# Leonardo (LDO.MI)

Canonical: https://gigainvestors.com/s/LDO.MI

Analysis as of: 2026-10-16T07:34:15.141Z. Financial observations: FY2015–FY2025.

Listing currency: EUR. Reporting currency: EUR.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: EUR 47.26 per share; close as of 2026-10-14.

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.14×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.08×

- FY2020: 0.06×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.07×

- FY2024: 0.07×

- FY2025: 0.09×

### moat: pass

- ROIC, median of available years: 16.0%

- ROIC, second-lowest year: 13.2%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 11.5%

- Recent gross margin (lower of latest and 3-year median): 11.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 7.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 17.9%

- FY2017: 13.7%

- FY2018: 18.4%

- FY2019: 40.8%

- FY2020: 15.0%

- FY2021: 11.3%

- FY2022: 16.1%

- FY2023: 13.2%

- FY2024: 15.9%

- FY2025: 21.3%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.80×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: EUR 3.6B

- Net income, five-year total: EUR 4.5B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -4.2 pp

- Working capital / revenue, change between three-year averages: -29.3 pp

- Working capital / revenue, final three-year average: 36.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.81×

- FY2022: 0.75×

- FY2023: 0.63×

- FY2024: 0.89×

- FY2025: 0.84×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 17.9% vs 15.9%

- Per-share earnings: 0.89 to 1.87 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: EUR 23B

- Cumulative retained earnings: EUR 4.9B

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.2%

- Per-share value change: EUR 0.98

- Per-share value, starting three-year median: EUR 0.89

- Per-share value, ending three-year median: EUR 1.87

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: EUR 4.0B

- Cumulative net income, 10 years: EUR 6.8B

- ROIC, first three-year median: 17.9%

- ROIC, last three-year median: 15.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: EUR 0.47

- FY2018: EUR 0.89

- FY2019: EUR 1.43

- FY2020: EUR 0.42

- FY2021: EUR 1.02

- FY2022: EUR 1.61

- FY2023: EUR 1.14

- FY2024: EUR 1.87

- FY2025: EUR 2.12

### accounting: pass

- Sloan accruals: -1.5%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.43×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.89×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.3%

- FY2017: -1.8%

- FY2018: -0.7%

- FY2019: 0.7%

- FY2020: -0.1%

- FY2021: -0.5%

- FY2022: -0.8%

- FY2023: -1.7%

- FY2024: -1.4%

- FY2025: -1.5%

## Holders

## Price story

Up 232% since Oct 2023 · sales +9.8%

Story as of 2026-10-16T09:59:59.873Z; price observation 2026-10-14.

### Sales · FY2024–2025

sales +9.8%; source https://filings.xbrl.org/529900X4EEX1U9LN3U39/2024-12-31/ESEF/IT/0/529900X4EEX1U9LN3U39-2024-12-31-0-it/reports/529900X4EEX1U9LN3U39-2024-12-31-0-it.xhtml; observed 2025-03-18.

- FY2016: EUR 12B 

- FY2017: EUR 12B 

- FY2018: EUR 12B 

- FY2019: EUR 14B 

- FY2020: EUR 13B 

- FY2021: EUR 14B 

- FY2022: EUR 15B 

- FY2023: EUR 15B 

- FY2024: EUR 18B 

- FY2025: EUR 20B 

### Gross margin · FY2025

gross margin 11.6%; source https://filings.xbrl.org/529900X4EEX1U9LN3U39/2024-12-31/ESEF/IT/0/529900X4EEX1U9LN3U39-2024-12-31-0-it/reports/529900X4EEX1U9LN3U39-2024-12-31-0-it.xhtml; observed 2025-03-18.

- FY2016: 38.4% 

- FY2017: 37.9% 

- FY2018: 36.4% 

- FY2019: 37.0% 

- FY2020: 10.6% 

- FY2021: 9.7% 

- FY2022: 10.6% 

- FY2023: 10.8% 

- FY2024: 11.3% 

- FY2025: 11.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are EUR 19.5 billion.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2025-12-31 (filed 2025-03-18); FY2025: revenue 19503000000; grossProfit 2263000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 10.8% to 11.6% during 2023–25; it earns 16% on its capital.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2023-12-31 (filed 2025-03-18); FY2023: grossProfit / revenue = 10.8%.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2024-12-31 (filed 2025-03-18); FY2024: grossProfit / revenue = 11.3%.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2025-12-31 (filed 2025-03-18); FY2025: grossProfit / revenue = 11.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-03-18); 10-year return on capital observations [[2016,0.17935128668549047],[2017,0.13686259924827707],[2018,0.18351382310145198],[2019,0.4084040404040404],[2020,0.14966291442263985],[2021,0.11336681058347736],[2022,0.16097414305708854],[2023,0.13171056231473965],[2024,0.15900884156447323],[2025,0.2128554367323013]]; median 0.1599914923107809. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 11% gross margin through 2022 cost inflation.

