Leonardo stock weighs stronger orders against cash-flow drag
Published on 11/06/2026 at 17:30 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSOrders rise while cash conversion matters
- Leonardo lifted its 2026 new-order guidance to 29.5 billion euros after nine-month orders reached 23.3 billion euros.
- Revenue rose 14.2 percent and adjusted net income increased 74.2 percent, while free operating cash flow remained negative.
- The enlarged backlog improves production visibility, but investors still face execution and acquisition-related debt risks.
Leonardo reported stronger results for the first nine months of 2026 on Thursday, November 5, and raised its full-year order target. The aerospace and defense group lifted 2026 new-order guidance to approximately 29.5 billion euros from 28.2 billion euros previously, while keeping its other financial targets unchanged.
Leonardo's results release said new orders reached 23.3 billion euros in January through September, up 27.8 percent year over year. The book-to-bill ratio was about 1.5, and the order backlog rose to 60.4 billion euros, providing more than 2.7 years of production coverage.
Profitability improves across divisions
Revenue increased 14.2 percent to 15.3 billion euros, while EBITA advanced 37.7 percent to 1.301 billion euros. The operating margin reached 8.5 percent, up 1.5 percentage points from the comparable period.
Adjusted net income rose 74.2 percent to 812 million euros. Free operating cash flow remained negative at 68 million euros, although Leonardo said it improved sharply from the prior-year period; before consolidating Iveco Defence Vehicles, the figure was positive at 22 million euros.
Net debt reached 3.325 billion euros, up 43.8 percent year over year, following the approximately 1.6 billion euro acquisition of Iveco Group's Defence business. The balance-sheet increase makes the conversion of the backlog into deliveries, revenue and cash an important execution test.
Order target rises, other goals hold
Leonardo kept its 2026 targets for revenue of approximately 22.1 billion euros, EBITA of approximately 2.21 billion euros, free operating cash flow of approximately 1.37 billion euros and net debt of approximately 2.2 billion euros. Management's next challenge is to expand production capacity and improve program execution without allowing the acquisition burden to weaken cash generation.
Leonardo stock traded at 48.12 euros on Lang & Schwarz at 17:14:45 CET on Friday, November 6, 4.09 percent below the Xetra close of 50.17 euros on Thursday, November 5. Since the October 29 report, which recorded 51.96 euros at 16:35 Berlin time, the quote has declined 7.39 percent.
Investors can follow the real-time quote of Leonardo stock as order visibility improves but cash conversion and debt remain central performance measures.
The FTSE MIB market environment provides the relevant Italian equity-market context without determining Leonardo's company-specific earnings outlook.
More news and analyses on Leonardo stock will track fourth-quarter execution, cash generation and delivery of the enlarged backlog.
Leonardo stock at a glance
- Company: Leonardo S.p.A.
- ISIN: IT0003856405
- Xetra symbol: FMNB
- Lang & Schwarz quote: 48.12 euros at 17:14:45 CET on Friday, November 6, 2026
- Xetra close: 50.17 euros on Thursday, November 5, 2026
- 2026 order guidance: approximately 29.5 billion euros
- Nine-month revenue: 15.3 billion euros
- Nine-month EBITA: 1.301 billion euros
