UPDATE 2-Italy's Leonardo outgoing CEO leaves new boss to revise guidance after strong results

Recasts with quote from CEO during post-results call, adds details

New management will have to decide on any revision

Core earnings up 33% yearly in first three months of year

Newly acquired IDV to be fully consolidated from April 1

ROME, May 6 (Reuters) - Italian aerospace and defence group Leonardo LDOF.MI left its 2026 guidance unchanged on Wednesday, despite a 33% rise in first-quarter core earnings, as the outgoing CEO said any revision should be decided by the incoming management.

Wednesday was Chief Executive Roberto Cingolani's last day in office, after the Italian Treasury, which holds a 30% stake, proposed a former Leonardo executive, Lorenzo Mariani, as the new boss of the state-controlled defence group.

Cingolani, who has been at the helm of the group for three years, said performance was very good "in almost all key performance indicators" and that he would have increased guidance for the year were he staying in office.

"We could have proposed a new guidance, but for fairness will leave the choice to the next top management," he said during a post-results call.

He said the acquisition of Iveco Defence Vehicles, finalised in the second half of March, had a "very promising" upside.

WELL ON TRACK TO DELIVER FULL-YEAR GUIDANCE

A 33% year-on-year rise in first-quarter core profit was driven by Leonardo's defence electronics unit, despite a negative impact from exchange rates on U.S. components.

Revenue rose 6.9% at current exchange rates to 4.4 billion euros ($5.16 billion), slightly below an average analyst estimate of 4.5 billion euros.

New orders in the first three months of the year - traditionally the lightest quarter for most defence companies - were up 30.7% at just over 9 billion euros.

"We are very well on track to deliver our full-year guidance, with a very good momentum in all business divisions," Chief Financial Officer Giuseppe Aurilio said in the call.

The order backlog of the state-controlled conglomerate rose to 56.8 billion euros, as a result of the consolidation of the Iveco Defence Vehicles, acquired from truck maker Iveco IVG.MI.

The group said that from April 1, economic and financial results will include the full contribution of the IDV business.

The 1.6-billion-euro acquisition "is a strategically relevant step that strengthens our positioning in land defence, completes our portfolio and consolidates Leonardo's role," Cingolani said in a statement.

($1 = 0.8524 euros)


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.