Leonardo: H1 Confirms Stronger Earnings Quality And A Defense Upside

Mare Evidence Lab 6.16K Followers Follow Summary H1 growth quality improved, with like-for-like sales up 8.2%, orders up 39%, and margin expansion contributing more to EBITA growth than volumes. The backlog reached €52.6 billion before Iveco Defense, supporting roughly 2.5 years of revenue visibility and reinforcing confidence in sustained defense demand. Aerostructures is still loss-making, but H1 EBITA losses narrowed materially, while stronger Boeing 787 and ATR volumes support the path toward break-even. Iveco Defense strengthens land-defense exposure and is margin accretive, while drones increasingly appear complementary to helicopters rather than a structural threat. Jozsef Soos/iStock Editorial via Getty Images These days, our team attended the Infrastructure, Energy & Defense Conference in Milan and met the Leonardo ( FINMF ) ( FINMY ) IR team. We took a deep dive into the H1 results and key developments This article was written by Mare Evidence Lab 6.16K Followers Follow Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.