- Source: https://filings.xbrl.org/529900X4EEX1U9LN3U39/2024-12-31/ESEF/IT/0/529900X4EEX1U9LN3U39-2024-12-31-0-it/reports/529900X4EEX1U9LN3U39-2024-12-31-0-it.xhtml (filed 2025-03-18); Gross margin observations: [[2021,0.09656880084895648],[2022,0.10596071501393325],[2023,0.1079066117323916]]; range within 2 percentage points.

### Where the cash goes

Spends 27.8% of cash earnings on expansion; paid dividends in 9 of 10 years.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2016-12-31 (filed 2025-03-18); FY2016: growth capex 0; upkeep 391000000; owner earnings 892000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2017-12-31 (filed 2025-03-18); FY2017: growth capex 0; upkeep 483000000; owner earnings 465000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2018-12-31 (filed 2025-03-18); FY2018: growth capex 0; upkeep 577000000; owner earnings 110000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2019-12-31 (filed 2025-03-18); FY2019: growth capex 0; upkeep 594000000; owner earnings 755800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2020-12-31 (filed 2025-03-18); FY2020: growth capex 0; upkeep 311000000; owner earnings 614000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2021-12-31 (filed 2025-03-18); FY2021: growth capex 90000000; upkeep 525000000; owner earnings 472400000. Growth capex / owner earnings = 0.1905165114309907.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2022-12-31 (filed 2025-03-18); FY2022: growth capex 94002420.60209441; upkeep 667997579.3979056; owner earnings 696002420.6020944. Growth capex / owner earnings = 0.135060479417263.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2023-12-31 (filed 2025-03-18); FY2023: growth capex 94464823.14703429; upkeep 687535176.8529657; owner earnings 417464823.1470343. Growth capex / owner earnings = 0.22628211506520887.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2024-12-31 (filed 2025-03-18); FY2024: growth capex 232000000; upkeep 663000000; owner earnings 955202070.7506471. Growth capex / owner earnings = 0.24288054549304153.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2025-12-31 (filed 2025-03-18); FY2025: growth capex 286302260.5313697; upkeep 729697739.4686303; owner earnings 1029702260.5313697. Growth capex / owner earnings = 0.27804373313080394.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-03-18); Dividend observations: [[2016,4000000],[2017,80000000],[2018,80000000],[2019,80000000],[2020,81000000],[2021,0],[2022,80000000],[2023,83000000],[2024,177000000],[2025,343000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/FMNB.F.json#2025-12-31 (filed 2025-03-18); FY2025: cash repurchases 30000000 EUR.

### What the price says

The price is 1.4 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-03-18); Closing price 47.2599983215332 EUR; reporting-to-trading FX 1; FY2025 annual sales per share 33.8140547738101; price multiple 1.3976436318467595. FY2025 cash earnings/share 1.7852847581563767. Closing-price date 2026-10-14.

