Leonardo expects more deals as Europe ramps up defense spending
📰 source: cnbc_topnews · 💼 business
leonardo's new ceo lorenzo mariani expects more acquisitions to support growth, telling cnbc the company will keep pursuing deals and partnerships. europe's defense industry is scrambling to meet demand from russia's invasion of ukraine and higher nato targets, with contractors using m&a to add tech and secure supply chains.
the company bought iveco defence vehicles for 1.6 billion euros ($1.8 billion) in march, and its u.s. arm leonardo drs agreed to buy raft for $450 million this week. leonardo also agreed to acquire british cybersecurity firm becrypt earlier this year. meanwhile, italian peer fincantieri unveiled a 'second m&a wave' with stakes in four underwater tech companies, and german henseldt bought dutch optics firm nedinsco.
leonardo's order backlog hit a record 59 billion euros in june, up 30% from a year earlier. the company raised its full-year guidance to 28.2 billion euros in new orders, and now sees ebitda of 2.21 billion euros. shares are up about 11% year-to-date. defense stocks have been under pressure after a boom, as investors question whether valuations outran production capacity.
why it matters: record backlog and raised guidance show european defense contractors are cashing in on surging spending, even as shares lag after a long boom.
source: cnbc_topnews
sentiment: +0.60 · impact: 0.50