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03 May 2022

Leonardo

Author: Thomas J. Zoretich , Drawn From: Defense & Aerospace Companies Briefing

  • Over the last few years, Leonardo restructured operations, divested of non-core business, cut costs, and improved profitability. As part of its restructuring actions, the company’s management has undergone repeated shakeups, replacing many long-time managers.
  • Leonardo’s management now appears to have a much sharper strategic outlook, especially given its stated focus to pursue advancement in defense electronics. It has been willing to cut the cord on unprofitable investments and shake up the company.
  • Leonardo is seeking to revamp the company's traditionally decentralized structure by making each of the individual companies into divisions. The goal is to eliminate overlap and better allocate investment between helicopters, aerospace, defense electronics, and space-based on potential return.
  • In March 2022, the company announced that it will invest over €1 billion over the next five years. This will include €200 million per year in Italy and another €100 million per year in its UK division. Much of the targeted investment will go towards advances in technology and advanced manufacturing of defense electronics systems and hardware.
  • Total company revenues in 2021 were 14.135 billion euros, up 5.4% from 13.410 billion in 2020. EBITA in 2021 was 1.626 billion euros, up 11.5% from 1.458 billion in 2020. Net Income more than doubled from the previous year going from 243 million euros in 2020 to 587 million in 2021.
  • At the end of 2021, total backlog was 35.534 billion euros, virtually unchanged from 35.516 at the end of 2020.

About the Author

Thomas J. Zoretich

Thomas J. Zoretich

Tom is Chief Economist and Director of Corporate Analysis at Teal Group. He provides strategic and market analysis for clients in commercial aerospace and defense, including major U.S. and European prime contractors. He writes and edits Teal Group's Defense and Aerospace Companies Briefing, which analyzes the performance, outlook, and strategies of 50 aerospace and defense companies in the United States, Europe, Asia and South America. In addition, he is co-author of Teal's annual World Military Unmanned Aerial Systems: Market Profile and Forecast and World Civil UAS Market Profile and Forecast.

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