Leonardo Gains Ground as EU Fast-Tracks Satellite Venture and US Unit Wins Drone-Defense Work
Published on 10/16/2026 at 16:32 | Editorial boerse-global.de
Leonardo shares advanced 3.9% to EUR 50.23 in European trading, lifted by a trio of developments spanning Brussels, Washington and Rome. The move narrows the gap to the stock's 52-week high of EUR 66.24, a level reached in March, though the equity remains well short of that peak.
The most immediate catalyst came from EU competition authorities, who according to media reports cleared Leonardo's acquisition of Iveco Defence Vehicles without conditions. The deal carries an estimated value of roughly EUR 1.6 billion and bolsters the Italian group's land-systems business. The same transaction also covers Astra, rounding out a consolidation of defense vehicle assets.
Brussels Signals Faster Path for Project Bromo
A second regulatory thread is moving in parallel. Bloomberg reported that the European Union is preparing an expedited antitrust review of Project Bromo, the space joint venture uniting Leonardo, Airbus and Thales. The structure is designed as a European counterweight to US rivals such as SpaceX.
Under the planned ownership split, Airbus would hold 35%, with Leonardo and Thales each taking 32.5%. The partners laid the groundwork with a memorandum of understanding in October 2025 and have yet to file their formal merger notification, though a submission is expected in the coming weeks. Earlier discussions were aimed at resolving potential competition concerns before the filing itself.
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Should those concerns be settled, a Phase I review lasting a little over a month could deliver clearance. If objections persist, a multi-month in-depth investigation remains an option. European Commission President Ursula von der Leyen has backed the venture as a route to a European champion, while Competition Commissioner Teresa Ribera stressed there would be no automatic approval. Reuters reported that space group OHB is weighing legal action should the deal be waved through, and Spain's Indra has warned of reduced competition.
On the numbers from 2024, the combined space business would employ around 25,000 people and generate annual revenue of roughly EUR 6.5 billion. Operations are targeted to begin in 2027.
US Subsidiary Lands Pentagon and NASA Contracts
Across the Atlantic, Leonardo DRS delivered a cluster of wins. The US arm secured a three-year framework agreement worth up to USD 500 million with the Pentagon task force JIATF-401, under which it can supply sensors for countering small unmanned aircraft. The same unit picked up a ten-year prime contract in NASA's SEWP VI procurement program, giving US federal agencies a channel to order IT hardware and services through 2036. A further production order from the US Army, valued at USD 63 million, covers FWS-I thermal weapon sights.
Rome's Budget Plans Add Tailwind
Italian fiscal policy is reinforcing the operational momentum. The 2027 budget plan envisions lifting national defense spending from 1.3% of gross domestic product this year to 1.6%, translating into roughly EUR 8 billion in additional funding. Analysts at Intermonte expect the effects to become tangible from 2027 and 2028, pointing to the DDX naval program, where Leonardo stands to capture orders worth EUR 1.7 billion including options.
That follows a EUR 3.7 billion contract signed in September by the Orizzonte Sistemi Navali joint venture for two DDX destroyers, adding to a pipeline that has been expanding sharply. First-half 2026 orders climbed 45% to EUR 16 billion, with revenue up 12% to EUR 10 billion. The next set of figures, scheduled for release by Leonardo's board on November 4, will offer a clearer read on the group's most recent trajectory.
With geopolitical tensions in Eastern Europe still running high and European defense capabilities undergoing a broad reassessment, Leonardo is currently stacking government backing and concrete contract awards across several core international markets.
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Leonardo Stock: New Analysis - 16 October
Fresh Leonardo information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
