Why you as an investor should take a look at Leonardo right now
Imagine this: you’re strolling through Piazza del Duomo in Milan. You hear the buzz of investors searching for the next growth opportunity. More and more, you hear the name Leonardo S.p.A. But what exactly makes this Italian defence company so attractive for you as an investor?
How Leonardo S.p.A. makes its money
Leonardo earns its revenue mainly from three sources:
- The sale of advanced technology: think of military helicopters, radar systems, drones and even technology for space.
- Long-term service contracts: after a sale, Leonardo keeps earning money through maintenance and updates.
- Software and technological solutions: they provide smart cybersecurity for defence and civil aviation.
Leonardo works with governments, airports and major companies worldwide. You might spot their helicopters at Schiphol, or their radar systems along the Rotterdam harbour. Did you know the Dutch police sometimes use Leonardo technology?
Where Leonardo stands out from the rest
- Technological advantage: Leonardo excels in helicopters and radar. They invest heavily in research and innovation. This keeps them ahead of the game, even against giants like Lockheed Martin and Airbus.
- Strong customer relationships: Leonardo often signs contracts for ten years or more. That means predictable income. As an investor, you know where you stand.
- Wide offering: From defence to civil aviation, and from cybersecurity to space—Leonardo covers it all.
- International network: Thanks to partnerships in projects like Eurofighter and NHIndustries, Leonardo is part of the biggest defence deals in Europe and NATO.
Market growth: What can you expect?
Globally, defence budgets are rising, especially due to tensions in Europe and Asia. Governments want to invest more in security, new technology and cyber protection. Leonardo benefits from this. Defence budgets are also rising in the Netherlands .
Digitalisation within defence brings new opportunities. Leonardo invests in smart software, AI and data analysis. Their drones already fly over the North Sea, guarding vital energy infrastructure.
The space industry is growing rapidly. More countries want their own satellites or launch systems. Leonardo is building the future right alongside them.
What should you pay attention to as an investor?
Of course, there are risks. Defence spending is cyclical and depends on political decisions. Export regulations and sanctions can change overnight. Competition is fierce: companies like BAE Systems and Thales are chasing the same deals.
Still, analysts like Tasha Keeney and Alex Zukin see Leonardo as an interesting investment. They see a lot of potential in Leonardo’s technological edge and stable, recurring income. The company’s approach seems resilient in the face of sudden changes.
Have you considered investing in companies like Leonardo? Ask yourself: do you want to benefit from growth in defence, digitalisation and space?
