By Mauro Orru
Leonardo posted higher earnings and orders ahead of company guidance for last year, led by growth at its core defense electronics and security business at a time of escalating geopolitical tensions.
The Italian aerospace-and-defense group on Thursday posted adjusted earnings before interest and taxes–its preferred measure of profitability–of 1.29 billion euros ($1.40 billion) for 2023, up 5.8% on year.
Leonardo’s operations span space exploration, cybersecurity, helicopters, fighter jets, drones, munitions as well as torpedoes. The group owns a 25% stake in MBDA, a joint venture that manufactures missiles with France’s Airbus and the U.K.’s BAE Systems.
Arms makers in Europe have been thriving since Russia invaded Ukraine almost two years ago. Members of the North Atlantic Treaty Organization have been shipping tanks, rocket launchers, air defenses, ammunition and other military equipment to Ukraine, and are now turning to weapon manufacturers to replenish their stockpiles.
Leonardo reported EUR17.93 billion in new orders compared with EUR17.27 billion in 2022. Its defense electronics and security business accounted for the lion’s share of new orders, contributing EUR9.72 billion to the total.
Revenue climbed 3.9% to EUR15.29 billion.
Leonardo had targeted adjusted EBIT between EUR1.26 billion and EUR1.31 billion for 2023, about EUR17 billion in new orders and revenue between EUR15 billion and EUR15.6 billion.
The group didn’t disclose a dividend or guidance for the current year as the company is due to present its 2024-28 industrial plan on March 12.
Write to Mauro Orru at mauro.orru@wsj.com
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