Leadership Overhaul at Italian Defense Giant Leonardo Amid Strategic Expansion

Leonardo's entire board is set for renewal as strong 2025 results and major acquisitions pave the way for its 2030 strategy, with a proposed dividend increase to €0.63 per share.

Leonardo, the Italian aerospace and defense conglomerate, is poised for a complete renewal of its board of directors. This sweeping leadership change comes at a time of significant operational strength for the company, marked by robust financial performance and major acquisitions. The upcoming Annual General Meeting in May will see the entire board replaced, shifting shareholder focus toward the execution of an ambitious growth strategy extending to 2030 and a promised dividend increase.

Strong Fundamentals Set the Stage for Change

The company's operational strength provides the backdrop for this transition. Leonardo's shares have gained nearly 14% since the start of the year, closing at €58.26 in the most recent trading session. This market confidence is underpinned by a substantial 18.2% rise in EBITA (operating result) to €1.75 billion for the past year, exceeding the group's own forecasts.

Concurrently, Leonardo has aggressively expanded its portfolio. The company recently finalized the €1.6 billion acquisition of the defense division of the Iveco Group. In a nearly simultaneous move, it secured the remaining 35% stake in radar specialist GEM Elettronica, consolidating its position in the maritime surveillance systems sector.

Annual Meeting to Address Dividend and Share Buyback

Shareholders are convened for the Ordinary Shareholders' Meeting on May 7, 2026. A key item on the agenda, alongside the approval of the 2025 financial statements, is a positive development for investors: the proposed dividend is set to rise from €0.52 to €0.63 per share. Reflecting ongoing geopolitical tensions, voting will be conducted exclusively via an appointed proxy, a security measure continued from recent practice.

Management will also seek authorization for a share buyback program. The request is to repurchase up to two million of the company's own shares over the next 18 months, representing approximately 0.345% of its share capital. These shares are intended for existing employee share ownership and long-term incentive plans.

New Board to Steer Ambitious Industrial Plan

The incoming leadership team will be tasked with a central priority: implementing the 2026–2030 Industrial Plan. A cornerstone of this strategy is the "Michelangelo Dome" initiative, projected to unlock new business opportunities worth €21 billion over the next decade. Of this total, €6 billion is expected to be realized by 2030.

Market analysts are largely optimistic about this strategic direction. The average 12-month price target for Leonardo's stock currently stands at €67.42, indicating confidence in the company's growth trajectory under its new governance.