Leonardo’s AI-Powered Air Defense System to Deploy in Ukraine Amidst Global Security Spending Surge
In a few months, Ukraine is set to implement the first iteration of an AI-driven air defense system developed by Leonardo, as confirmed by the company’s CEO, Roberto Cingolani. The “Michelangelo Dome” system is designed to intercept, track, and neutralize airborne threats.
Rising Global Security Concerns Drive Innovation
The development of Michelangelo Dome is a key component of Leonardo’s industrial plan update for 2026-2030, which anticipates at least 6 billion euros in business opportunities related to the integrated defense system. The system is capable of neutralizing a ballistic missile 75 km from the target. This advancement comes as global security spending is projected to reach 1 trillion dollars annually by 2030, a significant increase from the approximately 0.4 trillion dollars spent in 2020.
Cingolani highlighted the dramatic global context, noting the presence of over 60 ongoing conflicts worldwide. Recent developments in Iran and the Gulf region have fueled a surge in demand for air defense systems, particularly those capable of countering missiles and drone swarms – a trend originating in Ukraine. He emphasized the need for rapid response capabilities.
Leonardo’s Strategic Plan and Financial Projections
Leonardo’s updated plan addresses threats including hypersonic missiles, ballistic missiles, drones, and cyber attacks, aiming to provide security systems for defense, transportation, infrastructure, agriculture, and financial services. The company projects order growth to 32 billion euros by 2030, a doubling of the EBITDA margin from 1.75 billion euros in 2025 to approximately 3.6 billion euros in 2030, and a 53% increase in revenues, growing from 19.5 billion euros in 2025 to 30 billion euros in 2030.
To meet the increasing demand, the plan includes provisions for 28,000 new hires over the next five years. Double-digit revenue and margin contributions are expected from the Cyber, Space (through agreements with Thales and Airbus), and Aerostructures divisions, with the latter expected to reach break-even in 2028.
Growth is also anticipated in Leonardo’s core businesses: Helicopters (+6.4% EBITDA), defense electronics through Leonardo DRS and investments in MBDA and Hensoldt (+12.1% EBITDA), and aircraft (+7.6% EBITDA).
Shareholder Benefits and Recent Performance
Leonardo’s shareholders are expected to benefit from these projections, with an estimated 1.3 billion euros in dividends over the 2026-2028 period. Cingolani indicated a potential payout of 30-40% of adjusted profit if future performance aligns with expectations. The company’s board recently approved a dividend of 0.63 euros per share (+21% compared to 2024), with an ex-dividend date of June 22nd.
Leonardo reported 19.5 billion euros in revenues (+11%) and a net result of 1.3 billion euros (+15%) for 2025. The group also anticipates finalizing the acquisition of Iveco Defense (military tanks and vehicles) in the coming weeks.