Leonardo: This European Defense Giant Is Quietly Fixing Its Biggest Weakness

Leonardo remains a Buy with a new $70.57 price target, implying 15% upside based on a refined 3-year EV/EBITDA valuation. Leonardo exceeded 2025 guidance, posting 10.9% revenue growth, 18.2% EBITA growth, and 20.5% free cash flow growth, with strong order momentum across segments. Margin expansion is underway, with EBITDA margins expected to rise steadily and free cash flow inflecting in 2027; net cash position anticipated by 2027.