Leonardo's Shareholder Rewards Surge on Record Cash Generation

Leonardo announces a 21% dividend hike to €0.63/share after generating over €1B in free cash flow. Debt reduced 44%, with strong 2026 revenue and order forecasts.

Shareholders in Leonardo, the aerospace and defense group, are set to receive a significantly larger payout. The company has announced a substantial dividend increase, powered by an unprecedented year of cash generation and a rapidly improving balance sheet. This financial strength provides the firm with new strategic flexibility.

Dividend Jumps on Financial Milestone

The direct catalyst for the enhanced shareholder return is a landmark achievement: Leonardo's free operating cash flow surpassed €1 billion for the first time in its recent history. This torrent of cash is being channeled back to investors. A dividend of €0.63 per share will be paid in June 2026, marking a sharp 21% rise from the previous year's distribution of €0.52.

This generous payout is underpinned by a dramatic reduction in corporate debt. Leonardo's net financial debt was slashed by 44% to exactly €1 billion by the end of 2025. Management is targeting a further reduction to approximately €800 million within the current year. This accelerated deleveraging effort is materially lowering interest expenses and bolstering the group's expanding profitability, evidenced by an operating profit margin (ROS) that improved from 8.4% to 9.0%.

Robust Order Intake Fuels Optimistic Outlook

Confidence in the future is reflected in a bullish forecast for 2026. Leonardo anticipates revenue climbing to around €21 billion, driven by sustained high demand in its defense electronics and security divisions. A book-to-bill ratio of 1.2 confirms the company is securing new orders at a faster rate than it fulfills existing ones, indicating strong future revenue visibility.

For the ongoing fiscal year, the leadership team expects to book new orders worth roughly €25 billion. This fundamental operational strength is mirrored in the equity's market performance. Closing at €62.84 on Thursday, the share price is trading just shy of the 52-week high it set the prior week. Over a twelve-month horizon, investors are sitting on a solid 33% gain.

Strategic Focus on Integration and Growth

Looking ahead, the industrial plan running through 2030 now prioritizes integrating recent acquisitions and making targeted investments in digital technologies. Management has set clear financial benchmarks for the coming quarters, including an adjusted operating profit (EBITA) target of just over €2.03 billion for 2026. The core helicopter and aircraft divisions are expected to deliver double-digit growth rates, supporting these ambitious goals.