## Monthly share-price history (EUR per share)

- 2016-11: EUR 12.25 per share

- 2016-12: EUR 13.34 per share

- 2017-01: EUR 11.92 per share

- 2017-02: EUR 12.97 per share

- 2017-03: EUR 13.29 per share

- 2017-04: EUR 14.43 per share

- 2017-05: EUR 15.68 per share

- 2017-06: EUR 14.55 per share

- 2017-07: EUR 14.73 per share

- 2017-08: EUR 14.21 per share

- 2017-09: EUR 15.85 per share

- 2017-10: EUR 14.83 per share

- 2017-11: EUR 10.04 per share

- 2017-12: EUR 9.92 per share

- 2018-01: EUR 9.72 per share

- 2018-02: EUR 8.85 per share

- 2018-03: EUR 9.38 per share

- 2018-04: EUR 9.61 per share

- 2018-05: EUR 8.72 per share

- 2018-06: EUR 8.47 per share

- 2018-07: EUR 10.25 per share

- 2018-08: EUR 9.65 per share

- 2018-09: EUR 10.38 per share

- 2018-10: EUR 9.59 per share

- 2018-11: EUR 8.71 per share

- 2018-12: EUR 7.68 per share

- 2019-01: EUR 8.46 per share

- 2019-02: EUR 8.87 per share

- 2019-03: EUR 10.36 per share

- 2019-04: EUR 10.30 per share

- 2019-05: EUR 9.94 per share

- 2019-06: EUR 11.15 per share

- 2019-07: EUR 11.04 per share

- 2019-08: EUR 11.13 per share

- 2019-09: EUR 10.79 per share

- 2019-10: EUR 10.41 per share

- 2019-11: EUR 10.61 per share

- 2019-12: EUR 10.45 per share

- 2020-01: EUR 11.18 per share

- 2020-02: EUR 9.24 per share

- 2020-03: EUR 6.07 per share

- 2020-04: EUR 6.29 per share

- 2020-05: EUR 5.60 per share

- 2020-06: EUR 5.90 per share

- 2020-07: EUR 5.41 per share

- 2020-08: EUR 5.67 per share

- 2020-09: EUR 5.00 per share

- 2020-10: EUR 4.09 per share

- 2020-11: EUR 6.06 per share

- 2020-12: EUR 5.91 per share

- 2021-01: EUR 5.74 per share

- 2021-02: EUR 6.63 per share

- 2021-03: EUR 6.90 per share

- 2021-04: EUR 6.79 per share

- 2021-05: EUR 7.11 per share

- 2021-06: EUR 6.81 per share

- 2021-07: EUR 6.64 per share

- 2021-08: EUR 6.90 per share

- 2021-09: EUR 7.11 per share

- 2021-10: EUR 6.34 per share

- 2021-11: EUR 5.98 per share

- 2021-12: EUR 6.30 per share

- 2022-01: EUR 6.38 per share

- 2022-02: EUR 8.00 per share

- 2022-03: EUR 9.02 per share

- 2022-04: EUR 9.82 per share

- 2022-05: EUR 10.02 per share

- 2022-06: EUR 9.68 per share

- 2022-07: EUR 9.14 per share

- 2022-08: EUR 8.17 per share

- 2022-09: EUR 7.27 per share

- 2022-10: EUR 8.13 per share

- 2022-11: EUR 7.66 per share

- 2022-12: EUR 8.06 per share

- 2023-01: EUR 9.45 per share

- 2023-02: EUR 10.61 per share

- 2023-03: EUR 10.82 per share

- 2023-04: EUR 10.81 per share

- 2023-05: EUR 10.03 per share

- 2023-06: EUR 10.40 per share

- 2023-07: EUR 12.31 per share

- 2023-08: EUR 13.31 per share

- 2023-09: EUR 13.66 per share

- 2023-10: EUR 14.23 per share

- 2023-11: EUR 14.07 per share

- 2023-12: EUR 14.94 per share

- 2024-01: EUR 16.20 per share

- 2024-02: EUR 19.75 per share

- 2024-03: EUR 23.28 per share

- 2024-04: EUR 21.63 per share

- 2024-05: EUR 23.57 per share

- 2024-06: EUR 21.68 per share

- 2024-07: EUR 22.01 per share

- 2024-08: EUR 22.96 per share

- 2024-09: EUR 20.02 per share

- 2024-10: EUR 21.97 per share

- 2024-11: EUR 25.47 per share

- 2024-12: EUR 25.93 per share

- 2025-01: EUR 30.26 per share

- 2025-02: EUR 38.56 per share

- 2025-03: EUR 44.83 per share

- 2025-04: EUR 45.80 per share

- 2025-05: EUR 54.22 per share

- 2025-06: EUR 47.78 per share

- 2025-07: EUR 47.27 per share

- 2025-08: EUR 48.73 per share

- 2025-09: EUR 54.02 per share

- 2025-10: EUR 50.88 per share

- 2025-11: EUR 46.91 per share

- 2025-12: EUR 49.16 per share

- 2026-01: EUR 56.30 per share

- 2026-02: EUR 56.80 per share

- 2026-03: EUR 58.04 per share

- 2026-04: EUR 53.02 per share

- 2026-05: EUR 54.42 per share

- 2026-06: EUR 46.92 per share

- 2026-07: EUR 55.12 per share

- 2026-08: EUR 51.72 per share

- 2026-09: EUR 49.00 per share

- 2026-10: EUR 48.15 per share

## Annual estimated value (EUR per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/529900X4EEX1U9LN3U39/2024-12-31/ESEF/IT/0/529900X4EEX1U9LN3U39-2024-12-31-0-it/reports/529900X4EEX1U9LN3U39-2024-12-31-0-it.xhtml); period 2024-12-31, filed 2025-03-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.