Leonardo SpA

JPMorgan said in a note Wednesday that European defense investors are favoring companies with long-duration order books and hard-to-replace products, while marking down those whose technology could be displaced. The European defense sector has underperformed local markets by about 6% this year on average, though with wide variation between individual stocks, analyst David Perry noted. JPMorgan rates BAE Systems, Leonardo and Babcock Overweight, saying all three have those defensive characteristics, while investors have significantly de-rated companies such as Rheinmetall, CSG and Renk on fears their technology could be displaced. JPMorgan placed MTU Aero Engines and Leonardo on Positive Catalyst Watch, ahead of MTU's capital markets day on Nov. 30 and Leonardo's industrial plan update in March 2027, and put Rheinmetall on Negative Catalyst Watch, saying it does not expect the company to cut its 2030 sales goal of 50 billion euros even though the bank's own forecast is 36.9 billion euros. Perry said the debate over technology displacement is complex and the answer will not be clear for many years, making investor events at Rheinmetall on Nov. 27 and Renk on Dec. 8 important, and added that Rolls-Royce and Safran should remain strong performers over the medium term and are core holdings.

HawkEye 360, Inc. and Leonardo S.p.A. announced a Memorandum of Understanding establishing a structured collaboration to integrate HawkEye 360's radio-frequency sensing capabilities into Leonardo's Telespazio and e-Geos space service solutions for European customers. Under the MoU, Leonardo will lead overall data integration and manage institutional engagement across Europe through its geospatial solutions, while HawkEye 360 will provide dedicated RF data capacity tailored to European operational needs. The first phase focuses on integrating a customized RF layer into Leonardo's global Intelligence, Surveillance, and Reconnaissance service offering, including exclusive reserved capacity for defined European areas of interest, with data delivered through Italian ground stations and EU-based cloud infrastructure to reduce latency and enhance European data sovereignty. The MoU also outlines a phased pathway for deeper collaboration, including cooperation on payload technologies such as RF localization, E/O and hyperspectral, manufacturing and hosting on respective systems, and expanded interoperability between HawkEye 360's RF analytics and Leonardo's sensing solutions. HawkEye 360 Chief Executive Officer John Serafini said the collaboration represents an important step in supporting European nations with reliable, integrated RF insights embedded within their own architectures, while Massimo Claudio Comparini, Managing Director of Leonardo's Space Division, said it strengthens Leonardo's role as a trusted European integrator of sovereign space-based intelligence.

Airbus is gauging interest from prospective buyers for its U.S. space business, according to The Financial Times, as part of a broader strategy to create a new pan-European entity to better compete with Elon Musk's SpaceX and Chinese rivals. The unit, which operates a factory in Florida and produces the Arrow family of small satellites, is estimated to generate several hundred million dollars in annual sales, though Airbus does not publicly disclose its revenue. The Merritt Island facility employs more than 200 people, a fraction of the 11,000 workers in Airbus's global space operations. The divestment plans are separate from the proposed Bromo joint venture with Italy's Leonardo and France's Thales, which aims to rival Starlink and Chinese players. Airbus declined to comment on market rumors, but the sale comes as the company seeks to revive its underperforming space business, which incurred €989 million in charges in 2024.

StandardAero has been selected by GE Aerospace to build, maintain and overhaul the CT7-2E1 engines that will power the United Kingdom's New Medium Helicopter fleet. The agreement covers 46 engines plus spares, replacement parts and long-term support for 23 Leonardo AW149 helicopters ordered under the UK Ministry of Defence's New Medium Helicopter program, with deliveries scheduled between 2030 and 2033. Work will be performed at StandardAero's Gosport facility in southern England, which will also handle engines for future export aircraft. The contract expands StandardAero's military engine maintenance business and its long-standing relationship with GE Aerospace, while strengthening its position in the UK defense market. Financial terms were not disclosed.

Accenture and Leonardo have signed a multi-million euro contract with the NATO Communications and Information Agency to build a secure cloud platform for the Protected Business Network program. The contract is estimated to be worth about 200 million euros, or 235 million dollars, over the next seven years. Signed at the NATO Summit Defense Industry Forum in Turkey, the agreement marks the first implementation phase of one of NATO's largest digital transformation programs. The platform will support the deployment of secure cloud services to about 29,000 users across the NATO Alliance, replacing legacy systems with a standardized, secure cloud operating model. Leonardo will implement a Zero Trust Architecture secured by its proprietary Global Cybersec Platform, an AI-based cyber defense platform.

Italian defence group Leonardo is preparing to increase its stake in the National Strategic Hub, which manages cloud services for Italy's public administration, by acquiring an additional 10% from state-owned IT company Sogei, sources told Reuters. The deal, which could be announced by the end of this month, would lift Leonardo's holding to 35% from 25%. The transaction is part of a broader shareholder overhaul aimed at placing the cloud company under the control of two shareholders with a clear industrial rationale, with Poste Italiane set to acquire a 20% stake from state lender CDP and eventually targeting 65% through its takeover bid for TIM, currently the largest shareholder with 45%. Under the reshuffle, Poste would appoint the chief executive while Leonardo would nominate the chairperson. PSN is central to Italy's cloud migration programme backed by about €2 billion from the European Union's post-pandemic Recovery Fund.

The UK government announced on the 3rd that it has signed a £4.6 billion contract with Edgewing, the joint venture responsible for design and development, to manufacture the next-generation fighter jet being co-developed with Japan and Italy. This moves the Global Combat Air Programme into the next phase of development, and Minister for Defence Procurement Pollard described signing the contract alongside Italy and Japan as a major step forward towards delivery. On the 30th of last month, the UK decided to contribute £8.6 billion over four years as its share of GCAP funding. Under GCAP, the UK's BAE Systems, Italy's Leonardo, and Mitsubishi Heavy Industries are developing a sixth-generation stealth fighter with the aim of operational deployment by 2035, and Edgewing is jointly funded by BAE, Leonardo, and the Japan Aircraft Industrial Enhancement Organization.

Airbus, Leonardo, and Thales have jointly requested EU approval for a three-way merger of their space operations, aiming to create a single European space group to compete more directly with global players such as SpaceX. EU competition authorities are expected to review potential impacts on market concentration, pricing power, and industrial supply chains. If regulators clear the transaction, the resulting structure could influence how capital, talent, and R&D budgets are allocated across European aerospace. Investors in Airbus will likely watch for updates on the review process, any required remedies, and how governance and ownership of the merged unit are ultimately defined.

The global military helicopters market is projected to grow from $35.70 billion in 2025 to $46.36 billion by 2035, at a compound annual growth rate of 2.70%, according to a new report by SNS Insider. The transport and utility helicopters segment held the largest revenue share in 2025 at 42.58%, while the attack helicopters segment is expected to grow fastest at a CAGR of 3.54%. North America accounted for 36.67% of the market in 2025, with the U.S. market alone estimated to reach $14.73 billion by 2035. Asia-Pacific is forecast to register the highest regional CAGR of 4.26%, driven by rising defense spending and indigenous development programs in China, India, South Korea, and Japan. Key players include Lockheed Martin's Sikorsky, Boeing, Airbus Helicopters, and Leonardo.