Workers assemble a Leonardo AW139 helicopter in the production workshop at the Leonardo factory in Varese, Italy, Thursday, March 20, 2025.
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Italian defense company Leonard said Thursday it was “positioned for strong growth” as European defense companies stand to benefit from the war in Iran, just as they were boosted by the war in Ukraine.
Leonardo revealed its intention to double its profits by 2030, a day after its German counterpart. Rheinmetall plan your sales could increase up to 45% this yearas both companies have record order books.
Leonardo CEO Roberto Cingolani told investors that war was “getting faster and more dangerous,” and warned of the rise of hybrid threats that “increase uncertainty and operational complexity.”
Rheinmetall said it was in a “prime position” to arm the United States amid the war in Iran, with CEO Armin Papperger telling investors that “over the next 10 years there will be a huge need” for its products.
Rheinmetall shares fell 8% after the forecast, described as “realistic but moderate” by a Jefferies analyst, who added that investors had high expectations for a share price up 1,700% since the start of 2022.
The war in Iran, which is entering its 13th day, has refocused attention on defense companies, which are seeing increased demand regardless of their specific focus in the sector.
Leonardo is positioning itself as a player in digital defense, investing in defense electronics and interconnected platforms such as the “Michelangelo Dome”, capable of detecting and neutralizing aerial threats similar to the Israeli Iron Dome. Rheinmetall is a leading supplier of land systems such as tanks and munitions.
The Swedish Saab specializes in combat aircraft, while the British Bae Systemsthe largest European defense company by revenue and market capitalization, has a broad portfolio of military equipment ranging from nuclear submarines to the Eurofighter Typhoon.
Annual turnover for Rheinmetall, Leonardo, Bae Systems, France ThalesGermany Hensoldtand Saab grew by an average of 57% between 2021 and 2025.
These companies also saw their order intake increase significantly during the same period, which is an indication of their future sales.
Rheinmetall and Saab experienced the most explosive growth of 323% and 284%, respectively, based on unaudited figures for 2025.
On average, order intake increased by 135%. Thales’ order intake increased by 27% between 2021 and 2025.
Analysts at Barclays earlier this week raised their recommendation on Leonardo from neutral to overweight, saying the U.S.-Iran conflict contributes to the narrative of a booming defense sector in the near term, but that Leonardo has higher earnings momentum than its peers.
Its diversified portfolio and low exposure to Ukraine also provide resilience to the potential impact of a ceasefire, they added.
