ROME — Leonardo is predicting a massive revenue leap to as much as €30 billion (U.S. $32.5 billion) by 2029 from its current €17.8 billion ($19.3 billion) thanks to new joint ventures, organic growth and huge rises in defense spending in Europe.
The projection was part of the Italian firm’s new industrial plan for 2025-2029, which was released Wednesday on the back of 2024 results, which included €20.9 billion ($22.7 billion) in orders, up 20.9% as Europe splashes out on defense in the wake of Russia’s invasion of Ukraine.
Presenting the new plan to analysts, Leonardo CEO Roberto Cingolani said the European Union’s plans to stimulate further spending could see the firm’s annual order intake from Italy rise by €2-3 billion ($2.2-3.3 billion) with another extra €2-3 billion from European customers. On top of that potential €6 billion ($6.5 billion) annual windfall, Leonardo’s new joint ventures would do the rest, pushing revenue to as high as €24 billion ($26 billion) by 2029.
Cingolani told analysts the “remarkable” leap in orders would need a massive growth in production capacity.
Cingolani also gave more details about the joint venture he announced last week with Turkish drone champion Baykar, which will see Leonardo equip Baykar platforms with sensors and electronics. The presentation stated Leonardo would integrate its Britestorm jammer, Gabbiano radar and Skyward Infrared search-and-track system and other systems, including data links and flight control computers. Revenue from the joint venture would total €600 million ($650.3 million) by 2029, the firm said.
The plan also envisages €1 billion ($1.1 billion) in revenue between 2025 and 2029 from Leonardo’s new joint venture with Germany’s Rheinmetall to build new tanks and armored fighting vehicles for the Italian army.
The presentation confirmed the CEO of the new joint venture will be Laurent Sissman, Leonardo’s former head of unmanned systems, while Rheinmetall’s David Hoeder will become chairman.
The presentation said the U.K., Japan and Italy were set to invest €40 billion ($43.4 billion) by 2035 in the GCAP sixth-generation fighter program on which Leonardo is working, with 300 aircraft deliveries expected after 2035.
Cingolani said Leonardo had found a partner for its troubled aerostructures unit, which includes work on the Boeing 787 in southern Italy. He declined to name the partner although speculation has grown that Saudi Arabia is coming on board following the visit of Saudi officials to one facility last month.
Leonardo has previously told Defense News it would encourage Saudi Arabia to boost its aerospace know-how as a springboard to joining the GCAP program. In a conference call with analysts Wednesday, Cingolani said he backed Saudi Arabia’s entry into the program.
The new industrial plan envisages Leonardo launching new satellites between 2027 and 2028, including 18 military satellites, of which six would have infrared sensors. €580 million ($628.6 million) of a total €900 million ($975.4 million) budget for the launches is already covered by the Italian defense ministry, the presentation stated. Another 20 civilian low-earth orbit satellites will also be launched.
Cingolani said that Leonardo was seeking to beef up its cyber and space activities through acquisitions and had five targets in mind after losing out to rival buyers in three bids last year. With a focus on cyber security, AI and space technologies, Leonardo is aiming to shift from being a defense firm to a “global security” company, the presentation said.
Tom Kington is the Italy correspondent for Defense News.
