Leonardo Gains on Latest Saudi Arabian Defense Contract

Shares of Leonardo, the Italian defense and aerospace company, rose sharply on Monday, February 16, 2026, following the announcement of a new contract with the Saudi Arabian Ministry of Defense. The stock gained over 3.5% in trading on Piazza Affari.

Details of the Agreement

The agreement centers around the supply of four C-27J Maritime Patrol Aircraft to the Royal Saudi Naval Forces. These C-27J Spartan aircraft are multi-mission tactical transport planes designed for a variety of roles, including maritime surveillance, search and rescue operations, and cargo transport.

According to Leonardo, the C-27J Spartan provides the capabilities needed to counter modern submarine and surface threats, effectively conduct search and rescue missions, and perform transport and paratrooping tasks. Financialounge reports that Saudi Arabia will become the 21st country to operate the C-27J when the aircraft are delivered in 2029.

Expanding Saudi Arabian Partnership

This new order builds upon a previous agreement with Saudi Arabia in 2025 for two C-27J units dedicated to firefighting, transport, and medical evacuation. Notably, this contract also marks the first acquisition program for the C-27J that includes the integration of weaponry for maritime environments. Financialounge

Other Recent Developments for Leonardo

In late January, Leonardo and Adani Defence & Aerospace signed a memorandum of understanding to establish an integrated industrial ecosystem for helicopter production in India. This collaboration will combine Leonardo’s helicopter design and manufacturing expertise with Adani Defence’s capabilities in aerospace and defense, focusing on the AW169M and AW109 TrekkerM models. Financialounge

Market Reaction

As of mid-session on February 16, 2026, Leonardo’s stock was up over 2% on Piazza Affari, reflecting positive investor sentiment towards the new contract. MSN. The stock is also approaching a target price of €55.50, supported by the recent contract announcements. Borsa e Finanza