Leonardo on the Rise – Operational Strength and Full Order Books
Leonardo kicked off the 2026 fiscal year with operational momentum. In the first three months, revenue rose to EUR 44.5 billion, up 6.9% from the same period last year. Particularly noteworthy is the significant increase in operating profit, which rose by one-third to EUR 435 million. While the unadjusted net profit appears lower in a direct comparison, adjusting for one-time effects from the previous year reveals a significant increase in actual profitability.
A key pillar of this success is the continued strong order backlog. In the first quarter alone, the technology group secured new projects worth EUR 9 billion, bringing the total value of outstanding orders to EUR 57 billion. A current example of this demand is a large, multi-year contract for helicopter deliveries valued at over half a billion euros. In addition to the traditional aerospace division, which grew at a double-digit rate, digital security is increasingly proving to be a lucrative field for the future. Here, the company recorded growth rates of nearly 20%, driven by global demand for modern defence technology and cyber protection.
Group management is extremely confident about the rest of the year. The financial targets set to date have been fully confirmed, with an annual revenue of approximately EUR 21 billion being targeted. Given stable demand in the core defence and electronics sectors and well-filled order books, Leonardo is well-positioned to further expand its market share and maintain its high operational pace.
Volatus Aerospace – NATO, AI, and War Provide a Tailwind
The global drone market is increasingly emerging as a strategic sector of the future. Rising defence budgets, geopolitical tensions, and the growing need for critical infrastructure surveillance are driving massive demand for autonomous systems. Experts expect the drone defence market alone to grow to over USD 20 billion by 2030. At the same time, civilian applications such as pipeline and power grid inspections are rapidly gaining importance. Companies like Volatus Aerospace, which combine hardware, software, and operational services, could benefit disproportionately from this trend.
The Canadians do not see themselves as a pure drone manufacturer, but rather as an integrated aerospace platform. The company combines drones, manned aviation, software, training, and data services into a closed ecosystem. This creates multiple revenue streams along the entire value chain. Particularly attractive are the recurring revenues from service contracts and the new SKYDRA SaaS platform for drone defence, whose margins, according to the company, could reach up to 85%.
In the defence sector, Volatus also benefits from Canada’s new Defence Industrial Strategy. Over CAD 80 billion is expected to flow increasingly to domestic suppliers in the future. With its own production and system integration base in Québec and close ties to NATO, Volatus is strategically well-positioned. More than 100,000 trained drone pilots and contracts from NATO countries underscore the company’s operational strength. Recently, retired US Air Force General Peter Fesler joined the advisory board.
The figures also show dynamic growth. In 2025, revenue rose by 26% to CAD 34 million. At the same time, Volatus has an order pipeline of more than CAD 600 million and approximately CAD 40 million in liquidity. Analysts therefore see significant potential and are setting price targets of up to CAD 1.25. Should the drone boom continue to gain momentum, Volatus Aerospace could be among the most exciting growth stories in the sector.
Hensoldt Exceeds Operational Forecasts
Hensoldt, too, looks back on the most successful start to a fiscal year in its history. In the first quarter of 2026, the electronics specialist increased its revenue by 25%, corresponding to approximately EUR 496 million. Particularly noteworthy is the order backlog, which now stands at EUR 9.8 billion. This enormous sum significantly exceeded many experts’ forecasts and provides a high degree of planning certainty for the coming years. The operating profit margin also developed in line with expectations, underscoring the Group’s solid financial position. Based on this stable foundation, management confirmed the previous targets for the entire 2026 fiscal year.
This dynamic growth is primarily driven by the high global demand for modern sensor technology and electronic reconnaissance systems. Hensoldt is involved as a key partner in major European defence programs, including the Eurofighter and the IRIS-T air defence system. Another decisive strategic milestone is the successful integration of the IT service provider ESG. Through this acquisition, the company is significantly expanding its portfolio in the area of digital services and military software. As a result, Hensoldt is increasingly positioning itself as a full-service systems provider that delivers hardware and software from a single source. This technological integration is proving to be a key driver of the ongoing flood of new orders.
Although the operating results were thoroughly impressive, the capital market initially reacted with moderate share price declines. Market observers interpret this primarily as classic profit-taking following a strong rally in the share price. Despite the short-term sell-off, analysts view the fundamental situation extremely positively, as the ratio of new orders to realized revenue is well above the industry average.
The high visibility of future earnings from well-filled order books reinforces confidence in long-term value growth, regardless of current stock market fluctuations.
Leonardo impresses with strong earnings growth and a record-high order backlog in the defence and cybersecurity sectors. Volatus Aerospace is benefiting from the drone supercycle and combines proximity to NATO with scalable software and service revenues. Hensoldt is further expanding its position as a key provider of modern sensor technology and electronic reconnaissance, driven by full order books and strategic acquisitions.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a “Transaction”). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
