Leonardo Raising estimates for acquisition of Iveco Defence Vehicles; reassuring CFO road show

Research evidence excerpt

Leonardo Raising estimates for acquisition of Iveco Defence Vehicles; reassuring CFO road show

J P M O R G A N Europe Equity Research

13 May 2026

Leonardo Overweight

LDOF.MI, LDO IM

Raising estimates for acquisition of Iveco Defence Price (12 May 26):€50.0

Vehicles; reassuring CFO road show ▼Price Target (Dec-27):€70.0 Prior (Dec-27):€77.0

We increase our 2026E-30E EPS by 5-6% pa (Table 2) to reflect the acquisition of

Iveco Defence Vehicles (IDV). On May 8th we hosted a reassuring virtual roadshow European Aerospace & Defense

with Leonardo’s CFO, Giuseppe Aurilio; inside this note we include a write-up of David H Perry, CFA AC

comments made by Mr Aurilio. LDO remains one of our top picks in the European (44-20) 7742-5606

Defence sector. We trim our SOTP-based Dec-27 PT to €70 from €77, as explained david.h.perry@jpmorgan.com

J.P. Morgan Securities plc

below; this still leaves implied upside of 40% over the next c19 months.

Lucy Fitzgerald

• Strong Q1 26 results; potential upside to FY26 guidance (pre M&A): On (44 20) 3493-5251

May 6th LDO reported Q1 26 EBITA 10% ahead of the company-compiled lucy.fitzgerald@jpmorgan.com

consensus. Outgoing CEO Roberto Cingolani said that he would have liked to

Jash R Naik

raise FY26 guidance (on a constant perimeter) but that it was a decision to be

(91 22) 6157-3797

taken by the new CEO (Lorenzo Mariani). We believe that LDO can raise its jash.naik@jpmchase.com

guidance in the coming year(s) due to self-help (it still has margins well below J.P. Morgan India Private Limited

peers on like-for-like accounting) and its exposure to the US and Middle East

defence markets (where defence budgets are likely to be better than currently Specialist Sales contact details:

baked into our forecasts). Sam Edmunds - Specialist Sales -