountryUS
Employees62,762
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.49
Shares Outstanding1,156,300,800
10 Day Avg. Volume23,587
30 Day Avg. Volume24,923
Financial Highlights & Ratios
PEG Ratio-1.05
Price to Book (P/B)5.87
Price to Sales (P/S)2.88
P/FCF Ratio76.48
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.35
Revenue Forecast (FY)$25.60B
Leonardo SpA Business Overview & Revenue Model
Company Description
Leonardo S.p.A. functions as a leading industrial and technology conglomerate, with its core activities encompassing the production of rotary-wing aircraft, defense electronics and security systems, aeronautics, and advanced space technologies. Th...
How the Company Makes Money
Leonardo makes money primarily by selling aerospace and defense products and by providing long-term services tied to those products. Key revenue streams include: (1) Product and system sales: revenue from the delivery of helicopters and aerospace/...
Leonardo SpA Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presented a materially improved financial and commercial picture: strong order intake (+40% y/y), revenue growth (+10% y/y), higher profitability (ROS to 7.6%, Q2 EBITA +30%), upgraded full‑year guidance (orders, EBITA, FOCF) and active M&A/portfolio expansion (Iveco IDV, Raft). At the same time, management was candid about near‑term cash impacts (NH90 settlement, higher taxes), integration and non‑recurring costs, an elevated net debt post‑acquisition, lingering losses in Aerostructures and regulatory/timing risks around large strategic transactions. Overall, positives (commercial momentum, margin improvement, guidance upgrades) outweigh the negatives, though execution and integration risks remain important to monitor.Positive Updates
Strong Order Momentum
Orders up ~40% year‑over‑year in H1 2026 (H1 orders ~EUR 16bn); total backlog ~EUR 59bn (including Iveco). Book‑to‑bill improved to 1.6 (vs 1.3 in 2025). Guidance for full‑year orders upgraded from ~EUR 26bn to EUR 28.2bn.
Negative Updates
Free Operating Cash Flow Still Negative in H1
Although FOCF improved substantially (c.+45% y/y), it remains negative in the first half (typical seasonality) and was impacted by a EUR 113m cash outflow related to the NH90 litigation settlement and ~EUR 100m higher taxes as prior tax losses have been exhausted.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Order Momentum
Orders up ~40% year‑over‑year in H1 2026 (H1 orders ~EUR 16bn); total backlog ~EUR 59bn (including Iveco). Book‑to‑bill improved to 1.6 (vs 1.3 in 2025). Guidance for full‑year orders upgraded from ~EUR 26bn to EUR 28.2bn.
Read all positive updates
Company Guidance
Leonardo upgraded its 2026 guidance: orders raised to €28.2bn (from prior €26/25bn targets), revenues confirmed at €22.1bn, EBITA increased to €2.21bn (implying a double‑digit EBITA margin target for 2026), free operating cash flow guidance lifted to €1.37bn and net debt pro forma targeted to fall to €2.2bn. This outlook incorporates the 9‑month consolidation of Iveco Defence Vehicles (IDV) (IDV 9‑month revenue target ~€1.1bn, orders ~€1.2bn; H1 IDV revenues ~€0.4bn, H1 IDV orders ~€0.6–0.7bn, IDV backlog ~€6bn), and follows a strong H1 (orders ~€16bn; backlog ~€59bn; book‑to‑bill 1.6; EBITA H1 ~€0.73bn; ROS 7.6%, +110bps; adjusted net income +74%; FOCF up ~40–45% YoY), which underpins the upgraded guidance.Leonardo SpA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
71
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.71B | 19.50B | 17.76B | 15.29B | 14.71B | 14.13B |
| Gross Profit | -3.58B | 2.26B | 2.02B | 1.65B | 1.22B | 1.05B |
| EBITDA | -2.98B | 1.82B | 2.25B | 1.54B | 1.65B | 1.38B |
| Net Income | 1.13B | 1.22B | 1.07B | 658.00M | 927.00M | 586.00M |
Balance Sheet | ||||||
| Total Assets | 37.05B | 34.51B | 33.67B | 30.69B | 28.58B | 28.38B |
| Cash, Cash Equivalents and Short-Term Investments | 985.59M | 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 | 25.73B | 23.77B | 23.47B | 22.13B | 20.88B | 21.54B |
| Stockholders Equity | 9.67B | 9.56B | 8.99B | 7.80B | 7.18B | 6.43B |
Cash Flow | ||||||
| Free Cash Flow | 1.09B | 734.00M | 646.00M | 404.00M | 523.00M | 190.00M |
| Operating Cash Flow | 2.25B | 1.91B | 1.54B | 1.19B | 1.28B | 805.00M |
| Investing Cash Flow | -2.76B | -581.12M | -753.00M | -262.00M | -924.00M | -604.00M |
| Financing Cash Flow | -403.84M | -586.89M | -678.00M | -12.00M | -1.40B | 30.00M |
Leonardo SpA Technical Analysis
Positive
29.73
Price Trends
30.38
Positive
30.97
Positive
31.13
Positive
Market Momentum
1.31
Negative
68.89
Neutral
85.60
Negative
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 29.73 is below the 20-day moving average (MA) of 32.35, below the 50-day MA of 30.38, and below the 200-day MA of 31.13, indicating a bullish trend. The MACD of 1.31 indicates Negative momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $105.83B | 23.67 | 17.43% | 1.60% | 9.13% | 10.37% | |
76 Outperform | $137.03B | 21.79 | 86.24% | 2.34% | 7.20% | 52.79% | |
74 Outperform | $39.76B | 30.62 | 11.71% | 1.04% | 18.14% | 15.02% | |
70 Outperform | $81.00B | 18.08 | 26.58% | 1.73% | 5.90% | 16.00% | |
69 Neutral | $51.84B | 27.95 | 9.41% | 1.63% | 7.29% | 10.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
49 Neutral | $178.58B | 84.63 | 104.83% | ― | 24.78% | ― |
* Industrials Sector Average
FINMY
Leonardo SpA
34.26
8.58
33.44%
BA
Boeing
223.06
-1.94
-0.86%
GD
General Dynamics
393.48
82.57
26.56%
LHX
L3Harris Technologies
279.54
11.65
4.35%
LMT
Lockheed Martin
607.17
177.65
41.36%
NOC
Northrop Grumman
589.14
11.96
2.07%
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.