Leonardo: Stock Price Doubled, Company Now Has To Deliver On Margin Expansion

  • Leonardo S.p.a.'s stock has surged nearly 100%, fueled by Europe's push for security autonomy, but current valuations leave less margin of safety. Q1 results showed strong revenue growth and global order diversification, yet EBITA margins remain underwhelming, especially outside the aircraft segment. Loss-making aerostructures and struggling space segments weigh on profitability, but cost initiatives and new ventures offer turnaround potential.