ROME (Reuters) – Italian President Leonardo will focus on security operations and invest in digitalization, artificial intelligence and interconnected platforms over the next five years, a defense group said on Tuesday.
“The world's geopolitical scenario calls for a new global security paradigm, and we are committed to playing an active role in the evolution of the European defense sector,” CEO Roberto Cingorani said in a statement. That's what I'm aiming for.”
Mr Leonardo unveiled an industrial plan for 2024-2028, saying he would strengthen core businesses such as helicopters, electronics and aircraft, while also leveraging opportunities in cybersecurity and space, seen as key to future defence.
The state conglomerate said its cumulative order book would reach 105 billion euros ($114.77 billion) at the end of 2028, with a compound annual growth rate of 4%.
Sales are expected to rise by an average of 6% a year to 95 billion euros between 2024 and 2028, with core profits expected to reach 2.5 billion euros, up from the 1.44 billion euros expected at the end of this year.
Free operating cash flow (FOCF) is expected to almost double from 700 million euros at the end of this year to 1.35 euros by the end of 2028.
“The industrial plan is designed to unlock Leonardo's business growth potential, deliver stronger top-line growth, achieve double-digit profitability by 2026, and double FOCF by the end of the plan. We have defined our strategy,” Singorani said.
He promised “large-scale digitization and rationalization of products and services, efficiency and cost reduction initiatives across the group”, which he promised would result in total savings of €1.8 billion over the business plan period.
(1 dollar = 0.9149 euro)
(Reporting by Julia Segreti; Editing by Gavin Jones)