Italy’s Leonardo, long respected within the aerospace and security sectors, is currently riding a wave of renewed global defence investment that is transforming both its fortunes and its strategic significance.

The Rome-based group has unveiled a strikingly ambitious industrial plan, reflecting not only confidence in its own capabilities but also the profound shifts taking place in global security policy. The company forecasts annual orders reaching €32 billion by 2030, compared with €23.8 billion recorded last year, while revenues could climb to €30 billion over the same period—roughly a 50 per cent increase on current levels.

These figures are not simply optimistic projections. They are grounded in a remarkable run of recent performance. Leonardo’s 2025 results showed revenues rising to €19.5 billion, up 11 per cent year on year, while new orders increased by 15 per cent to €23.8 billion. Profitability also strengthened, with operating earnings climbing to €1.75 billion and net debt sharply reduced.

In other words, the firm has already demonstrated that it can translate a rapidly changing strategic landscape into tangible industrial success.

Much of that success stems from the breadth of Leonardo’s technological portfolio. Defence electronics—ranging from radar systems to advanced sensors and electronic warfare equipment—has emerged as a cornerstone of the business, accounting for roughly half of the group’s revenue. The company has recently delivered electronically scanned radars and defensive systems for the Eurofighter fleet, alongside sophisticated combat management systems for naval vessels.

The firm’s American subsidiary, Leonardo DRS, also plays a crucial role in this ecosystem, contributing advanced electronics for US military platforms including the Navy’s next-generation Columbia-class submarines and sensors for armoured vehicles.

Yet Leonardo’s leadership is not content merely to expand existing product lines. The company is actively repositioning itself at the forefront of a new era in defence technology—one defined as much by data and digital infrastructure as by traditional hardware. Chief executive Roberto Cingolani has spoken of the need to move “from bullets to bytes”, reflecting the rising importance of cyber security, artificial intelligence and digital command systems within modern warfare.

At the centre of this strategic shift lies the intriguingly named Michelangelo Dome, a multi-layered air defence architecture designed to counter drones, missiles and other emerging threats. Leonardo believes the system could generate as much as €21 billion in business over the coming decade, an indication of how rapidly demand for integrated defensive networks is expanding.

Behind these developments lies a broader trend that is reshaping the entire defence sector. Global military spending is expected to surge dramatically in the years ahead, with estimates suggesting it could exceed $1 trillion annually by 2030—more than double the level recorded in 2020.

For companies with the right expertise and industrial depth, the opportunity is immense.

Leonardo’s leadership clearly believes it is well positioned to seize it. The group’s industrial strategy is accompanied by a significant expansion of its workforce. Since 2023 the company has grown from roughly 51,000 employees to more than 62,000, and it expects to reach around 75,500 staff by 2030.

That growth reflects not only increased demand for equipment but also the need for highly skilled engineers and digital specialists capable of developing the next generation of defence technologies. Notably, Leonardo plans to recruit thousands of younger employees in the coming years—an investment in talent that will help secure the company’s technological leadership well into the next decade.

Financial markets have taken notice. The firm’s shares recently surged to record highs following the unveiling of its new growth targets, a clear sign that investors see Leonardo as a central player in Europe’s rapidly evolving defence landscape.

What makes Leonardo’s story particularly compelling, however, is that it embodies a broader revival of European industrial capability. For years, critics worried that Europe’s defence sector was fragmented and underfunded. Today, the picture looks very different. Nations across the continent are investing heavily in advanced military technologies, from air defence networks to next-generation combat aircraft, creating a vibrant ecosystem in which companies like Leonardo can thrive.

In this context, the Italian group’s success represents more than a corporate triumph. It is also a reminder that Europe still possesses the engineering prowess and industrial ambition required to compete on the global stage.

If the company delivers on its bold projections—and recent performance suggests it might—Leonardo could emerge as one of the defining defence champions of the coming decade: a firm equally at home designing sophisticated radar systems, developing digital warfare platforms and safeguarding the security architecture of an increasingly uncertain world.

For investors, policymakers and allies alike, that prospect is not merely encouraging. It may prove indispensable.

Main Image: Door U.S. Navy photo by Boatswain’s Mate 2nd Class Alexis M. Diaz – U.S. defenseimagery.mil photo VIRIN: 070908-N-2429D-001, Publiek domein, https://commons.wikimedia.org/w/index.php?curid=5238459

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