Lorenzo Mariani, Leonardo's new CEO, emphasized the company's commitment to pursuing acquisitions as a means to enhance its growth in response to the escalating demand for military equipment in Europe, particularly following Russia's invasion of Ukraine.
He highlighted the importance of mergers and acquisitions (M&A) in addressing the supply chain challenges and technological needs of both its European and U.S. operations.
Recently, Leonardo has expanded its defense portfolio through significant acquisitions, including the 1.6 billion euro purchase of Iveco Defence Vehicles and a $450 million deal for Raft, a software company specializing in AI and mission software.
The company reported a record order backlog of 59 billion euros, a 30% increase year-on-year, and raised its earnings guidance for the year, reflecting a 45% rise in new orders in the first half of the year. Despite a challenging environment for defense stocks, Leonardo's shares have risen about 11% year-to-date, aligning with broader market trends.
The company is well-positioned to leverage increased defense spending, focusing on advanced technologies such as unmanned systems and AI-powered weapons, as the nature of modern warfare evolves