Leonardo lifts 2026 orders guidance to €28.2 billion on defense growth

Leonardo raised its 2026 orders guidance to approximately €28.2 billion, up from a prior forecast of about €25 billion, citing strong defense business growth.

"The group continues to benefit from robust demand across its core defense markets," the company said in a statement.

The revised outlook reflects accelerating orders for Leonardo's helicopter, electronics and aircraft divisions, driven by elevated defense spending in Europe and ongoing procurement by Middle Eastern customers. The company's order book has expanded significantly since Russia's invasion of Ukraine in 2022, with the conflict in the Middle East adding further momentum.

The guidance raise positions Leonardo for record backlog levels heading into 2027. Investors will watch the company's half-year results for margin details and any further upward revision to revenue or profit forecasts.

Leonardo, Italy's largest defense contractor, competes with peers such as BAE Systems and Airbus in the European defense market. Its core platforms include the Eurofighter Typhoon, AW149 and AW169 helicopters, and naval systems. European Union members have pledged to increase military budgets following the Ukraine war, while NATO's eastern flank countries continue to accelerate procurement. BAE Systems separately raised its 2026 outlook on Thursday, forecasting operating profit growth of 10 percent to 12 percent, up from a prior 9 percent to 11 percent range, as the U.S. ramps up munitions output and Britain pushes ahead with submarine and fighter jet programs.

The upgrade signals that Leonardo's management expects the current demand cycle to persist through at least year-end. Investors will watch the company's interim results for updated profit and cash flow guidance.

This article is for informational purposes only and does not constitute investment advice.