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Leonardo Spa
(LDO)
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Rating:66Neutral
Price Target:
€62.00
▲(18.64% Upside)
Action:Downgraded
Date:08/06/26
The score is driven primarily by strengthening financial performance—solid growth, improving margins, and a de-levering balance sheet—offset by only moderate/volatile free-cash-flow conversion. Technically, the uptrend is supported by positive MACD and price above major moving averages, but overbought signals (RSI/Stoch) add near-term risk. Valuation is a secondary drag due to a higher P/E and modest yield.
Positive Factors
Sustained revenue growth and improving margins
Leonardo shows multi-year revenue expansion with net margin rising to ~6.3% by 2025. Durable top-line growth plus improving profitability indicate better program execution and pricing mix, supporting reinvestment in R&D and services and reducing sensitivity to single-program shocks over months.
Negative Factors
Moderate and volatile free cash flow conversion
Although operating cash flow and FCF improved to ~€1.0B in 2025, FCF covered only ~50% of net income and has been uneven historically. This constrains discretionary investment, shareholder returns, and buffer against program delays, making capital allocation sensitive across fiscal cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained revenue growth and improving margins
Leonardo shows multi-year revenue expansion with net margin rising to ~6.3% by 2025. Durable top-line growth plus improving profitability indicate better program execution and pricing mix, supporting reinvestment in R&D and services and reducing sensitivity to single-program shocks over months.
Read all positive factors
Leonardo Spa (LDO) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€33.63B
Dividend Yield1.1%
Average Volume (3M)3.05M
Price to Earnings (P/E)29.4
Beta (1Y)0.83
Revenue Growth10.11%
EPS Growth7.22%
CountryIT
Employees66,510
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
€72.80Price Target Upside39.30% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)2.35
Revenue Forecast (FY)€22.27B
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 | 26.20B | 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
53.08
Positive
53.22
Positive
53.40
Positive
Market Momentum
1.98
Negative
62.92
Neutral
49.14
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 below the 20-day moving average (MA) of 56.64, below the 50-day MA of 53.08, and below the 200-day MA of 53.40, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 49.14 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 |
|---|---|---|---|---|---|---|---|
88 Outperform | €4.48B | 17.33 | 17.62% | 1.35% | 6.01% | 10.21% | |
67 Neutral | €1.47B | 89.54 | 2.08% | 0.52% | 21.60% | 84.46% | |
66 Neutral | €33.63B | 29.40 | 13.19% | 1.21% | 10.11% | 7.22% | |
61 Neutral | €702.50M | 20.81 | 7.61% | 4.42% | -4.62% | -23.89% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €4.45B | 18.54 | 17.64% | ― | -0.60% | 41.35% | |
48 Neutral | €39.23B | 94.85 | 2.66% | 0.66% | 3.00% | -33.57% |
* General Sector Average
IT:LDO
Leonardo Spa
57.33
10.86
23.38%
IT:AVIO
Avio S.p.A.
31.34
4.98
18.90%
IT:FCT
Fincantieri S.p.A.
12.42
-4.52
-26.68%
IT:PIA
Piaggio & C. SPA
2.01
0.07
3.66%
IT:REY
Reply SPA
119.40
-0.72
-0.60%
IT:STMMI
STMicroelectronics NV
43.01
20.87
94.26%
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.