{"id":36956,"date":"2024-03-12T19:28:19","date_gmt":"2024-03-12T19:28:19","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2024\/03\/12\/leonardo-banks-on-space-cybersecurity-ai-for-double-digit-growth\/"},"modified":"2026-08-08T01:05:43","modified_gmt":"2026-08-08T01:05:43","slug":"leonardo-banks-on-space-cybersecurity-ai-for-double-digit-growth","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/industry\/2024\/03\/12\/leonardo-banks-on-space-cybersecurity-ai-for-double-digit-growth\/","title":{"rendered":"Leonardo banks on space, cybersecurity, AI for double-digit growth"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">ROME \u2014 Italy\u2019s Leonardo has promised double-digit order and revenue growth by 2028 with a new five-year plan emphasizing investments in space, cybersecurity and artificial intelligence, as well as corporate streamlining.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The state-controlled defense giant predicted that by 2028 its new annual order tally will rise by 16.5% to \u20ac22.6 billion ($24.7 billion) from this year\u2019s expected \u20ac19.4 billion, while revenue will soar 27% to reach \u20ac21.3 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a presentation to analysts and reporters in Rome, the firm predicted its defense-related cybersecurity work would rise fourfold in the period, while its space revenue would increase from \u20ac800 million last year to \u20ac1.4 billion by 2028.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CEO <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2023\/10\/26\/bytes-bullets-and-broader-horizons-new-leonardo-boss-teases-strategy\/\">Roberto Cingolani<\/a> said a new space division was being set up and due diligence was being carried out for a dozen potential small acquisitions in the space, cyber and unmanned fields.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe world geopolitical scenario calls for a new global security paradigm, where we aim to play a proactive role in the evolution of the European defense sector,\u201d Cingolani said in a statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CEO promised a greater use of AI, high-powered computing and digitalization across the firm\u2019s divisions, sparking communication between managers \u201cthat have never talked to each other.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/global\/europe\/2024\/02\/19\/leonardo-eyes-an-italian-gun-for-romes-new-leopard-2-tanks\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"184\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-1259091210.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Leonardo eyes an Italian gun for Rome\u2019s new Leopard 2 tanks<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">An agreement with manufacturer KNDS envisions significant &quot;Italianisation&quot; of the latest-generation main battle tank, according to a Leonardo executive.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, the firm will make \u20ac1.8 billion in savings over the five-year period by tightening up on supplier payments, slimming down its corporate HQ and reducing the 100-120 million euro annual travel budget of staff.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A review of Leonardo\u2019s electronics products to identify non-performing items could lead to the scrapping of 20% of them, Cingolani said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The CEO said the firm was ending its five-year involvement in Skydweller, a U.S.-Spanish program to develop a the world\u2019s first fully solar powered unmanned aircraft.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s a \u20ac25 million program that can be easily replaced by a \u20ac100,000 aerostat balloon,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Shares in Leonardo rose on March 12 after the plan was announced, continuing an upward trend reflecting the boom in defense stocks following Russia\u2019s invasion of Ukraine.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere are still margins for growth, the company\u2019s market capitalization is still low,\u201d Cingolani said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He restressed his belief that Leonardo must play a role in the greater integration of Europe\u2019s defense industry through alliances and joint ventures to promote the launch of fewer new products \u2013 saving funds and avoiding overlaps.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The perennial drive to create better cross-border tie-ups in Europe has taken on new urgency as the bloc faces a growing threat from Russia.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe good thing is people are ready to talk about it, although due to fear,\u201d Cingolani said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cI don\u2019t know if this will be enough for Europeans to understand that at least in defense they need to get together. The point is that every country in Europe has its own aircraft, its own tank, its own torpedo, and when you want to achieve a joint European defense you have to give up something,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Cingolani warned that the EU\u2019s anti-trust rules <a href=\"https:\/\/www.defensenews.com\/global\/europe\/2024\/02\/15\/eu-regulators-must-let-defense-firms-merge-freely-leonardo-boss-urges\/\">risked hindering mergers<\/a> that would beef up Europe\u2019s defense capability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThere are areas where rules for the free market apply in peacetime but in a war economy, free market and anti-trust rules can be an obstacle to global security,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cCompanies can be proactive and we have a model that works well in Europe &#8211; MBDA &#8211; a triple joint venture. Maybe we should consider triple joint ventures,\u201d he added, referring to the missile company\u2019s distributed ownership across Airbus, BAE Systems and Leonardo, with subsidiaries in France, Italy, Germany, Spain and the U.K.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In December, Leonardo signed to create a \u201cstrategic alliance\u201d with KNDS &#8211; the consortium of Germany\u2019s Krauss-Maffei Wegmann and France\u2019s Nexter &#8211; to work on the European MGCS next-generation tank program, as well on the Leopard tanks Italy is purchasing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When asked if Leonardo would take a stake in KNDS, Cingolani said, \u201cIn nature and life nothing is impossible,\u201d but he cautioned that the matter was \u201cvery complex,\u201d adding: \u201cLet\u2019s see the technology first, then let\u2019s see if there are synergies and compatibilities in the market, if it\u2019s convenient and cost effective, and then see if there is an agreement.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He added, \u201cThere are technical discussions,\u201d but said no talks had taken place at the governmental level.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Italy&#8217;s state-controlled defense giant predicted that by 2028 its annual order tally will rise to $24.7 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