Italian aerospace-and-defense group expects increased demand and market value
- Leonardo forecasts growing orders through to 2028
- Defense electronics and security business driving new orders
- Geopolitical tensions contribute to increased demand
- Shares surge after setting 2028 targets
- European arms makers thriving since Ukraine invasion
Leonardo, the Italian aerospace-and-defense group, expects new orders to continue growing through to 2028, driven by its core defense electronics and security business. The company forecasts an increase in new orders to roughly EUR22.6 billion in 2028, with a total of about EUR105 billion in cumulative orders for the period. Geopolitical tensions and the evolving global security paradigm contribute to the increased demand. Shares of Leonardo surged more than 5% after setting its 2028 targets, reflecting the strong market value. European arms makers have been thriving since the Ukraine invasion, with NATO members replenishing their stockpiles and turning to weapon manufacturers. Leonardo’s operations span various areas, including space exploration, cybersecurity, helicopters, fighter jets, drones, munitions, and torpedoes. The company plans to expand its alliances through potential acquisitions and create a space division to consolidate its activities. Its goal is to transform into a global technology-based aerospace and defense behemoth, achieving this through cost reductions, product portfolio rationalization, and leveraging digitalization and artificial intelligence. Leonardo forecasts increased revenue, adjusted earnings, and free operating cash flow by 2028.
Factuality Level: 7
Factuality Justification: The article provides detailed information about Leonardo’s expected growth in new orders, its strategic plans, and financial projections. It includes quotes from the company’s Chief Executive and discusses the impact of geopolitical tensions on the defense industry. The article does not contain obvious misinformation or propaganda, but it lacks critical analysis or alternative perspectives that could provide a more balanced view.
Noise Level: 3
Noise Justification: The article provides detailed information about Leonardo’s future growth projections, its core defense electronics and security business, and its strategic plans. It also discusses the impact of geopolitical tensions on the company’s performance. The article stays on topic and supports its claims with data and examples. However, it lacks critical analysis of the implications of the company’s expansion and the ethical considerations of the defense industry.
Financial Relevance: Yes
Financial Markets Impacted: The article mentions that Leonardo’s shares surged more than 5% after setting its 2028 targets, indicating that the company’s performance and outlook could impact financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on Leonardo’s defense electronics and security business and its plans for growth through 2028. While there is mention of geopolitical tensions and the impact on arms makers in Europe, there is no specific extreme event described in the article.
Public Companies: Leonardo (Not available)
Key People: Roberto Cingolani (Chief Executive)
Reported publicly:
www.marketwatch.com 
