Italy’s Leonardo delivered a standout Q1 2025
The state-controlled aerospace and defence group reported EBITA of €211 million, up 12.2% year-on-year, on revenues of €4.2 billion (a 13.5% jump). Both metrics exceeded analysts’ expectations, and importantly, Leonardo’s order intake exploded: €6.9 billion in new orders, up nearly 20% from Q1 last yearr. Management attributed the order surge to heightened demand for security and military equipment amid rising geopolitical tensions. This includes likely gains in its helicopter division and electronics (sensors) – sectors where Leonardo is a European leader. The firm’s order backlog now stands at over €46 billion, +7% year-on-year, providing multi-year revenue visibility. Off the back of these results, Leonardo confirmed its 2025 guidance for the full year. Investors responded enthusiastically – Leonardo’s shares jumped as much as 2.8% on the earnings news. The performance reflects a broader trend: European defence firms are seeing real financial payoffs from government spending increases. Leonardo, which produces everything from fighter electronics to naval systems, is capitalizing on Italy’s and NATO’s push to rearm. The company noted it “could benefit from Europe’s push for increased defence spending” – a fact already evident in its double-digit growth. Strong execution this quarter also boosts confidence in Leonardo’s new management (a government-nominated CEO took over in 2023) as they pursue a strategy of cash generation and debt reduction. With Italy now meeting NATO’s 2% target (albeit via accounting tweaks) and launching big procurement programs, Leonardo’s outlook appears increasingly bright.