Leonardo’s Strategic Shift: Launching a Critical Metals Recycling Initiative

Leonardo has initiated a new industrial program, CRM4Defence, marking a significant strategic move toward securing its supply chain for essential materials. The project focuses on recovering critical metals—specifically titanium, aluminum, and magnesium—from its own manufacturing waste. The announcement was met with positive investor sentiment, with the company's American Depositary Receipts (ADR) trading approximately 1.9% higher by 10:30 AM.

The core objective of CRM4Defence is to establish an independent European supply chain for these vital raw materials. The program will process metal shavings and production remnants, compacting them into briquettes to be reused as high-grade secondary raw materials. This initiative directly supports the goals of the EU Critical Raw Materials Act by aiming to reduce reliance on imports from outside the European Union and to boost the use of certified recycled materials in foundries across the continent. Furthermore, the project enhances Leonardo's environmental, social, and governance (ESG) profile by promoting resource conservation and reducing industrial waste.

Specialized processing facilities for this operation are currently under construction at Leonardo's sites in Nola, Venegono, and Cisterna di Latina in Italy.

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Recent Contract Momentum Supports Positive Sentiment

The launch of this sustainability-focused program follows a series of substantial contract awards announced by Leonardo in the preceding days, which contributed to a favorable market outlook:

• On December 19, the company secured two U.S. contracts collectively worth over $120 million to supply advanced baggage handling systems for Houston Hobby and Melbourne Orlando airports.
• On December 18, an agreement was signed with Italy's TELEDIFE for four long-range radars based on AESA Gallium Nitride technology. These systems are part of the broader "Michelangelo Dome" air defense network.
• On December 17, a contract was finalized to provide 12 M-346 training aircraft to the Austrian Air Force, inclusive of pilot training and a six-year logistical support package.

Financial Calendar and Strategic Outlook

Looking ahead, Leonardo has published its financial calendar for 2026. Key events include a Board of Directors meeting on February 24 to review preliminary 2025 figures, followed by the release of the draft 2025 Annual Report and an update to the industrial plan on March 11.

The company's leadership remains committed to its existing 2024–2028 industrial plan, which centers on digital transformation and reinforcing core business segments. Market analysts suggest that if the current momentum—driven by programs like "Michelangelo Dome" and the new raw material strategy—is sustained, Leonardo's shares could potentially challenge their 52-week high of $33.16. A continued strong order intake, which has already shown significant growth in the first nine months of 2025, will be crucial for this trajectory.