Italy's Leonardo lifts full-year order, core profit guidance

Italy's Leonardo on Thursday lifted its full-year guidance for orders, core profits and free cash flow after posting a 45% rise in new contracts in ​the first half of the year.
"The outstanding performance continued in the second ‌quarter of the year, supported by standout commercial momentum across all divisions, together with strong growth in profitability and cash generation," the group said in a statement.
The new guidance now includes expected contribution ​from the €1.6-billion acquisition of Iveco Defence Vehicles (IDV) from truck maker Iveco (IVG.MI), opens new tab, completed in ​March.
New orders for 2026 are now seen at €28.2 billion, compared to ⁠a previous guidance of €25 billion, which did not include IDV, and a comparable target ​of €26.2.
Earnings before interest, taxes and appreciation (EBITA) are now estimated to reach €2.21 billion, up from ​an initially targeted €2.03 billion, or €2.15 billion when IDV is accounted for.
After posting first quarter results, former CEO Roberto Cingolani said the company could have proposed a new guidance, but left the decision to the ​new management.
The full-year revenues guidance of around €22.1 billion was confirmed.
The group's net debt is ​now seen at €2.2 billion euros at the end of the year, up from an expected €0.8 billion, which ‌did ⁠not include the cash outflow related to the acquisition of IDV.
The new debt estimate, however, does not include the recent acquisition of Raft by U.S. unit DRS
"Growth in our order backlog, revenues and operating profitability, together with stronger cash generation, demonstrates the Group’s ​ability to execute programmes, ​increase production capacity ⁠and respond effectively to an evolving market environment," commented Chief Executive Lorenzo Mariani, who was appointed in May.
New orders in the first ​six months of the year were up 38.8% year-on-year on ​a comparable ⁠basis.
Revenues were up 8.2% year-on-year, like-for-like, despite the negative impact of exchange rates on the contribution from the U.S business, mainly Leonardo DRS in the electronics sector.
Net debt in the ⁠January-June period ​was up almost 50% to €3.25 billion due to ​the IDV acquisition.
Mariani added in a statement that the group is looking at further M&A operation and "expanding the ​strategic partnerships that support the Group’s long-term growth".

-Reuters