Leonardo SpA’s Aeronautics Division: A Strategic Reorganization for the Skies Ahead

Leonardo SpA, Italy’s aerospace and defense giant, has taken a bold step to reposition itself at the forefront of global aeronautics with the formal establishment of its new Aeronautics Division on May 6, 2025. Led by Managing Director Stefano Bortoli, the division consolidates the company’s former Aerostructures and Aircraft Divisions under a unified structure, signaling a strategic pivot to capitalize on emerging opportunities in defense, civil aviation, and the rapidly expanding unmanned systems market.

The move, detailed in a press release announcing Bortoli’s appointment, reflects Leonardo’s ambition to streamline operations, reduce costs, and accelerate innovation across three core areas: advanced aerostructures (notably for Boeing’s 787 Dreamliner and other commercial programs), fixed-wing aircraft (including its longstanding ATR regional jet partnership with Airbus), and the high-growth UAS/RPAS sector. With over 11,000 employees and a 2024 revenue base of €3.6 billion, the division now represents a critical pillar of Leonardo’s industrial plan to achieve double-digit profitability by 2026—a target that will hinge on turning around its struggling aerostructures business, which posted a €151 million loss in 2024.

The Bortoli Factor: Leadership in a High-Stakes Arena

Stefano Bortoli, a 25-year Leonardo veteran, brings deep expertise to the role. As former Managing Director of the Aerostructures Division and CEO of ATR, he has navigated complex partnerships and operational challenges. His mandate is clear: leverage synergies between Leonardo’s traditional strengths—helicopter manufacturing, advanced composites, and mission systems—and emerging opportunities in autonomous systems.

Bortoli’s appointment comes amid a sector in flux. The defense industry is undergoing a seismic shift toward multi-domain systems, where drones, AI-driven analytics, and integrated logistics are becoming table stakes. Leonardo’s 2024 industrial plan, updated earlier this year, positions the Aeronautics Division to exploit this shift through initiatives like its collaboration with Turkey’s Baykar Technologies, the maker of the TB2 drone that gained notoriety in the Ukraine conflict. The partnership aims to combine Baykar’s drone platforms with Leonardo’s sensors and avionics, creating a competitive edge in a market expected to grow at 8% annually through 2030.

Financial Crossroads: Profitability Pressures and Growth Levers

The division’s financial trajectory is a mix of promise and peril. While 2024 EBITA of €266 million (before the aerostructures loss) suggests operational resilience, the €151 million drag on aerostructures underscores the need for restructuring. Leonardo has already begun addressing this by rationalizing production lines and renegotiating supplier contracts—a process Bortoli will need to accelerate.

Investors will monitor whether the reorganization translates into margin improvements. The company’s shares, which have fluctuated between €6 and €8 over the past two years, could see upward momentum if the Aeronautics Division meets its 2026 targets. Analysts at Jefferies note that success in UAS/RPAS—a market Leonardo estimates at €15 billion by 2030—could add ~10% to its revenue base.

Navigating the Skies: Risks and Opportunities

The reorganization is not without risks. Supply chain disruptions, trade tensions (notably with Turkey, a key partner), and competition from rivals like Boeing and Airbus’ UAS ventures could test Leonardo’s execution. Yet Bortoli’s emphasis on digitalization and partnerships—such as its role in the EU’s Future Combat Air System—positions the division to defend its European market share while expanding into Asia and the Middle East.

Conclusion: A Strategic Bet on the Future of Flight

Leonardo’s Aeronautics Division is a high-stakes reorganization with the potential to redefine its competitive landscape. With Bortoli’s leadership, a focus on high-margin UAS/RPAS, and a $15 billion addressable market in unmanned systems, the division is well-positioned to deliver on its profitability goals. However, turning around aerostructures and executing complex partnerships will require relentless focus. For investors, the stakes are clear: Leonardo’s ability to transform its industrial plan into tangible results could mean the difference between a stagnant stock price and a takeoff into the skies of growth.

In a sector where adaptability is key, Leonardo’s bet on a unified aeronautics strategy—and its track record of innovation—suggests the company is flying toward a brighter horizon.