• Order Backlog exceeds € 46 billion threshold; Book-to-Bill ratio 1.7x, reflecting strong commercial performance
• Orders increase driven by continued strengthening of core businesses
• Revenue and EBITA growth in line with the sustainable growth path outlined in the Industrial Plan
• Net Result before extraordinary transactions € mil. 115 (+23.7% vs 1Q2024)
• Free Operating Cash Flow (FOCF) shows steady improvement, with reduced cash absorption, demonstrating the effectiveness of the actions undertaken
• Group Net Debt improves to € 2,125 million (-27.5% vs 1Q2024)

^{(*) Excluding the contribution of UAS
(**) 2024 figure restated due to KPI revision with reference to the valuation of strategic participations}

*******************

Leonardo's Board of Directors, convened today under the Chairmanship of Stefano
Pontecorvo, examined and unanimously approved the results for the first quarter 2025.

“We are continuing the execution of our Industrial Plan. The first-quarter results, along with the rating upgrade by Standard & Poor’s and the outlook revision by Moody’s, further confirm the positive market reception of the initiatives undertaken and the Group’s strategic outlook. We, therefore, reaffirm our 2025 guidance and our medium-to-long-term targets,” said Roberto Cingolani, CEO and General Manager of Leonardo. “During the first quarter of 2025, we signed a Memorandum of Understanding with Baykar Technologies for the development of unmanned technologies, aimed at further strengthening our position in the international competitive landscape, and finalized the establishment of Leonardo Rheinmetall Military Vehicles with Rheinmetall, to operationalize the formation of a new European hub for the development and production of military combat vehicles in Europe. The working group dedicated to the implementation of the Capacity Boost has elaborated the plan development guidelines, which will be presented by the summer,” Cingolani concluded.

1Q2025 Results 

The solid Group performance continued in the first three months of 2025, with the gradual strengthening of its competitive positioning in both domestic and international markets supported by a further growth of volumes and a solid profitability. The good performance of the period, compared with the same period of the prior year, is even more significant in as much as it does not include the contribution from the Underwater Armaments & Systems (UAS) business, which had been recognised under the Defence Electronics & Security sector until 2024 and sold to Fincantieri in early 2025.

In the first three months of 2025 New Orders reached € bil. 6.9 (+19.7% compared to the figure of the comparative period), confirming the continuing strengthening of the core businesses as a result of the commercial successes and good positioning of the Group’s products, technologies and solutions, as well as the ability to effectively cover key markets in a market environment where demand for security remains high.

Revenues came to € bil. 4.2 showing a significant increase (+13.5% compared to the figure of the comparative period), and EBITA was € mil. 211 (+12.2% compared to the restated^* figure of the comparative period), in line with expectations and sustainable growth path envisaged in the Industrial Plan of Leonardo. 
 

Free Operating Cash Flow, negative for € mil. 580 as a result of the usual interim trend that is characterised by cash absorptions in the first part of the year, showed an improvement (+6.6% compared to the figure of the comparative period) demonstrating the effectiveness of the actions undertaken. The FOCF performance and the first tranche of payment received from Fincantieri as part of the sale of the UAS business, related to the fixed component of the Enterprise Value equal to € mil. 287, determine a consequent positive effect on the Group Net Debt, down by about 27.5% compared to the comparative period.

^{(*) The figure for the comparative period is presented in restated form as a result of the revision of EBITA, starting from the 2024 Financial Statements, with reference to the strategic investments.}

Key Perfomance Indicators (KPIs) 

^{(*) The 2024 figure is presented in restated form as a result of the revision of the KPI with reference to the valuation of strategic investments. Specifically, starting from the 2024 Financial Statements, the share of net result of strategic investees, which is already recognised within the Group's EBITA as part of their valuation at equity, now no longer includes any non-recurring, extraordinary or nonroutine items in the income statement; in line with Leonardo’s policies and the approach already applied to companies consolidated on a line-by-line basis, these items are deducted from EBITA in order to show profit margins that are not affected by volatility elements. As a result of the revision described above impacting also EBITDA and the performance indicators ROS and ROI, the figures for the comparative period are provided in restated form. The reclassification has no effects on other indicators.}

As already indicated, following the finalisation of the sale to Fincantieri of the Underwater Armaments & Systems (UAS) line of business, occurred on 14 January 2025, the figures of the first quarter of 2025 do not include the contribution from such business that, vice versa, was recognised within the Defence Electronics & Security sector until 2024. In order to make the Group's operational performance more comparable, for some performance indicators we report below the figure of the comparative period – and the related change compared to the current period – excluding the contribution of the UAS business (isoperimeter):

^{(*) 2024 restated figure as a result of the revision of the KPI with reference to the valuation of strategic investments.}

Guidance 2025 

According to the First Quarter 2025 results and the expectations for the coming quarters, we confirms full year 2025 Guidance as disclosed in March 2025.

