Chief Executive Lorenzo Mariani said during Leonardo’s Q2 2026 earnings call that the deal gives the group direct access to what he called the “land battlefield”. Leonardo plans to combine Iveco’s capabilities with Oto Melara to create a new division focused on a market benefiting from higher defence spending.
The acquisition also brings manufacturing sites and production capacity that could be used by other Leonardo businesses. Mariani said the additional industrial footprint was part of the strategic value of bringing Iveco into the group.
Leonardo sees the expansion as part of a broader shift towards a more diversified defence portfolio. Mariani said the group now spans aircraft, helicopters, electronics, cyber, space and land systems, giving it greater exposure to multi-domain requirements.
Iveco Defence Vehicles has been consolidated into Leonardo’s accounts since 1 April 2026. Chief Financial Officer Giuseppe Aurilio said the business was performing well during its first reporting period under Leonardo ownership.
The unit contributed roughly €600 million to €700 million of orders and about €400 million of revenue in the period reported. Leonardo expects around €1.2 billion of orders and €1.1 billion of revenue from Iveco Defence Vehicles over the nine months included in its 2026 accounts.
Profitability will depend partly on the mix between armoured vehicles and trucks. Aurilio said the second quarter was weighted more heavily towards the higher-margin armoured business, while the full-year mix is expected to be more balanced.
Leonardo is targeting an 11% return on sales for the business over the nine-month consolidation period. Management has also established a dedicated integration team to bring Iveco Defence Vehicles fully into the group’s operations.
Supply-chain security has been one of the priorities during that process. Aurilio said the issue had initially required attention because Leonardo was not an automotive group, but management was now in a stronger position to assess the future structure of the business.
That review includes the truck operations, which could eventually be sold. Rheinmetall remains one potential buyer, although management stressed that no binding agreement had been reached and other parties had also expressed interest.
Mariani said Leonardo was in no hurry to make a decision on the truck business. The immediate priority is integrating the acquired operations while using Iveco’s industrial capacity to support Leonardo’s expansion in the land domain.
The acquisition cost Leonardo €1.6 billion and was a major factor behind the group’s higher net debt. Aurilio said net debt stood at €3.2 billion after the transaction, dividends and first-half cash flow effects.
For Leonardo, the strategic impact extends beyond the financial contribution of Iveco Defence Vehicles. Mariani said the combination with Oto Melara gives the group a dedicated platform for growth in land systems while adding manufacturing capacity that can be deployed elsewhere across the company.
