Leonardo (LDO-IT) - Q1 2026 Earnings Update

Following the release of Leonardo's strong Q1 2026 results and the subsequent transition of its senior leadership, the core "Sovereign Fortress" thesis outlined in our initiating coverage report on April 2nd, 2026, remains fully intact and is, in fact, structurally reinforced.

Despite broader market volatility, which has driven the share price down approximately 16.3% from €62.64 at the initiation of coverage to the current €52.32 following the unexpected CEO transition announcement and wider weakness across the European defense sector, the Group's underlying performance remains exceptionally strong. We therefore believe the disconnect between share price performance and operational execution reflects short-term market uncertainty rather than any deterioration in Leonardo's intrinsic value or long-term growth prospects.

QuartzSea Research's Historical Coverage on Leonardo S.p.A.

We therefore maintain our Buy rating and issue a new target price of EUR 75.00 , as the following three pillars of our bullish thesis were reinforced this quarter:

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