Below is the summary table:

^{(*) Assuming an exchange rate of €/USD a 1.08  €/GBP a 0.86}

^{Based on the current assessments of the impacts of the geopolitical situation also on supply chain, tariffs, inflationary levels and the global economy, subject to any further significant effects.} 
 

Commercial performance 

• New Orders reached € bil. 6.9, highlighting an increase compared to the first three months of 2024 (+19.7%, +20.6% on a like-for-like perimeter) in all the core businesses. Particularly significant is the growth of orders noted in Helicopters, Defence Electronics & Security and Aircraft, in addition to the improvement of Aerostructures (+96.4% compared to the prior period), which benefitted from the partial recovery of demand. The level of new orders for the period is equal to a book to bill (the ratio of New orders to Revenues for the period) of about 1.7. 
• The Order Backlog exceeded the € bil. 46 threshold ensuring a coverage in terms of production exceeding 2.5 years.

Business performance 

• Revenues (€ bil. 4.2) increased compared to the first three months of 2024 (+13.5%), mainly driven by the volumes of Helicopters and Defence Electronics & Security, despite the change in the perimeter related to the sale of the UAS business (+14.9% on a like-for-like perimeter).
• EBITA (€ mil. 211), increased significantly compared to the first three months of 2024 in almost all sectors (+12.2% against the restated figure), reflects the growth of volumes and the solid performance of the Group’s businesses. The period was particularly affected by the performance of the Helicopters and the Defence Electronics and Security sectors, which more than offset the persisting difficulties in the Aerostructures and the Space manufacturing segment. The good performance of the Group is even more evident if we exclude the contribution of the UAS business from the comparative figure (+17.9% on a like-for-like perimeter).
• EBIT (€ mil. 189) was affected by the improvement of EBITA and reported an increase compared to the first quarter of 2024 (+12.5%). 
• The Net Result before extraordinary transactions (€ mil. 115, +23.7% compared to the first quarter of 2024) benefitted from the performance of EBIT and from lower net financial costs, partially offset by the higher tax burden for the period.
• The Net Result (€ mil. 396) showed a decrease due to the fact that the figure of the comparative period (€ mil. 459) included the capital gain (€ mil. 366) recognised after the valuation at fair value of the Telespazio Group, carried out for the purposes of the line-by-line consolidation of the same. The figure for the first quarter of 2025, equal to € mil. 396, included, beside the Net Result before extraordinary transactions, the capital gain recognised following the sale of the UAS business to Fincantieri, equal to about € mil. 281, finalized in January 2025 and in respect of which the Parties are still defining the variable component of the operation, in addition to the usual price adjustment mechanism.

Financial performance 
    

• The Free Operating Cash Flow (FOCF) in the first quarter of 2025, negative for € mil. 580, showed an improvement compared to the performance of the comparative period (negative for € mil. 621, negative for € 628 mil. on a like-for-like perimeter), confirming the positive results reached thanks to the effect of initiatives to strengthen operational performance and collection cycle, a careful investment policy in a period of business growth with stringent priorities, and an efficient financial strategy. The figure however highlighted the usual interim trend that is characterised by cash absorptions during the first part of the year.
• The net change in loans and borrowings included the repayment, occurred in March 2025, of the bonded loan of Leonardo S.p.a. issued in 2005 and amounting to € mil. 500, which reached its natural maturity date.

The Group Net Debt, equal to € mil. 2,125, reduced significantly (about € bil. 0.8) against March 2024 thanks to the strengthening of the Group's cash generation and to the cash-in of the first tranche of payment related to the sale of the UAS business, determined on the basis of the fixed component of the Enterprise Value and equal to € mil. 287, occurred in January 2025. 

Compared to 31 December 2024 (€ mil. 1,795) the figure increased mainly as a result of the abovementioned usual FOCF performance, net of the effect of the abovementioned sale of the UAS business.

Changes in the Group Net Debt

Key performance indicators by Sector 

The Key Performance Indicators of the business Sectors are reported below while pointing out that – starting from 2024 - the Group defined a representation of its performance increasingly in line with the corporate strategies and the underlying business trends. The Sectors’ performance will be therefore represented and commented on with reference to the operating sectors Helicopters, Defence Electronics & Security, Cyber Security & Solutions, Aircraft, Aerostructures and Space (Helicopters, Defence Electronics & Security, Aircraft, Aerostructures and Space in the results as at 31 March 2024, restated for ease of comparison). With reference to the Defence Electronics & Security segment, the figure for the comparative period is presented excluding the contribution of the UAS business. 
Leonardo confirms its growth path in all core areas of its business. The business sectors are commented on below in terms of business and financial performance:

^{(*) 2024 restated figure as a result of the revision of the KPI with reference to the valuation of strategic investments}