Leonardo today rolled out ambitious plans to achieve a step change in financial performance across its complex civil and military portfolio. Briefing financial analysts and reporters in Rome, the Italian aerospace and defense group’s CEO and general manager, Roberto Cingolani, said revenues are expected to climb from €16 billion ($17.5 billion) in 2023 to €21.3 billion in 2028.
Through a process of transformation that will involve rationalization of existing core businesses, including helicopter manufacturing and aerostructures, and heavy investments in digital technology, Leonardo intends to almost double its annual earnings before interest and taxes (EBITA) to €2.5 billion. Hitting these targets will involve growth in orders from €18.7 billion to €22.6 billion, as well as cost savings of €1.8 billion across the group that will include selling some as-yet-unspecified business units.
Reporting financial results for 2023, Leonardo said revenues grew by 3.9 percent, to €15.3 billion, while the value of new orders increased by 3.8 percent, to €17.9 billion. Earnings improved by 5.9 percent, to €1.3 billion.
Revenues at Leonardo’s helicopter division also rose by 3.9 percent, to €4.7 billion. While orders for rotorcraft last year fell by 9 percent, to 5,513 units, the backlog at year-end 2023 still was 6 percent higher than a year earlier, rising to 14,426 units.
In the aerostructures division, which includes Leonardo's ATR regional airliner joint venture with Airbus, revenues increased by 33.9 percent, to €636 million. The aircraft division, which mainly focuses on Leonardo’s military trainers and stake in the Eurofighter program, saw revenues decline by 4.8 percent, to €2.9 billion.
Cingolani said Leonardo is committed to “upgrading” its rotorcraft portfolio while introducing new technology and exploring strategic partnerships. In the civil market, he highlighted the in-development AW09 single-engine helicopter as a priority product, along with the AW609 tiltrotor.
During the 2024 to 2028 industrial plan, Leonardo aims to boost revenues from helicopters by 5.6 percent, to €6.2 billion.It is projecting a 2.4 percent increase in helicopter sales, to €6.2 billion, and 8.4 percent higher division revenues, to €630 million.
New civil market segments for the Italian group’s aerostructures division will include its involvement as a strategic partner in Boom’s Overture supersonic airliner and Vertical Aerospace’s VX4 eVTOL. Leonardo is also targeting growth from its role as a supplier for Boeing’s 787 and 777X widebody airliners.
According to Cingolani, the limitations of current battery technology mean Leonardo sees no potential for pursuing all-electric aircraft programs itself. However, the company is exploring hybrid-electric propulsion for a version of the AW09 helicopter and is also engaged in ATR's plans for the new Evo family of regional aircraft.